Usually I show you a thorough and detailed article on 1 or 2 currency pairs, but I am going to do it a tad differently today…..
Instead we are going to focus on many currency pairs and only highlight the most important element.
Let me know if you enjoyed this analysis or if you rather prefer the full blown top down analysis I normally display on any of the currency pairs? Thanks!
Before we start, let me tell you that you can find analysis on EURUSD by clicking on these links:
After XAUUSD’s unforgettable and expected crash of mid April (see e.g. this 1 article predicting that), the Golden pair has slowed down to a grind.
After the enormous down days we saw XAUUSD do the following:
- Bottom out at 1320
- Make a good retracement to the upside to 1490
- Retest the bottom but a failure to break it
- Bouncing off the 1320 bottom at the 886 Fib at 1340
A break of either of these two lines on the chart could be interesting.
1) Upside break could see this pair move to the 1490 top and the 1529 target. However, be aware that this is a counter trend trade
2) Downside break could see this pair back to the 1320 bottom and a break would mean a continuation of the down trend (strong support at 1250)
The EURCAD is showing lots of strength. The currency pair has managed to box its way out of 3 downward trend lines. The first obstacles were the 2 dark red trend lines.
More recently the EURCAD broke out of a shallower sloping trend line yet again (red line).
A break of the top (purple line) would mean a continuation of the uptrend and a typical break / pullback to broken trend line / continuation setup.
For those of you who have read the “million usd” strategy, you know what this means… read here the article so that you have an idea how I am going to trade this setup with all the details for entries, stop losses, and targets. The 2 main targets have also been highlighted in blue.
Are you planning to take this trade? Please let me know down below what your thoughts are ok? Thanks!
The AUD weakness has been prevalent across the board… even against the NZD.
Currently the AUDNZD looks like it is building a decent sized wedge.
1) A break of this wedge to the downside would be a sweet down trend continuation.
2) A break to upside could be interesting, but very short lived as there are major resistance levels quite close to it.
Last but not least the EURJPY!
The EURJPY upside topped out at around 134 mi May… and it has been correcting ever since.
In terms of pip size the retracement was large and over 800 pips. But in relationship to the upside which saw the EJ fly up from 94 to 134, the move down can still be considered a pullback on the weekly chart.
Currently the currency has done this:
1) Big daily pinbar off the 126 support level
2) Bearish engulfing twins
The candle stick formations are showing us different directions… but if we use trend lines, I think the picture becomes more clear.
1) Nice bounce off the support trend line (green)
2) A break of the down trend line (red) would indicate that the EJ is back in the uptrend on the daily chart (purple)
The break of the purple line I think could be an awesome trade. I am keeping my eye on it! Just be careful of the top and resistance level (dark red line)
Thank you for reading this article.
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Good Trading! Chris Svorcik
Latest posts by Chris Svorcik (see all)
- USDJPY Triangle at Crucial Break and USDCAD at Major Bounce - August 27, 2014
- Analysis of the AUDUSD and Where It is Going - August 26, 2014
- Weekly FX Overview with Crucial Breakout Pairs - August 25, 2014
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