This is the perfect example of how aligned and connected the markets are.
Looking at the price action, we can see that the recent move up beginning in May wasn't produced by any sort of major turn. It just decided to move up. That screams short-lived relief rally to me and could likely end up serving as a bull trap to catch the newbies off-sides.
When price resumes its downtrend (weekly/monthly) all of those stops will be taken out which will provide the fuel needed to drop into the final low which would establish right shoulders on all pairs. All 4 pairs should form that low and begin to turn simultaneously so should be pretty hard to miss.
Opportunities: 1) Short EURAUD at high/right shoulder 2) Long CADJPY at low/right shoulder
I may take both of these or just load up on one, it really depends on how price develops over the next few weeks/months.
Stay tuned for more analysis and an entry plan once we get closer...
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What do you think of nzd/jpy today after its performance? You think it will just keep on climbing now?
patrick186
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@TheConnector honestly wouldn't Ben surprised if we rally in all these pairs for the next few Weeks. Harder price moves up, the harder it falls. Would make any possible entry a far bettter value
Mustapha87
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Nice analysis, this is long on a long term chart though, correct?
patrick186
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@Mustapha87 Thanks! Yep it's longer term, can use the weekly to spot the turn but the monthly is what would confirm it