The Emerging Market ETF has just tagged a huge area of confluence this week shown on the monthly chart. This should be of interest to anyone trading US Equities or the EM pairs such as USD/MXN. Its worth noting that on the three previous occasions this long term trendline was touched a correction occurred in US Equities as highlighted on the chart, once minor and twice the start of something more significant.
The Yen also appears to have further to strengthen with key levels broken in NZD/JPY and AUD/JPY as well as the potential false channel break on the USD/JPY
I'm of the opinion that the decline this week in Equities was just the beginning of a larger correction and the rebound today was a gift to top up on shorts. Perma Bulls are starting to believe the buy the dip mentality is fail proof, yet again seeking new all time highs and alot of sellers losing the will to live which normally suggests a move maybe just around the corner.
Good luck all
Any thoughts or ideas are appreciated
The Yen also appears to have further to strengthen with key levels broken in NZD/JPY and AUD/JPY as well as the potential false channel break on the USD/JPY
I'm of the opinion that the decline this week in Equities was just the beginning of a larger correction and the rebound today was a gift to top up on shorts. Perma Bulls are starting to believe the buy the dip mentality is fail proof, yet again seeking new all time highs and alot of sellers losing the will to live which normally suggests a move maybe just around the corner.
Good luck all
Any thoughts or ideas are appreciated