Good Morning
Hey Cako. Great to see you posting. Sorry about the tech issues you experienced yesterday. Your £100 is in the post.
Well well well. Dollar strength or just a flush-out ??
I opt for the latter. I've been saying for the last few days that Gold & Euro are overbought, and are need of a pullback.
The interesting part is these are no longer overbought and yet are not oversold either. Cable & EURUSD are all now below the 4hr 20's, which have been crossed by the 60m 20's. Gold is also under but the 60m 20 has yet to cross. This could just power up again this morning if it can break up through the 60m and 4hr 20.
Crude is just banging on the door of $150. Will it be today? Unlikely with the U.S holiday, but next week is a strong contender.
As a slightly longer-term play I'd be happy to to go long on any retracement back to the 4hr 20.
Funny how one set of figures can change and how the whole correlation thing can change quickly too. Earlier in the week we saw USDJPY dragging around EURJPY, then we saw EURJPY pulling USDJPY about. Now it EURUSD that is having a tug at EURJPY. Why can't you all leave her alone ?
Yesterday morning's longer-term outlook for EURJPY was bullish and USDJPY looked bearish. Remember I always look at my 60/240m charts first.
Now we have thew complete opposite.
Inteestingly, USDJPY is back above the daily 20. I wonder how long she can sustain that. The 4hr CCI indicates overbought levels, but the 60m 20 is popping up and offering some support as we speak.
Onto the smaller picture with our 5/15m set-up.......
If the trend is your friend then you need to wait for pullbacks before shorting cable Euro or Gold, but be careful. I'm not convinced these will continue to fall. Non Farm numbers were still worse than expectation and Euroland did put the rates up. HOwever, if we're to trade what we see and not what we think, then shorts would be the way forward.
I'm waiting for a direction from Crude & Gold, but EURJPY looks like a recovery mission might be in the making IF the 15m 20 holds and IF the 60m and 4hr 20's break. Would like to see my little 84 giving me some guidance, which is almost there. With EURUSD retracing and USDJPY looking stable at the moment then that would be my most likely candidate for later IF it can break 168.00.
If Gold, Cable & EURUSD can get past their respective 60m 20ema's then that would give rise to an 84CCI in positive territory and little opportunities may present themseves. I'f the 0.0 lines of the 84's are rejeced and these 3 start to fall again I'll be putting my faith in my 21CCI to get me back in.
From tomorrow I will refer to CCI's opposed to 20ema for the sake of keeping these posts simple to understand. The 20ema is the same as the 21CCI 0.0 line but will try to stick to the script so as not to confuse.
Should be an interesting morning with Pimp & Hippo-boy at the helm.
Please come back 007. We were only joking !
Top o the marnin'
