Charts I’m Watching: Aug 2, 2013

The dollar: backtesting a broken falling wedge, or setting up a fall from a rising wedge?  Tough call…

Likewise for the USDJPY, which has tagged a .786, but hasn’t reached channel resistance just yet.  The .886 at 100.12 would perfectly backtest the neckline of the two H&S Patterns in play (red.)

Which would put it within .30 of breaking out of the falling white channel and a shot at avoiding completing the much bigger H&S patterns.

The EURUSD already tagged its .886 at the top of the red channel, so should start selling off as soon as it’s done backtesting its rising wedge.

Looks like equities have a little downside in them this morning before resuming the climb.  I’ll go short on the opening, but will look for a reversal around 1703.75.  If that doesn’t hold, 1698-1702 is the next support.

UPDATE:  9:50 AM

SPX just reached the purple midline, so I’ll try going long here at 1700.78.  I’ll give it a little leeway on the stops — 1698ish.

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