Guide to Investing

Elliott wave patterns are often most clear near their terminus. Such is the case with the EURAUD right now. The current pattern offers a trade and a read on risk trends.

Though fundamental troubles are more engrained and volatility still exceptionally high; the US dollar is facing an uneasy period of congestion over the coming weeks. The possibility of QE3 (or something like it) in a few weeks time is effective enough to stall the dollar and background speculative drives.

The Dow Jones FXCM Dollar Index (Ticker: USDollar) was markedly higher at the close of trade in New York as it approaches key technical resistance ahead of crucial data tomorrow and Friday.

Manufacturing in the world’s largest economy is expected to contract in August, and the development could heighten speculation further easing as the Fed aims to balance the risks for the region.

The greenback held a narrow range on Wednesday and the reserve currency may continue to consolidate in the days ahead as the economic docket is expected to reinforce a weakened outlook for future growth.

The swissie tops today’s performance chart against the greenback after the SNB omitted comments about the franc’s rapid appreciation, easing concerns of further intervention from the central bank.

Forex options and futures sentiment suggests that the Australian and New Zealand Dollar have further room to run against the US Dollar (ticker: USDOLLAR) as traders buy into longer-term trends.