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.
Foreign Exchange Price & Time at a Glance:
USD/CHF:
Charts Created using Marketscope – Prepared by Kristian Kerr
-USD/CHF found support the week before last at the .9210 2nd square root progression from the year-to-date-low
-Subsequent strength has turned us positive on the dollar with focus now on the 78.6% retracement of the March to April decline in the .9500 area
-Traction over this level is now needed to setup further gains towards .9565 and beyond
-Near-term cycle counts seem to favor strength for a few more days
-The 61.8% retracement of the March to April decline in the .9425 area is key support and only weakness under this level turns us negative on the pair
Strategy: Looking to get long on a dip. Eyeing the .9474-.9500 area at the moment.
USD/CAD:
Charts Created using Marketscope – Prepared by Kristian Kerr
-USD/CAD rebounded sharply near the middle of the month from just below the 61.8% retracement of the year-to-date range in the 1.0090 area
-Follow through strength above the 1.0210 50% retracement of the March to April decline has shifted our bias higher in Funds
-Immediate focus is now on the 2nd square root progression from this month’s low near 1.0280 with strength over this level needed to trigger a more important push higher
-Our near-term cycles are at a crossroads of sorts with scope seen for a minor peak here or early next week
-A confluence of Gann levels in the 1.0235 area is now key support and only weakness below this level undermines the positive technical structure
Strategy: Looking to buy on a dip towards the support zone in the 1.0235 area.
EUR/SEK:
Charts Created using Marketscope – Prepared by Kristian Kerr
-EUR/SEK has rallied sharply over the past week or so after finding support near the 8.3000 78.6% retracement of the late 2012 advance
-Subsequent strength through the 1x1 Gann angle line from the year-to-date high has turned us positive on the cross
-A convergence of Gann lines related to this year’s extremes in the 8.6500 area has so far capped, but strength over a Fibonacci confluence near 8.6750 needed to confirm a more important trend shift
-Cycles indicate potential for a minor turn today and early next week
-The 50% retracement of this year’s range in the 8.5200 area is key support and only weakness below this level would turn us negative on the exchange rate