Unfamiliar with Gann Square Root Relationships? Learn more about them here.
Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
EUR/USD Strategy: We like the short side while 1.3710 holds.
Price & Time Analysis: AUD/USD
AUD/USD Strategy: Like the long side for at least a few more days.
Focus Chart of the Day: USD/CAD
The second half of next week is a long-term cycle turn window related to the 2012 low in USD/CAD. This should influence the exchange rate. The big question now is determining in which direction the reversal will be? When we first mentioned the turn date about a month ago we thought it would lead to a high (and it still can), but the persistent weakness over the past couple of weeks certainly increases the odds for a cycle inversion (low) especially if weakness continues for another week or so. This is basically just a roundabout way of saying that we will be looking to fade whatever trend materializes over the next few days. Until then we can really just observe.
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved