Bearish: Currently we are at 142.72 in a flag pattern inside a range. A continuation here would target the ATR Target @ 141.52 area. There is a double bottom @ 141.25-hold for that. The average daily true range (ATR) for the pair currently is 145 pips with a 180-day ATR of 119 Pips. WATCH THE USDX for more clues.

Trade of the week on GBPAUD

Enjoy - Click here

Bearish: Currently we are at 0.8520 on the top of a day chart trend. A continuation here would signal the start of a 5th wave to the downside. Target 1 is the S6 form the 3rd wave and target 2 is the double bottom @ 0.8300 area. The average daily true range (ATR) for the pair currently is 81 pips with a 180-day ATR of 60 Pips.

USDX: Bearish: We are anticipating the continuation of dollar weakness but we are very close to the bottom. Watch for the bounce. We have convergence on the 60 min chart (see inset) which is bearish. Be aware that this could change in a heartbeat and will affect the currencies below. ATR’s are much LOWER than last week. BE SMART - TRADE WITH STOPS!!!!

$EURUSD

USDX: Bullish: We are anticipating the continuation of dollar strength. We have convergence on the 60 min chart (see inset) which is bullish. Be aware that this could change in a heartbeat and will affect the currencies below. ATR’s are much higher than last week. BE SMART - TRADE WITH STOPS!!!!

$EURUSD