Price & Time: Key Week For the Euro?

Talking Points

• 
  USD/JPY consolidates above key pivot
  


• 
  GBP/USD overcomes key Fibo
  


• 
  EUR/USD approaching key cyclical pivot
  

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Foreign Exchange Price & Time at a Glance:

Price & Time Analysis: USD/JPY

ChartPrepared by Kristian Kerr

• 
  USD/JPY continues to consolidate above the 3rd square root relationship of the year’s high at 122.45
  


• 
  Our near-term trend bias is lower in the exchange rate while below 124.80
  


• 
  A move under 122.00 is needed to set off a more important leg lower in the rate
  


• 
  A very minor turn window is eyed here
  


• 
  A close above 124.80 would turn us positive again on the pair
  

USD/JPY Strategy: Like the short side while below 124.80

Price & Time Analysis: GBP/USD

ChartPrepared by Kristian Kerr

• 
  GBP/USD overcame the 61.8% retracement of the late May range on Monday
  


• 
  Our near-term trend bias is higher in the pound while over 1.5465
  


• 
  A move over 1.5670 is now needed to confirm that a more important push higher is underway
  


• 
  A very minor turn window is seen later this week
  


• 
  A daily close below 1.6465 would turn us negative on the pound
  

GBP/USD Strategy: Like the long side while above 1.5465

Focus Chart of the Day: EUR/USD

The next week or so should prove key for EUR/USD. The big question surrounding recent movements in the exchange rate is whether the advance of the past few weeks is the start of a new leg higher or just some sort of backtest of the mid-may high before the primary downtrend re-asserts itself? Near-term cyclical analysis suggests that if it is indeed the latter then the euro shouldn’t really rally past Friday of this week. New highs for the month after Friday would be seen as a bullish development that would clear the path for a much more important foray higher in the single currency.

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— Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.

To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX

Price & Time: Key Week For the Euro?