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: Short against a daily close over 1.3710.
Price & Time Analysis: AUD/USD
AUD/USD Strategy: We like the long side while over .8910, but positions should be trimmed into this turn window.
Focus Chart of the Day: GOLD
We have been on the lookout for a general USD revival this week, but so far it is proving illusive at least with respect to the European currencies. On the European side of the spectrum we will give it a few more hours before shifting more focus and attention to Gold and the commodity bloc. In our view, the most important potential cycle turn window at work this week is in USD/CAD. This still looks to be a few days off, but an important low looks to be setting up soon. Gold, however, is a different story as the metal has turned rather abruptly from just under key Fibonacci resistance right at the start of the cycle turn window we highlighted last week. Is this the start of a broader USD advance? It certainly could be, but follow on weakness back under 1300 is really needed to signal that this is anything more than just an immediate correction of an overbought condition.
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.