February 24, 2021

Market Update 2/23 – Interesting CHFJPY Setup!

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.
February 5, 2021

Market Update: February 4

EURUSD has reached the 1.1960s, which is marked by the top side of the 2008-2014 line and center line of the channel from the March low. It’s important! I’m ‘thinking’ some consolidation / bounce here before the level gives way. Recall that the rally from March is in 5 waves so a move back to the former 4th wave low at 1.1603 is suggested (as per wave guidelines…see the 4 hour chart below). Proposed resistance is now 1.2000/25. The top of this zone is the center line of the Schiff fork from the high (red line on the hourly chart…2 charts down). That line has been support/resistance for the last week.
February 2, 2021

Market Update 2/1 – Bullish USD Head and Shoulders Patterns

DXY is trading right at the neckline from a head and shoulders bottom pattern. The objective from the pattern is 92.80 (magenta line) but the former low at 91.75 is a possible pausing level. Ultimately, I’m looking towards the underside of former channel support. This is near 95 and in line with the March low, former 4th wave high, and 38.2% retrace of the decline from the March high (see weekly chart below).
November 16, 2020

Market Update: November 16

Copper is at new highs and again testing channel resistance. Be aware of the potential for failure up here again. If strength persists then know that the 2017 high is at 3.2220. A push above there would put copper at its highest level since 2014!
November 12, 2020

Market Update: November 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.
September 30, 2020

Market Update: September 30

Gold traded into proposed resistance at 1908 today and immediately pulled back. I am of the view that price resumes lower from the current level towards the lower parallel near 1750. Failure to stay below today’s low would risk strength into the upper parallel of the bearish channel near 1940.
August 17, 2020

Market Update – August 17

Silver made a 2 bar weekly volume reversal last week. Volume reversal logic is explained here. The only other signals with the same volume requirements occurred in December 2010 and April 2011.