The EURUSD 4-hr chart is showing a possible Butterfly setting up, which depends on if we get a move down near 1.3740 and subsequent bounce. Additional TL support is also seen close by, which gives me more confidence in the trade. The 1.xx50 levels always provide support, so it wouldn't be a bad idea to go long prior to hitting the 23% Fib, just in case price...
Looking at a daily chart of AUDJPY, there is a confluence of bullish factors at 90 that make that level look good for a long:
1. The 23.6% Fib at 89.98 is key support for the harmonic pattern to play out.
2. The 61.8% retracement of the February lows/highs comes in at 90.04.
The risk/reward at that level is very much in favor of longs, and is something to...
There are some interesting setups currently forming in the yen crosses, specifically the USD, EUR, AUD, and NZD. These are all are showing bullish wedges on their 4-hr charts and are nearing their apexes, so watch for breaks soon.
*Oops, I thought I was publishing a multi-chart view. Since I messed that up, it takes away a major point of this post. My apologies.
After nine consecutive weeks of gains, USDJPY is seeing some necessary downward price action on the back of profit taking and risk-off sentiment in global markets. How long will this sell-off continue, and where is the best place to go long? What I'm watching is the big 100 level on a weekly chart. There is a confluence of Fib support (50% of the 2007 high/2011...
There are a few factors I'm watching here:
A. The 23.6% Fib support at 6.43792, which coincides with
B. TL support, which also happens to be
C. A key piece of the Gartley being formed
Price is nearing the apex of the triangle its currently trading in, and risk for longs is clearly defined at these levels: below that trendline on a daily close, and price could...
The US Dollar index is currently making a nice Gartley pattern going into tomorrow's NFP data. Strong resistance is seen at the 81.50 level, which capped prices in November. Above that level, the 127% extension at 82 (technically 81.97) is where this Gartley pattern would complete, signaling to go short.
The US dollar index is currently testing important support around 79.90, which coincides with multiple Fib levels, including a 61.8%. If support holds here, price will likely be playing out a Gartley pattern, with a target of 81.93.
USDCHF has fallen to an area of support on the weekly chart, the 38% retracement of the 2011 lows/2012 highs, that could provide a bounce higher for the pair. Risk is well-defined: the channel bottom coincides with the .88 level, which is ~70 pips away, and should provide strong support in the case of a spike lower. Adding to the possibility of a reversal is that...
Sometimes the simplest setups are the best setups. CADJPY has been stuck within a range since early June, with price bouncing between 92 and 97.50, but that could change very soon. Currently, price is hovering a few pips above 97, and you can be assured that many sell stops are clustered above the range highs. Considering the weakness we're seeing in all JPY...
The 4-hr chart of NZDUSD looks very bullish after this morning. The neckline of an inverse Head & Shoulders was broken, without much resistance, and the pair is continuing its climb higher. Main resistance now is the trendline coming in around .83, and support should be seen at the broken neckline at .8260. The measured move of this setup is up near .8435,...
Nothing too complicated here. The AUDUSD 1-hr chart currently has a very nice harmonic setup playing out, with a target of .9216 to go short. With the RBA rate decision tonight (10:30 ET), as well as Australian retail sales data (7:30 ET), this setup should either receive a nice boost or become invalidated.
Key support for the pair is seen at .9050.
It's not the most exciting pair to trade, but soon it should provide a great opportunity to go long. The resistance at 1.0510 is the completion of a bearish Gartley formation, which held multiple tests to try and break higher, and price is now hovering near support at 1.0460.
There are four areas to watch to establish/add long positions if we see continued USD...
Depending on what happens with the FOMC decision and its effect on USDJPY and equities, this pair could get a boost higher to important resistance near 94.50, where I will be watching for a turn lower. If this setup plays out, short at 94.50 and then long at 92.15 is how I will want to play this.
The US Dollar index is setting up a possible Inverse H&S, which if confirmed would target 81.60. Current resistance is near 80.62, and is strong, which we would need to see a close above for confirmation of this move. Notice that RSI is currently diverging, but there is trendline support near 80.30. Until we see confirmation that this setup is in play, this is...
