Crude Oil: Bearish For $82.50

We suspect that oil prices will make a new low in this week, after only three waves of recovery from 84.00 to 90 area. Market also made a sharp bearish reversal towards the support channel line which supports the idea that recovery was corrective and that wave B) is finished. As such, traders should be aware of a wave C) extensions down to 82.50 area in coming days. However, this wave C) is part of wave (E) which is final leg of a wave B triangle, so after that new low we will keep an eye on evidences of a bullish price action

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Forex News: Japan CPI Confirms Deflation

The Japanese yen rallied slightly higher versus the U.S. dollar as consumer price figures in Japan came across the wires showing across the board deflationary pressure in November. The National CPI data showed a -0.2 percent decline on a yearly basis and -0.1 percent decline when excluding fresh food and -0.5 percent decline when excluding food and energy from the National CPI reading.
The final industrial production figures slowed by -5.8 percent in November on an annual basis underscoring the flagging CPI figures.
On a more positive note, overall household spending grew by 0.2 percent and retail trade also picked-up pace by 1.3 percent in November, year-over-year. The unemployment rate improved to 4.1 percent from 4.2 percent in November.
Forex traders have been aggressively selling the yen as new Prime Minister Shinzo Abe has called to end deflation and aggressively monetize the countries’ debt effectively debasing the low yielding currency. The yen’s strength following the data release today is likely a retracement from the strong selling efforts by FX participants

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EUR/USD: Be Ready For A Correction

EUR/USD reversed sharply lower yesterday during the US trading hours and it seems that temporary top has been established on this pair around 1.3300 area. The fact is that price reversed impulsively lower through the impulsive channel, so we think that a deeper corrective and Christmas sideways price action will begin.

With that said, traders should not expect too much from this market as Christmas time approaches. Notice that for the past three years, EUR/USD always fell into a period of consolidation, so maybe we have a very slow days ahead of us

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