Currencies Update

This is because they are important as I posted earlier with a potential divergence forming and because if the market is making important moves up or down, I  want you to understand why, it can only help in future analysis and in understanding the market.

 Euro 1 min  this is the positive divergence I warned of earlier as the overnight swing to the downside is pretty much short term oversold, when I warned after that that there may be a negative divergence already forming too early in the bounce process, this is it. Remember, the same as with Equity 3C charts, a 1 min negative divergence can simply cause a correction which can be through time as a consolidation or through price as a pullback, it's too early to tell which this is, a correction, which it has corrected as 3C would imply or the start of a negative divergence that would be way too early in the process and therefore have very serious potential negative market consequences.

I'm not sure, but after noticing something was amiss last night based on my years of experience with 3C and being correct and noticing the same thing this morning, I want to be extra vigilant.

The Euro is a risk on currency.

AUD 1 min which is another risk on currency has a similar signal and consolidation/correction, so at this point only time will tell if these divergences get worse or price starts to fail or everything just moves as it should, we are definitely in that area of the market where almost anything is possible.

USD 1 min is a risk off currency, it went negative as it should after the overnight run to pullback, but then a positive formed, this confirms the signals in the EUR and AUD above, we have also had a correction here as well so the signal has done the very minimum that it was suppose to do, the question is, "Is this just an intraday signal which is rather early in the trend or is this the start of a brand new signal starting to grow?" The second option would be the one with severe market consequences.

USD 30 min is making very positive moves, this is telling me that the pullback from the finished $USD base that should s end the $USD significantly higher and will have severe consequences on the market as soon as stage 2 begins as the pullback ends, this chart tells me the pullback is ending in the $USD.

USD 4 hour this shows the second bottom of the "W" base to the left at the green arrow, then the completion of the "W" base and a "Flag-like" pullback before the "W"W base breaks out which is the same theory as a "Cup and Handle formation) which most of you are probably familiar with so the $USD is acting very bullish on a much larger basis with much more severe ,market consequences and even here after the negative divergence that started the pullback, we see positive divergences forming in the pullback area (yellow).

EUR/USD 1 min as a risk on currency, the positive divergence made sense where it ended up, the negative caused at least a correction, the question is the same as above for the Euro and $AUD.

EUR/JPY 1 min this carry pair is market positive when moving up, the negative divergence now also plays in to this scenario above.

AUD/JPY 1 min the exact same is true of this pair.