We seem be coming to a very “bulls vs bears” time in the markets. We first have the bulls, who are all sure the markets have bottomed out, the EUR/USD, GBP/USD and AUD/USD have all made new lows, formed a base and are about to skyrocket back up to new or previous highs. Then we have the bears who are expect a little correction and bounce higher this week and then a final leg or two down to the 2009 lows. At this time, I am with the bears, but am open to becoming a bull at a moment’s notice!
First we have the GBP/USD who last Friday, broke 1.500 and made a new low of 1.4991. Is this a bottom, or is the Pound letting us know it broke 1.500 and has a long way down to go. The chart might show we have a long way down to go. As we broke a 1000 pip, 8 months triangle when the Pound broke 1.58, that could show another 1000 pips down which would bring us to 1.48. If it 1.48 does not hold, the next level could be the 2009 low of 1.4227, a long way down!
Similarly we have the EUR/USD , break a trendline along with the Pound, we could be in the midst of a steep and deep decline. We have 200-day Moving Average resistance at 1.2895. A break of that and we could see the November low of 1.2686 as well as the July low of 1.2000.
The Aussie is in a very similar situation. We have been grinding down slowly but surely. Is there a big drop in store? If we break 1.0100, there very well could be as we see on the daily chart. If 1.01 and parity (1.00) give way, 0.9600 might be a few weeks away.
On the OpenBook, we haven’t seen much sentiment change from last week to this week. We still have 80% buying the Pound, 59% buying the Euro, and 57% selling the AUD/USD. Whether bull or bear, we can help you find Gurus to copy! Each Premium Account holder is entitled to 1 on 1 hangouts, where our very own Account Managers can help you find a few traders to copy that suit own your views.
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