It was relatively quiet today but bullish evidence continues to mount for the USD. USDCAD, for example, followed through on its reversal from a 13 month low. The rally is impulsive (5 waves), which suggests that an weakness should prove corrective and give way to additional strength. Proposed support is 1.3025/50.
11/11 – USDCAD traded to its lowest level in over 2 years on Monday before reversing higher. Price is currently slightly positive on the week so a weekly reversal is a possibility. The top side of the trendline from the 2017 high was support this week, just as it was in September. Proposed near term support is 1.3030.
Nothing has changed regarding my contention that USDJPY is a bull. Action since Monday’s high is a flat and proposed support remains 104.60/70.
11/10 – The near term USDJPY wave pattern continues to unfold. Action since Monday’s high compose small waves A and B. A drop into 104.60/70 in wave C would complete the corrective decline and give way to the next leg up in USDJPY. This proposed support zone ‘fits’ with VWAP resistance in Yen futures (see below).
I don’t look at USDCHF often but there isn’t much to look at today so let’s give it a shot. Price reversed sharply higher from the bottom of the channel that originates at the 2019 high and the rally is impulsive (see hourly chart below). Proposed support is .9190-.9105.
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