Scandex Technical Weekly: 11/15/2020

EEM (EMERGING MARKETS) WEEKLY

EEM completed a 2 bar weekly volume reversal last week (up on big volume into a 50 week high and down the next week on big volume).  This 10 year chart speaks for itself…the signals are awesome.  This is yet another USD positive sign (stronger USD and weaker EM go hand in hand).

GXC (CHINA) WEEKLY

China also made a 2 bar weekly volume reversal last week.  There was one just before the 2016 low and one at the 2018 high.  I’m of the mind that the run from the March low ended at last week’s high.

USDCNH WEEKLY

USDCNH made a weekly J Spike last week (price based only indicator).  The platform that I use to run these studies only includes USDCNH data since 2013 and this is the first bullish signal.  There have been several bearish signals; at the 2018 and 2019 highs.  A turn higher in USDCNH ‘fits’ with a turn lower in Chinese equities.

USDJPY 30 MINUTE

USDJPY has dropped into proposed support and the decline in proposed wave C is impulsive and therefore possibly complete.  I am looking higher in USDJPY now.  I’ll wait for active hours before deciding whether or not to enter.  Stay tuned.

11/12 – Nothing has changed regarding my contention that USDJPY is a bull.  Action since Monday’s high is a flat and proposed support remains 104.60/70.

CANADIAN DOLLAR FUTURES WEEKLY

CAD futures made a 1 bar weekly volume reversal last week.  This the first bearish one (USDCAD bullish) since the November 2007 high (USDCAD low)!  The longer term signal supports the idea that weakness should be bought.  Proposed support remains 1.3025/50 (see below).

11/12 – It was relatively quiet today but bullish evidence continues to mount for the USD.  USDCAD, for example, followed through on its reversal from a 13 month low.  The rally is impulsive (5 waves), which suggests that an weakness should prove corrective and give way to additional strength.  Proposed support is 1.3025/50.

USDCAD 30 MINUTE

GBPUSD 4 HOUR

GBPUSD followed through on the short term reversal evidence last week before bouncing back on Friday.  Proposed resistance is now 1.3234/62.  The bottom of the zone is the 61.8% retrace and the top of the zone is the noted high volume level from last Wednesday.

11/11 – Cable reversed lower from channel resistance today.  A 4 hour volume reversal triggered in the process (see below).  I’m looking lower towards the well-defined 1.3005 as long as price is below today’s high.  Proposed resistance is the high volume level from today at 1.3262.

NZDJPY DAILY

NZDJPY hit 5+ year trendline resistance last week before coming off slightly.  In fact, a daily J-Spike registered on Thursday.  That chart is below.  Signals on both sides of the market have been reliable over the last 5+ years.  Watch for resistance near 72.30 now.  I know that a lower NZDJPY and higher USDJPY don’t make much sense so one of these ‘ideas’ is probably wrong.

NZDJPY DAILY