**This analysis is purely technical.**
Reasons that makes me believe that the probability of an upcoming bearish movement is bigger than bullish action:
1) On the daily chart, we saw new highs but there is a huge divergence with RSI that shows lower highs
2) Price broke the 20-period SMA
3) Price broke the 23.6 Fib level (as shown on the D1 chart)
4) On the H1...
In terms of analysis, I think the charts speak for themselves.
The pair was in a general downtrend (see weekly chart) and we recently saw a pullback into previous price structure.
The pullback did not manage to gain momentum and it actually stopped at the 38.2 fib retracement (highlighted in daily chart).
On the 4H chart, we can clearly see a pennant in...
The beautiful head-and-shoulders formation effectively led to a downtrend and it seems like a good time to hop on. Risk/reward is very good considering that this pair has a lot of downside potential. Although I do not want to go into the details regarding fundamentals as I want to keep this post short, I’ll say that they are favorable to this trade on a mid-term...
I hate messy and overloaded charts, but this one seems too perfect.
First off, we have been in an ascending triangle since February.
SMA(50) and SMA(100) are meeting each other and price is also at the same place. We could see come institutional buying because of that. Price is also rebounding off of Ichimoku Cloud, another sign of confluence.
We still haven't...
Although it is stated that I have a long bias, it is solely due to probabilities because this pair could get destroyed in the next weeks.
Higher lows on RSI seems to confirm that the pair wants to go up again (continuing 2013 uptrend) and that the consolidation we've been witnessing since the beginning of 2014 was only a pause in the longer-term trend.
If,...
1) 96.00 tested and rejected
2) Running into 1.272 extension (see chart for scale)
3) Near resistance set in October
4) Gravestone-doji
5) Good Risk/reward
Here are the factors that support my thesis that EUR/CHF should be shorted now.
1) 38.2 Fib Level was hit
2) Major structure level was hit
3) Gravestone Doji formed
4) Risk/Reward is good
L.F.
This chart was somewhat disturbing the first time I saw it (around a week ago).
It is the difference between the S&P 500 (SPY) and the Russell 2000 (IWM), essentially the gap between mid-cap to large-cap and small-cap stocks. Why is this chart so relevant? Because small-caps are always the first to fall in times of major correction or bear market.
In 2007, we...
Yen crosses seem to over-bought all across the FX Market in general. GBP/JPY is no exception and it offers a nice trade opportunity that could get us in and out within a few days.
We are in fact at a major resistance level, with a descending trendline dating from December 2013 supporting that call. Since I haven't seen any doji-like candle on the daily chart, I...
I don't think I have to say a lot about this chart. We are currently in a dip and it presents a great buying opportunity on NZD/USD. With NFP coming friday that I expect to be good, we might see some kind of shake-out and potentially some some sort of pinbar in the next few days. If that is the case, then absolutely go long!
I'm not in the position yet.
L.F.
I don't highlight anything new on these charts, but it really looks like USD/CAD has got some upside. With NFP coming friday and Canada's employment data, we're in for a great show. I haven't made my decision on whether I enter this market before NFP or not (I'll comment if I do).
Only technical risk associated with this trade: RSI(14) on the daily does not show...
I won't be taking any trade on EUR before ECB but the announcement that will be made and the subsequent reaction will be interesting for this chart. After what seems to me like a major top (March 18th-ish) confirmed by RSI(14) divergence, EUR/USD is rallying up again.
I comes at previous price structure that was major.
Thus, if the ECB conference and decision...
As you can see on the chart, EUR/GBP is probably looking to go up during the next few weeks (or perhaps months). There is major resistance in the 0.8400 however. Although this trade looks good on a technical level, I'm still looking for a fundamental catalyst to really set the two currencies apart.
