One is dropping below its MA 50′s and the other is popping above, after the ECB sat on its hands with rates but made a lot of Jawboning about ‘unconventional’ stimulus in the battle against the dreaded deflation.
It is unbelievable the degree to which people still have confidence in these clowns (including the ones packed into the little clown car here in the US), but apparently they do.
The Euro is closing in on a target (the top downtrend line) we have had on since the bottoming pattern formed during the Euro crisis drama a couple years ago.
Euro monthly, from NFTRH 273
I am long Yen by a trade and long the USD by significant cash position. Other than that I don’t really care about FOREX. For anyone who does however, EWI is free weeking again and you just might want to check it out. I am going to go get it, but if past is any guide for me personally, I’ll probably not pay much attention. … Currencies just don’t float my boat other than as macro indicators and such.
Forex FreeWeek, Feb. 11-19
Now through noon on Feb. 19, test-drive the trader-focused Currency Pro Service — at no cost to you.
You get 100% free access to all the charts, forecasts (intraday and daily), and video updates. This Currency Pro Service combination sells for $494/month, but you get it free for one week only. No catch, no obligation, no credit card needed.
Today, you need to be paying attention to forex because of:
- Several high-probability Elliott wave trade setups in EUR/USD and USD/JPY
- The emerging currency crisis and its implications
- The new Fed chief and potential changes to the QE
Want to know where FX markets are headed in the next few hours, days and weeks?
Elliott wave patterns are telling you now where the next major opportunities are. Find out now during EWI’s Forex FreeWeek.
Learn more and get free, instant access to EWI’s FreeWeek of FOREX analysis and forecasts now >>
P.S. . FreeWeek is one of EWI’s most popular programs, and it’s perfect for anyone curious about EWI’s subscription services. Please don’t hesitate to forward this post to your friends.
 Here’s an example of one pair that did happen to interest me, as it is USD-JPY. It was posted at 3:01 today… click the graphic for full size.
The Aussie has been very bearish but recently turned up above formerly broken resistance.
XAD weekly from NFTRH 273
Canada is still bearish after breaking down from a brutal looking long term pattern.
CDW weekly from NFTRH 273
Traditionally these currencies turn up with commodities and US inflation. If there is to be a coming inflation issue, we might expect the same. But then again what is traditional anymore in today’s steroid-enhanced asset markets? Canada looks just awful.
NFTRH has been noting that the Nikkei had lost support, while its whipping boy in the mirror, Johnny Yen was looking a little bottomy. As of today, here’s Johnny…
One of a multitude of indicators I see now that show risk flying ‘OFF’ as greedy casino rats the world over try to abandon ship.
Two forms of money; one official but its only value is in ‘confidence’. The other is not really money, but its value is of something more than confidence. All confidence was lost in gold in 2013, so it had better have something more going for it. It is debt free as it is no one’s liability and it has been used as money for centuries.
Okay, blah blah blah… gold bug sighting above. What I wanted to actually do is show a chart of GLD & UUP looking pretty darned in line with each other over the last few months.
Whatever their differences, in the big ‘RISK ON’ environment cooked up by the Fed a couple of ‘risk off’ items have been fairly in unison outside the party. Today they are both above their 50 day MA’s.
Party on Garth.
By Tom McClellan
Chart In Focus
Bond Yields Say More Downside For Dollar
November 15, 2013