Markets Analysis (22/11/2012)

MARKETS ARE CORRECTING

The market continues to show Euro strength and decline in US Dollar and Japanese Yen.  This can be seen in the Trend indicators of these pairs as nearly all of them are pointing Up. So definitely make a trade in the trend directions shown above, as strong trends are forming.  In addition most of the pairs broke key support or resistance levels as indicated yesterday. Therefore expect to see some correction at the current moment and some extremes.

Best stay away from the NZDUSD and AUDUSD as there appear to be indecision. The trend indicators are conflicting, trading is performed in a narrow range, while wave and trend are opposite.

Can go long EURAUD at the moment as trend is up and still not overbought.

GBPUSD (4-HOUR) BUY

A new uptrend shows to have formed, evidently by the 2 higher peaks and higher lows. In addition the resistance level shown was broken initially and then the pair went for a correction. Keep an eye for two consecutive up candles here and oversold indication and can go long sooner than you thing here.

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system under a 4-hour period. You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.