Shortened Holiday Week is Over. What’s Next?

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Today we will be covering...

  • Today, we will examine GBPAUD (British Pound / Australian Dollar). On Sunday, we will finish the forex week with USDJPY. Of course, we will post forex updates when appropriate.

  • Today, the stock market closes early, and it will be closed on Friday. 

GBPAUD Cycles

  • I generally expect a weakness in EUR and GBP. The latter will likely be weaker.

  • The weekly chart of GBPAUD indicates that GBP is positioned to lose against AUD.

  • RSI is overbought, negatively diverging, and curling down.

  • The cycle composite comprising the two dominant cycles on the weekly chart favors a prolonged weakness.

  • In the short term, it is oversold on the hourly chart, and it may bounce, though. We will examine it more in the Pro newsletter.

Sentiment & Technical Analysis

  • The CNN’s Fear & Greed Index declined slightly from 65 to 63.

  • The 5-day Put/Call ratio is getting to extremely low values, a yellow/red flag.

BraVoCycles on X

  • Consider following me on X (former Twitter) in addition to the newsletter, as I often post valuable information there in real time between the newsletters.

    • Another long-term yellow/red flag regarding the stock market valuation. Again, this is not a short-term signal.

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