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Sunday FX Update

by The MoleJuly 24, 2011

In my Friday post I told my subs to watch the AUD/JPY on Sunday afternoon with possible implications on the spoos opening later this evening:

Admittedly a lot can happen between now and Monday 9:00am EDT, but clearly we have NLBL that has thus far proven to be resistant. If you are short equities right now then that NLBL could serve you well as a hedge threshold.

Based on what I’m hearing out of Europe this weekend I devote this post to Germany – soon to be renamed the EU Charity Fund:

Of course I do have a few more charts for the subs:

Let’s zoom out first. About a month ago I mused about a possible repeat of the summer 2008 action over in the Dollar index. And until we see 73 breached that possibility remains – so far the pattern seems eerily similar. In order to increase the odds for a long term bearish case what we want to see toward the end of the summer is a steady push higher on this chart. In other words – Mr. Bucky needs to complete its flooring process and finally get out of the gate.

More short term cable may be able to overcome its 25-day MA and push toward 1.66. Until we clear the 1.64 mark it’s possible we’ll see a retest of the 1.63 mark, which should now serve as support.

Very short term on the hourly 1.639 represents the current NLBL and ideally should hold and provide a base for a push toward 1.64.

EUR/JPY is moving fast and the hourly chart already looks a bit differently by the time you read this. The daily 112.92 NLBL thus far has been rejected and on the hourly we’re bumping against the 25-MA. Maybe a possible short opportunity which would be confirmed by a drop below 112.4.

That’s all I got for now – see you guys on the other side.

Cheers,

Mole


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.