Currency Trading at www.Elite-Trading-Corp.com

Over the past month, volatile risk fluctuations have settled and put the focus back on the theme of the US dollar against all its major counterparts. This is largely a reflection of the importance of growth (as the US is the largest economy in the world and is therefore expected to pace a recovery) and the greenback’s position as the world’s reserve currency. The following is our monthly correlations update for July.? As we have stated time and again, correlations between different currency pairs will inevitably shift over time

The COT Index is the percentile of the difference between net speculative positioning and net commercial positioning measured over a specific number of weeks (either 52 or 13).? A reading close to 0 suggests that a bottom is forming and a reading close to 100 suggests that a top is forming.? The readings are for the actual currency, not the currency pair.? For example, a reading of 100 on the Canadian Dollar suggests that the Canadian Dollar is close to a top (USDCAD close to a bottom). ??? Readings of 95 and higher as well as 5 and lower are in boldfaced red type to indicate potential market extremes.? For example, an increasing index is bullish until the index is extreme (near 100), at which time the risk of a reversal or pause in the trend increases.???? ? US Dollar US Dollar Index: The 13 week index has increased from 0, which indicates a bearish sentiment extreme.? Sentiment extremes occur near bottoms so expect a bottom and reversal in the USD. Implications: bottoming ? Euro EUR : The 13 week index has rolled over from 100, which indicates a turn from a sentiment extreme.? Tops tend to occur in close proximity to readings of 100.

- US Dollar Retraces Gains, Japanese Yen Up as Risk Appetite Remains on Edge - British Pound Tumbles Amidst Speculation BOE Will Expand UK Quantitative Easing Program - Canadian Dollar to Face Ivey PMI on Tuesday - Swiss Franc Remains Range-Bound vs. Euro, SNB Intervention Risk Looms Australian Dollar Rebounds Ahead of Key Reserve Bank of Australian (RBA) Rate Decision The Australian dollar staged a solid comeback through the second half of the US trading session as the currency retraced most, if not all, of its losses from the European trading session against the US dollar and Japanese yen

The NZDUSD decline from .6550 is in 5 waves and suggests that the trend has turned down.? A corrective advance is underway now and price is approaching the 50% retracement of the 5 wave decline, which is at .6395.? The 61.8% is at .6430.? Expect resistance at one of these levels.? Hourly RSI is above 70 right now, so the rally may be stretched.??