It’s time to get active in the market again! The Greeks finally scheduled their parliamentary vote for the new austerity and government asset sell for today. It’s a day late but maybe they just wanted more time for the EUR/USD to rise. In any case the vote should start around 0700 EDT and that means we should have the news by the start of the US session. Once this vote is out of the way the markets can turn normal again. Follow the vote live!
We don’t have much time until the Greek vote but it looks like the EUR/USD will continue to consolidate and drop in the very short term. We are positioned for a large rise after the vote. The Greek opposition leader says he has put his pride aside and is willing to vote for the new austerity. This pretty much makes the vote a sure thing. We should easily break the previous 1.4440 high and rise to at least 1.4480. View EUR/USD Elliott Wave Analysis for the chart. After this rise we are most likely to have a break down and an even harder fall in a C or 3rd wave.
The USD/CHF actually made a new low all the way down to 0.8274. I think we can expect continuation to the downside on this pair too. Set targets for the 0.8240 – 0.8250 area. This is almost down to where I expected the final all time low to be at but I will reevaluate that target if we do get a large rise following this drop.
I’m definitely glad I went long USD/JPY. It had the clearest technical pattern and is performing exactly how I would expect under normal market conditions. We have lots of room to continue the rise. Watch the pair around 81.50 if it doesn’t stop around here then expect a rise all the way to the 83.00 area.
AUD/USD, USD/CAD and NZD/USD
These pairs have had very healthy rises against the US Dollar. I think they will be prime candidates for a reversal. I’m holding out to watch other pairs such as the EUR/USD to time the reversal but once it looks ready to happen I want to be short these pairs as well as the EUR/USD. The AUD/USD has the clearest targets resting at 1.0615 and 1.0650. Timing will be key here.