Tag Archives for " Euro trends "

The Market Pauses . . .

Some Price Points for Breakaway Moves . . .

The Stock Market has expended a lot of energy in it's upwards climb since the election.

To assimilate this upwards price action, markets need to pause to re-energize and consolidate the recent price moves.

The trend has shifted to sideways which is essentially nothing more than a non-trending market state.

Whether the market breadth is for 30 stocks (the Dow), 500 stocks (the S&P 500 index) or the larger 2000 company group represented by the Russell 2000, we see the same action displayed: A consolidation or sideways trend is in process following our recent strong upswing in prices.

This, however, is not just a local market phenomena. By examining the Japanese Stock Index, we find the very same type of activity: a pause in upward momentum.

I've provided a few price points to watch in the Nikkei and the Dow in the charts to the left.

It would not be out of line at all for the markets to pull back like a spring and then launch upwards to new highs.

One needs to allow a certain amount of price movement (which is derived from some formulas I've learned over the last 45+ years of studying WD Gann's materials, clues & rediscoveries) in order not to panic when prices pull down from their present high points.

Locating critical price levels for highs and lows as well as highly probably turn dates are really some of the most sought-out tools that traders wish for.

Predictions can be made very accurately, but, one must first put away faulty assumptions and teachings. - George

Euro Price Points to Watch . . .

Watch These Price Points for Breakaway Moves . . .

Here's a quick rundown on some price points of interest in the Euro for the next few days.

We're close to a price break down point at the 1.0520 level.

Note the upper green line. Unless price rises and closes above 1.0637, don't consider it a trend.

Click on chart to enlarge for clarity.

Euro Rally Trigger Prices

THE PRESENT EURO DAILY TRIGGER PRICES:

A funny thing happened on the way to the bottom . . .

While awaiting the decline of the EURO, it decided to avoid our downside breakthrough price of 111.00 and, instead, rallied (on a short-term basis).

eur3

As all scenarios must be entertained, it becomes most important to take note of which price point will indicate a stronger rise in price.

We’ve already flirted with one trigger price and have not exceeded it, but, the most serious one promising a strong upswing will be at the 116.00 level.

We already have the downside trigger price covered from our previous post but, a closer trigger for a downmove can be placed at 1.1225.

Prices breaking below this price will indicate a further downswing ahead. – George

 

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The Euro and Pound to Play ‘Catch-up’

EURO & BRITISH POUND WILL FOLLOW THE REST DOWNWARDS

I’ve watched with amusement starting last Monday as the prices for the Euro as well as the British Pound acted like all was  well and the backdrop of news on Greece was of no importance whatsoever.

Where prices were expected to at least reflect some of the negativity that is the EU today on Monday, prices instead climbed.

However, these actions are only the window dressing for a scene resembling the time when George Soros forced the British Pound to devalue. Hundreds of millions were spent then, and, I’m convinced are being spent now, to give the public the illusion that ‘all is well’ with the currency.

Here’s what’s shown on the chart for the Euro and British Pound presently:

eur

The Euro has been the most stubborn to accept the fact that it’s going down even more and has managed to have 3 higher closes over the past 5 days of trading. This is pushing the probability limit for a market in a strong declining trend and lower prices should be expected to follow.

The British Pound shown below also had a run of 3 higher closes in the last 5 days but, the last 2 days have been lower close days and the steam has run out of this forced upswing it appears.

gbpThese aren’t the only currencies in the World however and, further clues as to the future direction of currencies may be gleaned from two other important currencies; the Australian Dollar and the Canadian Dollar.

First, the Australian Dollar:

ausThe Australian Dollar has shed the illusion of a false upswing and already continued it’s honest journey South in price.

The Canadian Dollar has been even more honest having put in only a single higher daily close in the last 5 days time.

cad

A serious continuation downwards has begun again for the Canadian Dollar, but, this currency won’t be alone.

In summary, we’ve been presented with a ‘show’, an illusion relative to the Euro and the British Pound over the last several days. This has been for Public Relations only and a smokescreen as the charts reveal.

Previously propped up by their sister currencies (like the Australian & Canadian Dollars), one-by-one those other currencies are leaving the Euro and British Pound behind by continuing on the only path they can take at the moment – DOWNWARDS.

When the Euro & GBP finally let go, they will have to play ‘catch-up’ with a highly probable fast move down. Watch for it. – George