The time has come to delve further into what could be an 800 pip reversal pattern on the EURGBP. I’ve mentioned this potential bearish reversal formation several times over the past few months, but the pair had never been so close to capitulating as it was yesterday. Tuesday’s surge in the pound led to an intraday move of more than 200 pips for the EURGBP, the...
The AUDNZD is currently trading at levels last seen on March 3rd. That was the session that broke the 1.0765 handle, a level that had capped four separate advances since May of last year. Today’s intraday breakdown comes on the heels of more dovish than expected meeting minutes from the RBA. The relative strength of the New Zealand dollar over the past five...
Over the weekend I mentioned the 0.7608 handle on the AUDUSD. It’s an area that has directed price action since the January 24th high, and in my opinion, it’s the most obvious technical level in the currency market at the moment. I know some will disagree with that, but allow me to explain why I think so. Not only is 0.7608 a long-standing pivot, but it’s also...
The USDJPY has been off my radar for a while now. I’ve intentionally avoided the yen due to the currencies high sensitivity to risk. With tensions running high abroad, things can get rocky in a hurry. But although the safe haven status of the yen presents a challenge for the more risk-averse trader, there’s no denying that the USDJPY has some of the best...
The EURUSD once again finds itself wedged between support and resistance ahead of the weekend. It seems the additional five sessions haven’t produced much of a resolution compared to where we were last Friday. However, there is one thing we can draw from the past week’s price action. The trend line from the current 2017 low is holding as support, albeit by a...
Exactly one week ago we discussed how the EURCAD bulls were tiring following a 430 pip bearish engulfing week. When I released that commentary on April 6th, the pair had already broken channel support on an intraday basis. While writing that post, I took a short position at 1.4321, which I shared with members at the time of the entry. I also added to that...
Over the weekend I mentioned the 1.0765 handle on the AUDNZD. Before the March 3rd close above the area, it had served as resistance on several occasions since May of last year. Although buyers haven’t shown much urgency, they have managed to hold price above the 1.0765 area this week. Furthermore, if we drill down to the 4-hour chart, we have what appears to be...
The EURAUD is in the process of carving out an ascending channel on the 4-hour time frame. It’s the result of the 280 pip rally that began in the final session of March. Although the pair climbed to a high of 1.4216 yesterday, sellers were out in force above the 1.4180 handle. The selling pressure formed a 4-hour bearish pin bar, hinting at a substantial depth of...
On Friday of last week, we looked at a trend line on the EURUSD that extends from the current 2017 low. It was unclear at the time whether or not the 1.0590 area would become a factor. Buyers appear to have held the line into Friday’s close. However, yesterday’s session failed to gain any traction and closed right near the trend line at 1.0594. So even with...
The CADJPY isn’t something I trade often. But recent price action suggests the pair could be in the early stages of the next leg higher. And with the right amount of patience, the technical structure that’s been forming since mid-February could offer an attractive entry. The pattern I’m referring to is the descending channel that extends from the February 15th...
The AUDNZD came alive in February and continued its bull move through the first half of March. It was the first significant higher high since March of last year when the cross was trading at 1.1280. Since last month’s high at 1.1018, the pair has pulled back and consolidated. But the way in which buyers have held price above 1.0765 suggests a healthy form of...
After a failed attempt at a rebound this week, the EURUSD is once again trading below the 1.0635 handle. We’ve discussed this level several times recently, and it had also served as support over the last three sessions. I’ve been stalking the EURUSD since last week’s false break of 1.0825. I missed the March 29th retest of the level as new resistance and this...
On Tuesday I mentioned that the EURCAD was likely to remain soft below the 1.4380 handle. This level is the 2011 high and has been a significant influence ever since. It’s also the 50% retracement of last week’s bearish engulfing pattern. With this in mind, I was intent on waiting for a sell signal from the 1.4380 area. And given the relief rally so far this...
The GBPUSD continues to defy the odds. While other currencies such as the Euro and Australian dollar have weakened against the greenback of late, the British pound has remained firm. I reviewed the pair over the weekend and pointed out the March 29th retest of new support at 1.2410. This was the intersection of former channel resistance and a horizontal level...
Last week the EURUSD crashed through several layers of support in epic fashion. And unless you were quick enough to enter on the March 29th retest of 1.0825, there weren’t many opportunities to get short, at least not without sacrificing a favorable risk to reward. But the mad dash lower came to a halt yesterday at a support level I mentioned over the weekend....
The EURCAD retested a significant level last week. The trend line that extends from December 2015 is what triggered the recent 420 pip selloff. It’s also a level that could represent the neckline of a 2,000 pip head and shoulders pattern. I first mentioned the potential reversal pattern in mid-October of last year. It has since come up a few more times in the...
It’s no surprise that the AUDUSD challenged the confluence of support at 0.7608 yesterday. The pair looked weak during the last 48 hours of trade last week which is something I mentioned over the weekend. The 0.7608 area is the intersection of trend line support from the December 2016 low and a horizontal level that’s been a factor since the January 24th high...
Apart from the yen, I don’t trade currency crosses very often. The price action can be choppy, and the spreads can sometimes be problematic if you aren’t careful. However, if used sparingly, a cross like the EURNZD can offer opportunities where the potential reward is well worth the risk. Last week’s move may have given us one such opportunity. Within the first...