USDCHF Analysis.
USDCHF broke above the downtrend line from 1.0624 to 1.0464, suggesting that a cycle bottom is being formed at 1.0257 on 4-hour chart. Key resistance is at 1.0464, a break above this level will confirm the cycle bottom and indicate that the fall from 1.0624 had completed, then the following upward movement could bring price to 1.0550-1.0600 area. Support is at 1.0257, only break below this level could trigger another fall to 1.0200 zone.
Daily Forex Analysis – August 24, 2010
August 24th, 2010Daily Forex Analysis – August 23, 2010
August 23rd, 2010USDCHF Analysis.
USDCHF stays below a downtrend line from 1.0624 to 1.0464 and remains in downtrend. As long as the trend line resistance holds, downtrend is expected to continue and next target would be at 1.0200 area. On the other side, a clear break above the trend line resistance (now at 1.0415) will indicate that a cycle bottom has been formed at 1.0257 already and the fall from 1.0624 has completed, then further rally could be seen to 1.0500-1.0600 area.
Efficient Market Hypothesis: R.I.P.
August 20th, 2010By Elliott Wave International
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical "Parthenon" of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the "Efficient" model so deep as to bring the entire theory crashing to the ground.
Daily Forex Analysis – August 20, 2010
August 20th, 2010USDCAD Analysis.
As expected, USDCAD broke above 1.0340 key resistance, suggesting that a cycle bottom had been formed at 1.0247 level on 4-hour chart. Now the rise from 1.0247 is treated as resumption of uptrend from 1.0107, further rise could be seen in next several days and target would be at 1.0600 zone. Support is at 1.0340 and key support is at 1.0247, only break below these levels could trigger another fall to 1.0000 area.
Daily Forex Analysis – August 19, 2010
August 19th, 2010AUDUSD Analysis.
AUDUSD formed a cycle bottom at 0.8858 level on 4-hour chart. Now the rise from 0.8858 could possibly be resumption of uptrend from 0.8066 (May 25 low) and the fall from 0.9079 is treated as correction of uptrend. Another rise towards 0.9221 would more likely be seen after correction, however, a break above 0.9079 is needed to confirm such case. On the other side, below 0.8858 will indicate that the pair remains in downtrend from 0.9221, then next target would be at 0.8700-0.8800 area.
Slicing the Neckline: A Classic Technical Pattern Agrees with the Elliott Wave Count
August 18th, 2010By Elliott Wave International
In the August issue of his Elliott Wave Theorist, market forecaster Robert Prechter alerted readers that the U.S. stock market was slicing the neckline of a classic head-and-shoulders pattern in technical analysis, and that this may send the market into critical condition.
Prechter said that when the Elliott wave count and a head-and-shoulders pattern are saying the same thing about the stock market, it’s best to pay attention.
Daily Forex Analysis – August 18, 2010
August 18th, 2010GBPUSD Analysis.
GBPUSD stays in a trading range between 1.5535 and 1.5712. Another rise towards 1.5712 key resistance would more likely be seen later today, a break above this level will confirm that a cycle bottom has been formed at 1.5535 level on 4-hour chart, then another rise towards 1.5997 previous high could be seen. On the downside, below 1.5535 could resume the downward move from 1.5997, then next target would be at 1.5400 area.
Deflation: First Step, Understand It
August 17th, 2010By Elliott Wave International
"Fed’s Bullard Raises Specter of Japanese-Style Deflation," read a July 29 Washington Post headline.
When the St. Louis Fed Chief speaks, people listen. Now that deflation — something that EWI’s president Robert Prechter has been warning about for several years — is making mainstream news headlines, is it too late to prepare?
Daily Forex Analysis – August 17, 2010
August 17th, 2010GBPUSD Analysis.
Being supported by the rising trend line from 1.4346 (Jun 8 low) to 1.5124, GBPUSD rebounded from 1.5535 level. Now the pair is forming a cycle bottom at 1.5535 level on 4-hour chart, key resistance is at 1.5712, a break above this level will confirm the cycle bottom, then another rise towards 1.5997 could be seen. Support is now at 1.5535, only break below this level could indicate that the downtrend 1.5997 has resumed, then deeper decline could be seen to 1.5400 area.
Daily Forex Analysis – August 16, 2010
August 16th, 2010USDCHF Analysis.
USDCHF stays in a trading range between 1.0461 and 1.0624. Support is at 1.0461, as long as this level holds, another rise to re-test 1.0675 key resistance is still possible, a break above this level will indicate that the fall from 1.1730 (Jun 1 high) had completed at 1.0331 already. On the other side, a breakdown below 1.0461 could trigger another fall towards 1.0331 previous low.
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