We reached almost all our long term targets, and guess what? Soon it could be the time for making money on the opposite direction. We have mentioned over and over again that the forex market moves in cycles and all we have to do is to identify those tops and bottoms. Well, it kinda seems like that the US dollar is topping out against many of her major counterparts and we could expect some fresh drops on sexy Ms. USA. To further back up our claim, Wall Street Journal has run a report which shows that over the past 100 years the stock markets decline in September, and that is directly correlated to the US dollar.
Without further ado, I bring to you today’s first technical analysis and that is of USD/JPY who finally reached our massively buzzed about target of 105 and made the Invest Diva followers and the Japanese economy very happy. The pair is now approaching the previous top from back in January at 105.432. A break above this level could open doors for more gains towards the 107 area but with the RSI way above the overbought zone, we could expect a rebound in the pair with 103.361 as next alternative target.
EUR/USD remains under pressure below the Ichimoku cloud teasing our previous target of 1.31 and we could still see more drops with 1.29 as target.
GBP/USD also saw a huge decline on Monday, reaching and breaking below our previous target of 1.65 (Congrats, obviously) and the pair is now approaching our next bearish target of 1.63.
A break above the pivot point of 1.69 and above the Ichimoku cloud could change our outlook back to bullish with 1.71 as the first alternative target.
USD/CHF remains on the upside and quickly reaching a previous top at 0.9249. Once we top out this level, we could expect a change in the direction of the pair’s dance moves and drops back towards the 0.87 level.
That won’t happen without a confirmation of a rebound so stay tuned for more updates and watch our for reversal pattern formations on the forex dance floor.
Intraday Forex Technical Levels
Invest Diva Likes: Short positions below 172.78 with targets at 172.38 and 171.98 in extension.
If Pair Goes Nuts: Above 172.78 look for further upside towards 173.28 and 173.78.
What’s up on the Forex Dance Floor: The pair is on an overall uptrend but is now moving down above the Ichimoku’s cloud. The RSI is also moving down and reached the neutrality area.
Supports and Resistances:
172.78 Pivot point
Invest Diva Likes: long positions above 0.8293 with targets at 0.8347 and 0.8401 in extension.
If Pair Goes Nuts: Below 0.8293 look for further down moves towards 0.8260 and 0.8243.
What’s up on the Forex Dance Floor: The pair is on an overall downtrend and below the Ichimoku’s cloud, but it could be reaching a bottom at the end of the cycle for the pair The RSI is rebounding from the oversold zone
Supports and Resistances:
0.8320 Pivot point
Invest Diva Likes: Long positions above 0.9336 with targets at 0.9336 and 0.9355 and 0.9386 in extension.
If Pair Goes Nuts: Below 0.9336 look for further downside towards 0.9303 and 0.9291.
What’s up on the Forex Dance Floor: The pair has broken above the Ichimoku’s cloud and teasing our pivot point of 0.9330 with the RSI moving up from the neutrality area.?
Dow Jones Intraday: bullish bias above 17000.
Invest Diva Likes: Long positions above 17000 with targets at 17130 and 17185 in extension.
Invest Diva Likes: Short positions below 1275 with targets at 1258 and 1255 in extension.
Invest Diva Likes: Short positions below 94.7 with targets at 92.5 and 91.3 in extension.
Alternative scenario: Above 94.7 look for further upside with 96 and 96.7 as targets.