Markets Analysis (5/12/2012)

Today we continue to see the strength in Euro, Australian/New Zealand  Dollars and weakness in US Dollar and Yen.  Most Euro currencies are now overbought including the EURGBP that was pointed out yesterday while the EURJPY broke its 107.60 resistance and rose higher.

EURAUD (4-HOURS) BUY

This was also pointed out yesterday. We have trend and wave indicators pointing up, the chart pattern shows also an uptrend pattern that is continuing up after its downtrend  correctional wave was over and is now heading higher. As it yet not overbought it have more way to go up.

USDJPY (4-HOURS) BUY

You may want to try your luck with this one as the trend and wave indicators remain UP and yet not overbought. Taking into consideration how the EURJPY moved up and that pair bounced of its 81.60 resistance it could reach 82.85 again.

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.