I'm convinced that actions we've taken in the first six months have helped stop our economic freefall….We're losing jobs at half the rate we were at the beginning of this year...
Well, so much for surprises! However, good news is still good news and the recent slowing in job losses is undeniable. I'm sure there will be a great deal of hoopla through various media outlets about how the US economy is on track and all signs point to a firm recovery through the rest of this year. Let me say now that this does NOT necessarily mean the USD will be rallying, especially for the upcoming week. It is too late to place any trades today, as the the train has officially left the station. But next week will provide plenty of opportunities. Let's take a look.
My main "indicator pair," the EUR/GBP (chart above) has been basing, or flagging, for months. Since the preceding direction is upward, we have to assume that since the pair has not broken down, it is setting up for a move higher; therefore, I will be favoring a long EUR, short GBP bias.
The EUR/USD (chart below) has been rallying basically since March 2009 and I will look for an opportunity to buy the pair next week, once I see some kind of reversal pattern from its most recent short-term dip.
The same concept will be applied to the EUR/JPY, only I expect this pair to rally more so if the equity markets rally as well.
The same concept will be applied to the EUR/JPY, only I expect this pair to rally more so if the equity markets rally as well.
I will also find a spot to possibly go short the GBP/JPY, in case the equity markets take a hit. This pair seems to be a proper target to fall, even if only a corrective dip.
I will follow up with more details and precise trade levels next week.
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