Wednesday, October 14, 2009

EURUSD; USDJPY Daily Technicals

Today I received a call from my mother telling me the Dow broke 10000. If she's getting all excited about this from what she heard on the news it sounds like a media contrarian signal to me. It may retrace, I'm thinking it could fall and close the gap first...however fundamentally and technically if it doesn't fall back hard in the next few days, I see the dollar going to pre-crisis levels and above.
EURUSD
Momentum seems to be putting itself into an possible bearish divergence. Today's candle jumped over the resistance of September 22nd 2008 at 1.4874 and it is now at 1.4949 I now consider the dollar's decent unstoppable...now let's look at the daily JPY
USDJPY
I've drawn out the bullish convergence on momentum. If it breaks the topside channel I see it going back up to July 13, 2009 support but now resistance at 91.72. Other wise I see it drop to January 21, 2009's 87.13.

I also saw today's Boston Metro on the T ride to classes. The headline read: "More Debt, Less Work for Grads" I certainly hope that is a contrarian signal!!!

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