IanColeman

IanColeman

Although traders sold GBP/USD to the lowest levels in 23 days yesterday, buyers emerged close to the 61.8% Fibonacci retracement level of 1.2627 (from 1.2308-1.3143). Follow-through bullish momentum resulted in a Doji-Style being posted on the daily chart. This candle formation is often seen at the end of a trend and the start of a new upward bias. However, with...

IanColeman

Yes, the index is overbought in most timeframes but there is no clear indication the upward trend is coming to an end. I like 16,059-65 as a target level. This is: • the completion of a four-hour butterfly formation • the 88.6% pullback level for the BC leg in a large Support is located at 15,527.

IanColeman

Volatility continues in yen crosses, and GBP/JPY is no exception. Although we saw an initial sell-off in the cross on Friday, buyers emerged at 176.31 with strong follow-through bullish momentum resulting in net gains of nearly 300 pips. From a technical perspective, the rally has stalled close to the 78.6% pullback level of 182.39 and the previous swing high...

IanColeman

EUR/USD pushed lower after the European Central Bank raised rates by 25bps (as expected), and President Lagarde released dovish comments. From a technical perspective, EUR/USD is now close to a key support zone. Before we dive into the major currency pair, let us look at DXY (US Dollar Index), as this is still the driving force behind the negative EUR/USD move. ...

IanColeman

Mixed and volatile price action has resulted in an Expanding Wedge formation being posted. This pattern has a bias to break to the upside. On a move through the trend of lower highs at 95.80 and the measured move target is 97.67. Furthermore, we look to be forming a cypher pattern known as a Crab. Support is located at 93.75. The completion of the crab is between...

IanColeman

Although the medium-term bias is now skewed to the downside with the daily chart posting an Evening Star pattern from last week’s price action, on a shorter time scale, we have an interesting support level at 4,496. This is not only our bespoke support, but also the projected downside barrier for a cypher pattern known as a BAT. This afternoons Purchasing...

IanColeman

Although we posted a Bearish Outside candle on Thursday the 20th of July, a pattern that often indicates the end of a bullish trend and the start of a new downward bias, we look for further losses to be limited. We are assessed as being within the corrective BC leg of a large Bat formation. This bearish pattern will not be completed until $2,044. A common...

IanColeman

Before we review the price action for EUR/USD, let us look at the US Dollar index (DXY), as this has been the driving force behind the last move. DXY: the daily chart highlighted two confluence zones. One for a bullish Butterfly. One for a bullish Crab. We have seen an extension higher close to the confluence zone of the first formation. The one-hour chart would...

IanColeman

Before we review the price action for Gold, let us look at the US Dollar index (DXY), as this has been the driving force behind the last move. DXY: the daily chart highlighted two confluence zones. One for a bullish Butterfly. One for a bullish Crab. We have seen an extension higher close to the confluence zone of the first formation. The one-hour chart would...

IanColeman

Mixed and volatile price action has resulted in the index posting an Expanding Wedge pattern. Although this has an eventual bias to break to the upside, there is ample scope for further losses within this formation. Bespoke support is located at 15,879 and 15,865. A projected support level from a cypher pattern known as a Crab located at 15,860. We would look for...

IanColeman

Both single-currency baskets are trending in the opposite direction resulting in a strong sell-off for USD/CHF. The weekly chart highlights the completion of a Butterfly formation close to 0.8379. Although we are trading at oversold extremes in most time frames, corrective rallies are likely to find selling interest. The prime resistance level today is located...

IanColeman

The move higher in EUR/USD has been driven by the weaker US Dollar. Looking at the DXY (USD Index), we can clearly see an aggressive move to the downside with six consecutive days of net losses. Although Friday’s correction resulted in this sequence being broken, buyers have been unable to post significant gains with most trading occurring within the lower half...

IanColeman

After trading to the highest level in 54 days on Thursday we have seen a profit-taking correction to the downside. This negative momentum has continued in Asia with a mild gap open at $75.22 – $74.97 left from Sunday night. Gaps tend to be closed. The daily chart highlights the commodity building a cypher pattern known as a Butterfly. We have three upside...

IanColeman

Last week’s price action posted a Hammer formation on the weekly chart. This pattern is positive for short-term sentiment. Although we have seen a mild correction to the downside, we look for losses to be limited. Bespoke support is located at $70.66. The previous resistance at $70.44, now becomes support. To the upside, we have a 161.8% extension level located at...

IanColeman

The US Dollar index (DXY) looks to be moving lower within the CD of a cypher pattern known as a Bat. This will complete at 100.83. Although we are trading at oversold extremes, there is no clear indication that this downward move is ending. Bespoke resistance is located at 102.65 today. EUR/USD - the daily chart highlights the major currency pair moving higher...

IanColeman

The daily chart highlights USD/JPY trading within a corrective channel formation. Trendline resistance is located at 141.69. A break there and we have the 61.8% retracement level located at 142.51. I would look to this zone (141.69-142.51) as a substantial barrier. We have seen mixed and volatile trading with spikes highlighted in both directions. The intraday...

IanColeman

AUD/JPY completes the Bat at 97.18, trades at a critical level Continued strong upward momentum has resulted in AUDJPY trading to the highest level in 196 days. We are now assessed as being at a critical level. The daily chart highlights AUD/JPY completing a bearish Bat formation at 97.18. It should also be noted that a positive daily performance today will...

IanColeman

Dow Jones (US30) dips to find buyers, support located at 33,831 Dips continue to find buyers with follow-through bullish momentum resulting in the index trading to the highest level in 16 weeks. The daily chart highlights a bullish breakout of the descending Wedge pattern. The measured move target of 34,259 has been achieved. However, we can also note the wedge...