Forex Daily Podcast

We hope you caught those moves on the EUR, GBP, and CHF. All three currencies were good for 40 pips or more trading the correction. We continue to favor a stronger USD in the JPY, EUR, GBP, and CHF.

The EUR corrected back down to near the low. We were expecting wave c of a flat from this low which would have been an impulsive move up. When that didn't materialize we switched our expectation to a contracting triangle. We should see the EUR fade to move lower. Looking for a firm break of 1.1943 to confirm the next move down likely to the 1.1850 level. The EUR currently trades at 1.1953.

The GBP also corrected down past it's previous low and continues to fade lower. we will look for a firm break of the 1.7400 level to confirm the next move down. The GBP currently trades at 1.7417.

The CHF corrected up near it's previous high before pulling back. We are looking for a firm break of the 1.3025 level. The CHF currently trades at 1.2988.

We think the JPY is in wave B of a larger correction. This current move up should unfold as a 5 wave move taking the currency to the 118.80 level or above. This could be the start of the next run up, but we are favoring another pullback to the 117.50 - 116 level at this time. The JPY currently trades at 118.40

The CAD seems to take on a life of it's own. We continue to favor a move lower to the 113 level. The current pattern looks like a 3 wave move up that is nearly complete. We hope to find a trade lower just above these levels. This is a difficult currency to read right now so be cautious. The CAD currently trades at 1.1546.

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