Thursday, July 11, 2013

Elliott Wave Forecast: Forex Correlations With S&P

Japanese yen is the strongest currency following the Bernanke speech yesterday while commodity currencies are the weakest. Reason for strong JPY is higher US bonds/lower yields. On the next overlay chart we can see that best market to sell is the AUDJPY while the best pairs to buy in risk-on environment is EURUSD or GBPUSD and even some EUR and GBP crosses.
Market Correlations 1h # chart here
Based on market correlations below and the S&P futures count we may see more USD selling in the near-term. S&P is showing incomplete bullish impulse with current pause in wave four from where prices may rally up in five towards 1675 today.
S&P Futures 1h # chart here

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