ForexPros Daily Analysis June 06, 2011
ELLIOTT WAVE FX OVERVIEW
Trading during Asian hours was relatively slow but still bearish for stocks after poor NFP from Friday.
Nikkei lost around 0.8% of value, which however did not help to lif the US dollar, which is trapped in 50-80 pips ranges against the majors ahead of the European open! From a larger perspective, however, dollar is likely to weaken early this week, as price action suggests.
Gbp/Usd
Pound found resistance in the past week at 1.6547 which appears to be only a temporary top, as run from 1.6060 was a clear impulse move. Even if whole bounce from 1.6060 is just a deep corrective wave 2/B, we still need to see one push higher, which will be wave (c), before recovery can be done. The reason is a sub-structure of a correction, which we know must be minimum in three waves, and wave (c) will be a third wave of that move.
USD/CHF
Usd/Chf fell into a new low on Friday, and the reason for the move was lower dollar index and lower stock prices at the same time. In situation like this Swiss franc will tend to react as a safe haven currency.
From a technical point of view, an upward corrective bounce is still what we are waiting for, before another strong sell-off occurs. We are talking about wave 4), which is part of an incomplete impulsive decline.
USD/JPY
Usd/Jpy is falling for the past few days, as poor economic news from the US shocked the markets across the board.
As you know, from a technical point of view, we anticipated this sell-off, which however is still incomplete, as we are looking for a wave C) decline with targets seen below 79.57! Critical region was now moved lower, down to 81.77!
—
Forex Trading analysis written by Gregor Horvat for Forexpros.
—
New on Forexpros, the Currency Correlation Calculator!
—
Disclaimer:
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.