EURUSD spiked into and reversed from the noted 1.2220. My view is that a 3 wave rally is complete from the February low and that either a 3 or 5 wave decline will draw price beneath the February low in order to complete the larger correction from the January high. Short term channel support for a bounce is about 1.2080.
AUDJPY is nearing the line off of the 2008 and 2016 lows. This line was support in October 2018 and resistance in early 2019 so watch for resistance there again. The line is about 85.80. Daily RSI is 83.6 (see the next 2 charts), which has only been reached once before, in December 2005. Price topped then and fell over 6 big figures in the next 2 weeks.
The recent GameStop ($GME) short squeeze situation dominated the news cycle for a few days in January and February this year and has been a recurring topic in the business and finance news journals.
NZDUSD has entered a massive zone (.7370-.7550). The bottom of the zone is defined by the November 2011 low and where the rally from the March 2020 low divides into Fibonacci proportion (2nd leg of the rally equals 61.8% of the first leg). The top of the zone is defined by the July 2017 high (also the 61.8% retrace of the decline from the 2011 high). RBNZ is tonight, which brings forth the potential for volatility and a reversal (or the beginning of a reversal process) from significant price levels.
Crude made a weekly key reversal last week at a defined level (underside of the trendline off of the 2016 and 2018 lows). This is also the level that provided resistance in 2015 before the plunge into the early 2016 low. The trend in the inflation trade (basically USD down) is strong but crude could come off from the current level.
1.2000ish remains a possible bounce level for EURUSD but I’d keep an eye on 1.2090-1.2100 for resistance now too. The level is defined by VWAPs from the November and February lows. These VWAPs were previously support. Now broken, watch the lines for resistance.
The Sortino Ratio shares many similarities with the Sharpe Ratio, except the Sortino Ratio offers much more insight into the risk associated with a given strategy or asset.
TLT has been tanking but is nearing a possible pivot from the center line of the channel from the March high. Daily RSI is 25.5. Magenta dots on the chart below show when RSI has been 25.5 or lower. Also, the 2016 is 143.36. This is an extremely important chart given the ‘inflation trade’ narrative. A bounce in TLT would indicate a pause/pullback in the in the nearly year long ‘inflation trade’.
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GBPUSD is nearing the critical 1.4000. The trendline off of the 2007 and 2014 highs is slightly above the BIG figure (see below). 2007…2014…2021 (7 year cycle)? Again, seasonal tendencies are extremely bearish through until the Vernal Equinox. I’m on alert for signs of a top near 1.4000.