This Forex business is a serious one indeed. Isn’t it funny how breaking your rules ‘just this once’ can cause things to spiral out of control? Not funny at all. We as traders have the odds stacked against us as it is. Our rules are the only thing that keeps us grounded and prevents us floundering. Read more »
Eurgbp Possibilities
Eurgbp made an impressive rally after bouncing off of a set of weekly double bottoms. The weekly chart below shows the pair currently trading against a down-sloping trendline. The daily chart, however, shows the pair supported above a major down trendline. A daily bearish close below this trendline (.8740) is likely to see a further run towards .8650s. At this point, if the daily up trendline gets breached, another level of support that might be targeted is .8500. These support areas are marked on the charts by red horizontal lines. Read more »
Gbpaud Technical Analysis
Gbpaud has undoubtedly been the pair to watch lately. It has been hovering around weekly support at 1.6270s for a while; from there it rallied above an inner trendline on the 4-hour chart, setting the stage for the rapid burst upwards following the RBA rate announcement. Currently, the pair is trading below some resistance at 1.6560. A 4-hour close below this resistance could see a move down towards 1.6465 for a retest of the now broken outer trendline. If it closes above, a further rally is likely to move it towards the weekly resistance at 1.6730s. Please see charts below: Read more »
A Technical Analysis & Trading Opportunity
We traded the 4-hour range on Eurnzd for quite a bit before a bearish breakout whish saw the pair testing 1.7360. Now, 700+ pips later, the entire down move has been reversed. Price closed back inside of the range, and now has moved back for what is potentially, a retest of the range support before continuing up. The recent up trendline also offers support at this level. I am looking to position long here, for a move back up towards the 1.8200 resistance. Read more »
Professional market manipulators!
WOW, what happened today huh? Well, if I was "Goldie" (Goldman Sachs) and I knew that I was going to release a report like they did today ( and they knew) I would work may way in to a rather large dollar short position across the board (my guess is they did this 24 to 48 hours in advance). For no sooner did they time that just right, but the market shot up like crazy against the dollar. Euro, pound, AUD. simply amazing. It is my belief that these people are TRADERS (gasp!) and that they have unusual insights into the markets because of their rather large team of the "brightest and best" in the world. Not to mention their deep pockets. And, as traders, with a STRATEGY, they executed it flawlessly! checking out the following chart we can see that there WAS a nice failure at the neckline of the 4 hour H&S (inverted) setup. Prompting some to enter fresh shorts with stops just above. Read more »
Eurusd Bears Mean Business
The scenario I am about to lay out on the Eurusd will be controversial. Regardless, I am merely describing what I see playing out at the moment. I am aware of the fact that the pair is currently testing weekly support, but I am not looking for it to go long. The daily chart shows the right shoulder of a possible bearish reversal. The complication is that weekly support lies just below that level, and the 4-hour timeframe is currently holding above an up-sloping support line. In spite of this significant, note the price action on the daily chart below. Two days ago, the daily candle closed in a very bearish manner right in the support zone; and yesterday’s candle simply indicates indecision. Read more »
Are You Bull Or Bear Sequel: ‘I Want To Be A Bear!’
I am posting this article as a follow-up to the one posted here about two weeks ago on the Gbpcad currency pair. A weekly chart was used to indicate a bullish range breakout, and the subsequent resistance that kept it from following though on the breakout. Since, then there has been quite a bit of congestion, which was followed by a breakdown through a daily and 4hr up sloping trendline. This down move, however, stopped short at the 1.5900 support, and bounced back towards the broken trendline. This is where I see a potential trading opportunity. See chart below for reference: Read more »
Gbpaud: An Extraordinary Opportunity
The weekly chart of Gbpaud shows a potential bullish reversal setting up. The potential right shoulder is currently testing the 61.8% Fibonacci retracement level, at 1.6950s. The Fibonacci extension tool shows the 1.618% extension at 1.9330 (shown by the red horizontal line on the chart below). This is a weekly setup, and as you can imagine, it will take quite a while to set up, and then reach target. However, it can offer very good trading opportunities on the smaller timeframes. This down move appears as a range breakout on the 4hr chart, and as a downtrend on the hourly and lower. Read more »
A Technical Analysis & Trading Opportunity
Eurcad currently has a possible buying opportunity on the 4hr chart. The weekly timeframe has been trading in a range, and for the past five weeks, has been respecting the 1.3265 support. The 4hr chart below shows a break above an inner trendline, and what appears to be an attempt at a retest. The .618% Fibonacci retracement level of the 1.3150/1.3379 swing comes in at 1.3237, which is also approximately where the trendline would offer support as it moves down. There is also the left shoulder of a possible inverse head and shoulder formation at the same level. Read more »
200 Pips Up For Grabs!: Technical Analysis & Trade Setup
Gbpaud has been confined to a 4-hour trading range for the past three weeks. During this time it has offered some very profitable trading opportunities. We sold the range resistance in the trading room and rode it down from 1.7515 to 1.7340. Currently, the pair is again close to the range support, which is at 1.7280. You will note that on the chart below, there is a rising trendline that extends from the 1.6215 low. This line cuts across the range, and so is likely to offer support at 50 pips above the range support. Although it could bounce and turn around at this level, I will not buy here, because I would be risking too much, since my stop loss will go below the actual range. Read more »