LastI posted a new video analysis where I talked about the euro versus the Canadian dollar based on recent developments on the euro/U.S. dollar (EUR/USD) currency pair, the USD/CAD currency pair and crude oil. I came out with a conclusion that bounce can be seen on EUR/CAD, which can be even impulsive so it can take us much higher in days ahead.
The British pound/Japanese yen (GBP/JPY) currency pair may be trading at the start of a bigger bearish cycle, with the first wave one completed. The current complex rise from latest low (144.98) can be regarded as a temporary pause within the downtrend, labeled as wave two, which can see possible resistance and a new bearish reversal around the 150.92-152.30 region.
Stocks turned sharply lower in the last 12 hours based on 10-year U.S. T-Notes and the correlation with the E-mini S&P 500. Key for that move down was a breakout of an ending diagonal seen on the 10-year, which was a confirmation for a turn into a risk-off mode for stocks.
The S&P 500 and its daily time frame, where we see an incomplete higher degree impulse that is in progress since January of 2016. In the German DAX, where we also see price to be unfolding a bigger, bullish impulse (the DAX and the S&P 500 trade in positive correlations).
We have seen the U.S. dollar moving to the upside in the last 12 hours, following the hawkish tone of the FOMC minutes that send the U.S. 10-year Treasury yields rising to 3%. We see 10-year U.S. T-Note prices still in an ending diagonal.