Market Forecast for 08-17-12

GBPUSD: The British Pound vs the US Dollar appears to me making its breakout to the upside; at least from a daily pattern. We will then see if it can break out of the weekly pattern or reverse its direction here (see daily Cable graph below with analysis).

If you got long on a daily breakout, consider using a 1.5595 stop loss and move stop loss to 1.5684 IF 1.5773 is reached. Move the stop to break even at a price of 1.5817 and exit 1/3 position at 1.5935 limit and move stop to 1.5740. Exit another 1/3 of the position at 1.5985 limit and move stop to 1.5885. Exit the final 1/3 @ 1.6203 limit or on a future trailing stop, whichever comes first.

daily cable graph with forecast

EURAUD: The Euro-Aussie and Euro-Cad (EURCAD) appear to be reversing to the upside. EURAUD is now comfirming that it has completed a 5th Wave low on this leg. It is breaking out of a nice little wedge we spoke of on 08/02 or 08/03. Hopefully, you had GTC orders in place from the prior recommendation.

If not…

ACTION: Consider buying intra-day pullbacks. If from the breakout level of 1.17751, or your own level, move stop to break even at 1.1834, with price targets of 1.2002 and 1.2230 or perhaps higher. See daily chart below with complete forecast.

euro-aussie daily chart

EURCAD: Appears to also have completed a 5th Wave low on this leg. It too has a declining angualr momentum of the trend-line drawn off the lows.

ACTION: Consider buying intra-day pullbacks on this pair. AND,

BUY 1.2220 stop to open, use 1.2120 stop loss, move stop to breakeven at 1.2260, exit 1/2 at 1.2306, exit the remaining 1/2 position at 1.2374 or 1.2430.

If from the breakout level of 1.17751, or your own level, move stop to break even at 1.1834, with targets of 1.2002 and 1.2230 or perhaps higher. See the daily chart below.

eurcad daily chart

USDCHF: Swissy was stoppped out at the break even point, which is why we use our protocol of moving stops to break even quickly with laser-like mathematical precision.

EURUSD: 1/3 of Euro position hit our first target making 55 pips, the rest were stopped out at break even.

NASDAQ: The LIGHT short position on ND was stopped out with a 22 point loss.

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