Max McKegg

35th Year as a FX Professional

Disciplined application of well-defined Chart structures is the essence of my trading approach

Wednesday – July 8th

Today’s Coverage:
AUD/NZD, EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD

EUR/USD - Corrective consolidation persists

The Euro’s corrective Triangle consolidation persists, requiring a sustained break above Key 1.1345
resistance to signal completion; then heralding the resumption of Euro’s recovery (from 1.0640 March
low) toward Target of 1.1490/1.1515.

Support Today lies at 1.1265/1.1240, 1.1215 max.

Daily EUR / USD

Price
USD
1.175
1.17
( March 9th peak ) 1.165
1.16
1.1490 1.155
1.15
III
1.145
1.14
1.1380 Target Met
1.135
1.13
1.125
IV 1.12
1.115
1.11
I
1.105
1.1
1.095
1.09
1.085
1.08
1.075
II 1.07
1.065
1.06
1.0640
1.055
( March 23rd low ) 1.05
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AUD/NZD - Downside potential persists

Since completing its Bullish 5-Wave Trend advance from the 0.9995 March low to this month’s peak of
1.0880, AUD/NZD has already sold-off to my first mathematical retracement Target (refer Daily Chart
below).

However, there remains potential for the completion of a Bearish 2-month Head & Shoulders structure;
with sustained break below 1.0580 support heralding the next (and final) leg of corrective weakness,
yielding sell-off toward the low/mid 1.0300’s, 1.0270 max. over coming days/weeks.

In last week’s Update I expected resistance at 1.0640 – 1.0670 to contain (which it has) and now I am
looking for sell-off below 1.0580 support toward 1.0500/1.0485 over coming days.

Daily AUD / NZD

Price
5/ NZD

H 1.1
1.095
1.0880
3/ 1.09

V 1.085

S S 1.08
1.075
1.07
III 1.065
1.06
b
1.055
4/
1.05
IV 1.045
1.04
I still potential to reach the low/mid 1.0300's
1/ 1.035
1.03
a 1.025
1.02
II 1.015
1.01
2/
1.005

1
.9995 ( March 18th low ) 0.995

c 0.99

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Weekly AUD / NZD

Price
NZD
1.3795
1.38
2/
1.35
1.3275

1.32

1.29

1.26

1.23
1.2320
1.2
1/ B
4/ 1.17
1.1430
1.1300
1.14
developing Bullish Falling Wedge
1.11

1.08

1.05

1.0490
1.02
3/
0.99
1.0020 .9995
5/ C 0.96

A ( March 18th low ) 0.93

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USD/JPY - Short term risk has switched to the Upside

The Dollar’s decline from last Wednesday’s 108.15 peak displays a 3-Wave corrective structure (see my
Hourly Chart below and whilst Today finding support at 107.50/107.25, yields rally above 107.80
resistance to retest 108.15, enroute to the mid 108.00’s.

Hourly USD / JPY

Price
/USD
108.15
108.2

108
b
107.8

107.6

S 107.4
a
107.2
S 107.25
c
107
H
106.8

106.6

106.4

106.2

106.10 106

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GBP/USD - Short term recovery potential persists

Sterling’s recovery from its 1.2250 June 29th low persists (see my Hourly Chart below).

Support Today lies at 1.2530/1.2500 to yield another rally above 1.2570/2590 resistance onto
1.2615 (then 1.2645/2675).

Hourly GBP / USD

Price
USD
Wave c = Wave a = 1.2720 1.272

1.268

1.264
Wave c = 61.8% of Wave a = 1.2615

1.26
a
1.256
1.2530

1.252

1.248

1.244
1.2440
1.24
b

1.236

1.232

1.228

1.224
1.2250
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AUD/USD - Rally has stalled

Typically, upon completion of a Triangle consolidation pattern, the market will move quite swiftly.

The Ozzy’s rally has stalled and yesterday formed a short term Reversal Day. Therefore unless
Today able to clear .6980/.7000 resistance (for a retest of .7060) risks sell-off to .6900 support;
once broken yielding decline toward .6835.

Daily AUD / USD

Price
USD
0.73

0.72

0.71

0.7
0.69

0.68

0.67

0.66

0.65

0.64

0.63

0.62

0.61

0.6
0.59

0.58

0.57

0.56

0.55
.5505
0.54
( March 19th low ) 0.53
0.52
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NZD/USD - Upside potential persists

The Kiwi has almost reached its (minimum) Wedge Target of .6585 But there remains potential for
recovery to extend further.

Support Today lies at .6520 & .6500 (.6460 max) to extend rally above .6585 resistance onto .6625
then .6660 (with potential to reach the mid/late .6700’s over coming days).

Daily NZD / USD

Price
USD
0.7
0.69

0.68

0.67
.6585
0.66

0.65

0.64

.6370 0.63
.6175
0.62

S 0.61

0.6

0.59
.5920
0.58
S
0.57

0.56

0.55

.5470 0.54

H 0.53

( March 19th low ) 0.52

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Disclaimer: Max McKegg accepts no liability whatsoever for any loss or damage that may result,
directly or indirectly, from any forecast or opinion, information or omission, whether
negligent or otherwise, within this report.