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Published on Oct 5, 2016
The
EUR/USD pair went back and forth during the course of the day on
Wednesday, as we continue to see quite a bit of volatility. Ultimately,
this does look like a market that continues to find sellers every time
we rally, perhaps reaching down to the 1.1150 level below, and then even
down to the 1.11 handle after that. If we can break down below there,
the market then should reach towards the 1.10 level below. I think
rallies will continue to show signs of exhaustion going forward as we
continue to grind lower more than anything else. You can make a real
argument for a descending triangle in this pair, so it is looking very
much like a market that’s trying to drop significantly. I have no
interest in buying this pair at the moment.
Published on Oct 5, 2016
The
US dollar initially fell during the day on Wednesday, but found buyers
yet again against the Japanese yen. We have broken above the 103 level
during the day, and as a result I feel that the market will continue to
go much higher and perhaps reach towards the 105 level. I think the
pullbacks will offer buying opportunities going forward, on signs of
support. The Bank of Japan continues to work against the value of the
Japanese yen overall, and I feel that if we did break down significantly
we would more than likely find the Bank of Japan either intervening, or
perhaps extending quantitative easing or even at the very least
jawboning down the value of the Yen itself. Also, we have the recent
remarks coming out of the Federal Reserve that perhaps the interest-rate
level in the United States is too low, so this point in time you would
have to think that perhaps we are trying to change the trend overall.
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