General Notes:
Crashing down! And we do not mean the stock market but the confidence of the people in the possibility of investing rationally in this environment. The CDS-OTC-Leverage-Derivative game was already described by Warren Buffet as "financial weapons of mass destruction", and that's what we are seeing now.
The lack of volatility on the way up (grinding down the traders) and the excessive volatility on the way down (destroying the concept of investing) are frustrating everybody. The problem is that traders can cope, and it’s their job anyway.
But the little guy with it's IRA or other savings, counting on a normal income for its old age (baby boomers) or hoping to make some return in an environment of 0% is being demoralized.
This is what the current financial system is causing and it's not only Greece or Financial reform or "flash crash". It is everything together since 2007-8. Confidence is gone and when it happens it is a real difficult job to regain.
AUD/USD Visual Trading Update
Price and Indicators Technical Overview:
The break and test of the weekly rising trend line was really important here. The pair is down hard, even when it has one of the highest interest rates attached to it. It shows you that fundamentals are less important than the technical's and that in this case the liquidation of the pair have background reasons we cannot see in the media. We think it is attached to China. Oversold, but as we saw in the EURO, it can kill if you take a position for the rebound too soon.
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:
You can see the exact correlation between the stock (risk) markets and this pair. It is the "funding" carry trade game that is moving the pair these days and the technicals are quite bad. In principle, we should see a test of the lows at least.
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
Green Wave Capital LTD (c) INFO@GreenWaveCap.com
