Friday, 17 July 2009

USD near to medium-term

The USD has gone nowhere for the last several weeks. The EUR/USD is tracing out a clear triangle pattern, which, upon breaking, should yield a move of about 4 figures. I believe that we are completing/done with a minor "d" wave of that triangle, pending a gradual fall towards 1.40, which would give a good entry level for longs against 1.3832

Below is a daily chart of EUR/USD.
Similarly to analysis above, I expect USD/ZAR to advance in a "b" wave and then to fall in what should be the end of the move for USD weakness. This has the potential of forming a neat inverted "head and shoulders" pattern.
Below is a four hourly chart of USD/ZAR.

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