I believe that there is a long term opportunity unfolding in the Emerging Markets, which we began discussing on July 5th.
Emerging Markets, EEM, have formed a swing low and closed above the declining trend line to confirm that day 22 hosted the daily cycle low. And with EEM being in its timing band for an intermediate and yearly cycle low, the new daily cycle has good odds of triggering both the new weekly and new yearly cycle.
EEM has been in a multi year consolidation for over 10 years. It recently broke out of consolidation in December, peaked in January, and then began its yearly cycle decline. As previously mentioned, EEM is in its timing band for a YCL. EEM is rallying off of support from the rising 20 month MA. The decline into the YCL has caused EEM to back test the break out for the multi year consolidation. The formation of a monthly swing low will indicate that EEM has begun a new yearly cycle. And that is has also successfully backtested the multi year consolidation.
The Nasdaq recently broke out of is multi year consolidation and backtested its resistance level.
After the Nasdaq backtested its resistance level it was off to the races ...
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.