After the severe appreciation of the YEN we are likely to see it bounce back, especially given that there is a level of support in the form of a falling wedge.
I think that it is likely to bounce up to the structural level of resistance as indicated by the horizontal black line.
I see no fundamental reason for a prolonged period of USD strengthening against the YEN.
Crude oil has hit the resistance of a channel at a point where the market has previously met structural resistance.
Alberta fire has been completely priced in now and caused a quite unnecessary rally in prices which is over. There is fundamentally room for a strong move down in the coming days.
Could buy the DAX with the hope that it will rebound back off this support line.
Be wary of the fact that it could easily break below this support, so keep a tight stop loss or maybe even plan to short instead of buying now.
Nice area of support and resistance providing positions of entry.
Could go long now with a profit target at the resistance line in the tramline. My target would be 10310...
Possible continued strength of the USD against the GBP.
Fundamentally I can see this happening over the coming weeks. Neither countries are posting outstanding economic results, but the USD has the added bonus that the Fed are currently in a rate hiking cycle.
Very good XA:CD 1:1 ratio falling into 0.786 and 1.272 confluence.
Enter the trade at 2.02724. This lands at the support level of the tramline as indicated on the chart by the black lines.
Stop loss based on previous structure.
Technicals
This very strong trendline has been lasting for gold for some time now, and I don't expect it to stop, and it has just been touched, so this looks like a very good place to get in with a short position if you agree with this outlook (many will disagree!).
Disadvantages
The US economic data is currently not bad, but not great, and consumer spending...
Despite the recent rally in the FTSE 100, Diageo has lagged the market. However, potential buyers may come in around 1757 as this is:
1 -the base of the tram line I have drawn in. Tramlines offer great low risk entries and you can often anticipate where the price will bounce by locating a trend line and then drawing a parallel one through the lowest low like I...
