JPY ,NZD and AUD rising (09/10/2014)

Interesting developments in the Forex markets today after the minutes of the FOMC meeting last night left the USD weakening. It is interesting to also see how the JPY, AUD and NZD started to rise

currency power 20141009

A quick analysis using our Currency Power indicator that shows how strong a currency is in the scale of 0 to 10 gives the above picture.

  • USD became very weak
  • JPY,EUR, CHF,AUD,NZD seem to be gaining

Nevertheless we do not want to sell something which is allready oversold or buy overbought currencies it’s good idea to review also using the  Trend/Wave/Extreme indicator 

Looking at the Trend/Wave/Extreme indicator focusing on the commodity trading pairs (JPY,AUD,NZD) we can find some interesting conclusions.

twx 20141009

It can be seen that JPY is gaining against EUR,GBP,USD,CHF ,while AUD and NZD are gaining against EUR,USD,JPY. Let’s see in more detail how we can trade the above.

EURJPY (H4) SELL

The Trend/Wave/Extreme mini indicator is showing

EURJPY 20141009png

  • The Trend Bar is Red filled pointing Down Trend
  •  Wave and Extreme Bars are Green filled pointing an Up correction that may have finished
  • A solid Down Trend Line
  • Correction so far has been 130 pips

GBPJPY (H4) SELL

The Trend/Wave/Extreme mini indicator is showing

GBPJPY 20141009png

  • The Trend Bar is Red filled pointing Down Trend
  •   Extreme Bars is Green filled pointing an Up correction that may have finished
  • A solid Down Trend Line
  • Correction so far has been 150 pips

CHFJPY (H4) SELL

The Trend/Wave/Extreme mini indicator is showing

CHFJPY 20141009png

  • The Trend Bar is Red filled pointing Down Trend
  •  Wave and Extreme Bars are Green filled pointing an Up correction that may have finished
  • A solid Down Trend Line
  • Correction so far has been 130 pips

Let us also look at the EURAUD and EURNZD pairs

EURAUD 20141009png

EURNZD 20141009png

It can be seen in both cases there is down trend and down wave based on the bars. EURNZD however is oversold so there is some danger in selling it now. Nevertheless both pairs are approaching key support levels (EURAUD: 1.4300,EURNZD: 1.6000) that could cause a major drop. So keep an eye on these levels

Read about the Trend/Wave/Extreme system here

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