General Notes:
There is a mounting feeling that the European crisis has achieved its apex, and that there is a chance for some stabilization before the next step of the bursting credit bubble will be upon us.
It is of course a fallacy to think that after the bailout package (this time of nations) the problem is fixed. Anybody can tell you that you cannot put out a fire with gasoline. It's the same in economics: you cannot solve a debt problem with again more debt.
Somebody must pay at the end, and when the process gets to a wall, and it is impossible to re-pay or to roll-over the debt, its insolvency. For the private, the corporate and the country. The question that we have is: When this wall will be reached for the big fishes: UK-Japan-US?
AUD/USD Visual Trading Update
Price and Indicators Technical Overview:
Last time we said "After making a double bottom near the 78.6% area, the pair is starting to show some strength again. China is a heavy duty burden here and could cause the pair to sink lower. The SL area for new LONGS should be the double bottom level (0.8750) ".
The pair did move a bit lower but it confirmed a possible 5 waves down from the top. This means that there is a good chance for an ABC up now. China is getting worse but there is a chance of stabilization in the EURO.
EUR/USD Visual Trading Update
Price and Indicators Technical Overview:
Last time we said "The question now is if the pair will reach the lower boundary of the descending channel. Strong support says now, momentum says yes. We will see. Look at the general notes about our view here. OVERSOLD! But it can continue…." And it did reach the boundary. Now what? Is it not enough or will the currency finds some footing here. We need to see more price action to decide.
USD/JPY Visual Trading Update
Price and Indicators Technical Overview:
The pair broke the ascending channel and then… The only thing that we want to mention here is the scope of the rebound: Wow! Could it be that the hands of the Japanese Central Bank are in this rebound to prevent the YEN to appreciate too much? If it was an intervention, then they got a re-enforcement from the measures of the ECB. A re-entry inside the ascending channel limits will change the bias to LONG.
Charts Legend:
3 Price Windows: Main (Daily), Right Side (Up: 4 Hours, Down: Weekly)
INDICATORS:
Simple Moving Average (20): Green
Average of Average (9 weighted): Violet
Price Channel (20): Orange
Volume: Black
Daily separations: Black Dots
Support & Resistance price areas: Light Blue Areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers
RSI (10): Blue, ADX(20): Blue
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