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Aussie to Rally Higher

I'm betting on the AUD/USD heading higher during November and here's why. On the first chart below we see a slow but steady trend higher for the Aussie.
On the second chart we notice the constant pressure by the bulls on the resistance area. With each thrust the odds increase that eventually they will break the dam and push prices upward. I'm placing my bet at 1.7980. This is just below the 1.8000 round figure and yet within the bounds of the monthly ATR for this pair.
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USD/JPY Targets Brexit Highs

The USD/JPY is finally trending up after a long bear market. After some Dollar positive comments at Jackson Hole the pair got a lift. We’re now trading 336 pips higher from the lows marked on August 26th.
Where can we look for a potential target? The average monthly range in this pair has been 520 pips. But that’s low to high, not open to close. A more conservative target would be in the 300 pips range.
On our chart above we see a level that qualifies. The pre-Brexit highs at 106.80 are importa…
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EURo to Weaken Toward the 1.0500 Level

Brexit wasn't kind to the Euro. The pair got sold aggressively after the UK voted to leave the EU. The reaction was partially because this will result in more easing by the ECB as well as calls for referendums in other countries in the Union.
But aside from the fundamentals and the short-term charts, things are not looking better on the long-term charts either. On the daily chart below we can see that the pair broke the important support near 1.1100 on Brexit. This level held up prices for over …
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More Losses for the USD/JPY

Last month we saw a doji pattern in the USD/JPY. This is usually an indecision pattern. But in this case the Doji has been followed by a large red bar. This breaks the stalemate and potentially signals that more losses are to come.
On the lower 4 hour timefame we can see that the pair has fallen by over 500 pips in the last two days alone. So not only do we have the medium-term trend heading down but so is the momentum.
The average monthly range for the USD/JPY is 479 pips but this of course is …
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Further Trend Extension for Cable

I except the current bullish trend for Cable to continue. We show this trend on the 4 Hour chart below. Notice the nice sequence of higher highs and higher lows.
But why am I forecasting 1.4991? Well on the second picture below we see that the Pound has just completed an inverse Head and Shoulders pattern. I wrote about this pattern in my TA post for April but back then it wasn't completed yet.
To arrive at the target for this pattern we take the lowest low to the shoulder, in our case 679 pips.…
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So far so good. The trend is still up and Cable is currently quoted at 1.4702.

This is still far away from my 1.4991 target. But there's still over a week to go and the Pound is a volatile pair, even more so with the coming Brexit vote.

We're just one poll away from a nice continuation rally. A breakout above this month's high at 1.4768 should help my case.

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Not much progress in Cable today. The pair closed down by 28 pips. Intra-day a high of 1.4739 was hit followed by prolonged selling. We closed at 1.4668.

There is some resistance in the area around 1.4740-1.4770. As noted in my previous comment, the 1.4768 level is this month's high in this pair.

A 3-day weekend is coming up in the States. Market participants may be apprehensive of taking on risk ahead of the long weekend. We may have to wait for Monday or Tuesday to see real progress toward 1.4800 and above.

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Large Gains for the Pound

The Pound has been heavily beat up for the past 9 months, falling over 2,000 from the 1.5928 high. On the weekly chart below we can see this massacre unfolding in slow motion. But there are signs we're nearing a bottom here. Notice that the Stochastic turned from below the oversold 20 area and is now heading higher, a bullish sign.
In addition, as we can see on the daily chart below, it appears that the pair is bottoming out. The GBP/USD is slowly forming a Head and Shoulders reversal pattern. T…
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This forecast is working better then expected. We're currently higher by over 200 pips, quoted at 1.4574. The pair has broken the shoulder of the formation above, completing the Reverse Head and Shoulders Pattern.

The Pound is now only 200 pips from my targeted price. Technically the reverse H&S patterns have a target equal from the lows to shoulder, in our case above 600 pips from 1.4520. Hopefully the pair won't overshoot my forecast with only few days to go.

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EURo to Breakout Higher

The Euro had a bumpy ride these past few months. First it rallied to 1.1375, then fell to 1.0825. Then rallied back up to 1.1341 before retracing to 1.1143. We are currently back up to 1.1345. This zig-zag movement is visible on the chart below.
But if we zoom in on a larger time-frame, the picture is a bit more clear. Here we can see that the pair has been bumping on this fairly large resistance area from around 1.13 -1.15 Euros per Dollar. This constant pressure should eventually break this r…
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Japanese Yen to Lose More Ground

The Japanese Yen looks set for another leg of losses. In October the USD/JPY closed higher by 74 pips, a relatively small amount. But this doesn't tell the whole story. As we can see on the chart below the pair keeps pushing on the resistance area between the 121 round figure and the August high at 121.73.
With each new test the odds increase that we will eventually see a breakout higher. But where can that take us? Looking at the longer-term charts our target should be near this year's high at …
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EURo to Resume Downtrend Trend

After several months of range-bound movement, the downtrend in the Euro resumed in October. The prospect for more ECB QE and on the other hand the coming rate hike in the States have pushed the pair down to the 1.1000 mark.
As we can see on the chart above, each retracement formed a flag pattern which then broke to the downside. This happened two times already and we're now coming up to the 3rd time. A break below the 1.1000 figure should help with the downward momentum as well.
But what about o…
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