The pattern is not very clear although we can think about the formation of a very sharp Falling Wedge because of the volatility of the market last week based on ECB announcement and NFP, or we have to wait for another candle to see if we are on the eve of the double bottom. Indicators such as Stoch suggest that we are at an oversold level, ie, we may face a...
The pair may face a little correction towards %50 of Fibo retracement i.e 102.0XXX, however, baring in mind FED's decision ,the tapering schedule and BoJ decision, the pair is still on the strong side for the USD. In other words, even though there may be a correction even to 101.5, on a medium term, it is long for the USDJPY pair in favor of USD unless a polical...
Descending triangle on the weekly with bearish divergence. Will be watching this closely as I believe USD is gaining in strength against most other currencies, doesn't mean it's impossible to see a break above but overall I'd much rather sell rallies on this pair.
Idea is based on a combination of elliot wave theory and median line analysis. The reasoning behind this setup can be found on the chart along with concrete target and stop loss. Good luck guys
Everyone is bullish because of the hammer on the daily chart, if so then why was the next day a down bar? They were selling at the top after squeezing the shorts and now prices will drop because all the sellers are stopped out or they went long at the top. The EU etf FXE was a "Bullish Engulfing Pattern" on high volume on the daily so most traders were bullish,...
This idea is based on a combination of median line analysis and Elliot wave theory. The two gray and blue pitchforks date respectively back to 30-04-2014 and 05-09-2013. Please zoom out to see both slopes. The reasoning behind this technical analysis is shown on the chart, along with concrete targets and stop loss. Good luck guys
The shooting star pattern did not play out and with the bullish candle today price may push its way to the down sloping trend line before reversing. Price can still move higher from here without invalidating the trade theory.
I cautioned last week about reading too much into the hammer off the 1.35 support level. When news hits the wires price can move fast but often has few participants. As we can see from two days of selling the market is still bearish on EUR/USD. Give time and price working to support in a well mannered way I think a bottom can be put in.
GBPUSD traded into resistance on Friday and reversed. It’s also possible that GBPUSD made a major high in May. 12 month ATR fell to 2.82% in May. This indicator has registered such a low level on just a few occasions ever! The last time the reading was this low was in 2007. In fact, a combination of an ATR reading this low AND a monthly key reversal has only...
Two weeks ago sellers managed to break down uptrend line that is in tact since NOvember 2013 but buyers regained control as price is above all key moing averages on Daily timeframe as well as intermidiate 4 hours timeframe. Now, it is building upper level base in front of intermidiate down trend line. Recent lower highs and lower lows tell us about weakness in...
Price Action post NFP suggest the USD/JPY still has some topside catch up to play with the US 10 yr Treasury Yield and the gaining USD Dollar Index. With Stocks still strong and carry trade back on the cards, the USD/JPY should do well from AUD/JPY and GBP/JPY buying. EUR/USD selling is still a real possibility with the USD strength from this also supporting. A...
I use the currency forecast poll and compare my own view on the market with the experts who get paid for their forecasts. In this case I have used the USDJPY. I believe that the technicals signal a move down to about 101.5. Here is what the pros say: www.fxstreet.com I also use the awesome oscillator. When we see the awesome oscillator move below the zero line,...
When one considers where price is at right now, then it is not yet possible to say with absolute certainty that NZDUSD is going lower. We are still sitting on top of a strong support line. Only when this line is broken and closed under (on 4hr chart) then I will have a bearish bias. The reasoning behind this technical analysis and concrete targets are shown on the...
Median line analysis and Fib ratio's indicate that USDCAD can not close higher than last weeks high. Price is on the verge of breaking an Andrew's (gray) pitchfork that dates back to 09-04 and thus about to resume it's downward slope (blue pitchfork ) that dates back to 31-01. Expect price to form a double bottom with the lows from 08-05 before going up again....
Friends, As you may recall, on May 15th, I highlighted a break out of a pattern within a pattern (some might call it Wolfe, others a wedge, while EW traders might call it a diagonal triangle, but it all works out the same) when price fell below its support trendline (see circled pink highlight in the chart). I inscribed a dashed blue line to highlight the...
The ECB announcement reversed the selloff in the Euro today but whether this is the beginning of a new leg up is uncertain. We need to see confirmation of the hammer candlestick on the chart and a little more follow through on the stochastic. The biggest challenge from a technical perspective facing the Euro's ability to break above 1.40 is all the congestion at...
USDJPY is a nice pair having mechanical behaviour to political and economic statements and decision. Remember when FEd decided QE1, USD shrink against the YEN, but when BoJ decided to put its QE, it was the otherway around. At the present, we do have FED's Tappering vs Boj decision to put an end to the QE. But BoJ push really hard the QE. where as FED's QE1+2+3...
Dear readers, no suprise, as forseen, interest rates have been lowered by ECB President Draghi and no QE has been announced yet although ECB state that they are working on it. 2-We have seen the price as I've forseen yesterday, i.e 4 candles before ECB decision that price my go down to 1.355 and even 1.352 which it did, and now there is a recovery towards 1.362...