Unfamiliar with Gann Square Root Relationships? Learn more about them here.
Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: USD/JPY
USD/JPY Strategy: Square in this range. Break of 102.75 or 101.35 will force us in.
Price & Time Analysis: NZD/USD
NZD/USD Strategy: Like the long side while over .8360, but positions should be reduced into this turn window. Will look to cover and go short on a move through .8360.
Focus Chart of the Day: AUD/USD
Two key "Pi cycle" relationships related to the 2011 high and 2001 low in AUD/USD converged this week. We have purposely neglected to mention them until now because we are unsure what they mean for the exchange rate and were hoping to get more clarity by observing the daily price action. It still remains unclear. We do suspect that following such a clear convergence of major cyclical relationships that this time period will ultimately prove to be a very important inflection point for the Aussie. However, we now have to defer to the weekly charts for directional clarity. This week's low of .8900 and last week's high of .9080 are key pivots. A clear break of this week's low will confirm that an important top is in place and set the stage for a resumption of the broader decline. Conversely, a move back through .9080 would confirm that a low of importance has been recorded in AUD/USD. A Pi cycle relationship related to the 2011 high in NZD/USD hits early next week. Perhaps the Aussie is waiting for its Antipodean cousin to show the way?
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.