I don't see a bearish reversal chart pattern so I am treating this as a bullish continuation setup i.e. a bit like a flag-like channel. At this moment, DXY has recoiled from March low so I am taking that as a support and for the whole April correction to be a retracement. MACD paints a slight bullish divergence.
The Hong Kong Dollar is pegged to the USD. There is gathering momentum in the belief that the HKD has to de-peg from the USD. At the moment there is a major divergence in the two: I interpret this as 1) a persistent strength in HKD 2) investors do not believe the DXy gains are sustainable. When DXY reverses is when we see HKD break to the downside which HKMA has...
This is an overlay on weekly chart 26-week, 52-week and 104-week ema. Price action clearly shows reaction to these MAs despite the unusual setting. As we can see, there is no reversal chart pattern, the MAs are wide as ever and now DOW is near the all time high. This rally is going to continue until it doesn't so anyone who does not agree should stay cash and not...
"Closely watched hedge fund manager Jim Chanos says he has the best barometer for gauging where 1 percenters are putting their money, given the Federal Reserve's easy money policies that have been fueling their portfolios to record highs. During an interview Thursday on CNBC's "Squawk Box," he pointed to the stock chart of Sotheby's."
Putting the S&P and...
It is true that AUDUSD made a new high for 2014 but looking at the big picture, it is still dominated by a long trend line drawn from the top of early 2013. There is also a wedge pattern to consider. Price action obviously recoiled from the resistance. Until overhead resistances are cleared, risk proposition appears to favour short.
It may or may not be a head and shoulders. A short term retracement to 2013 September low possible. But further gains based on a head and shoulder reversal depends whether price will penetrate this resistance. If not, then price action could turn into a channel or triangle continuation down.
Unless XAGUSD breaks below 18.50, the direction is clearly long. However the key thing to do at this moment is to look for support. $20.60 was tested once last week. A re-test this week will tell us clearly whether it is good.
A steep rally calls for a substantial retracement and consolidation before new entrants find a good entry to move price to the next level. Therefore this two day correction in Gold may not be enough. That also means that this horizontal level around 1350 could be just temporary. That said, short terms traders may find opportunities while bears must watch out.
AUDUSD appears to have broken the short term down trend (zoom in to recent 6-months) and is doing a bullish reversal. It is at the resistance at this moment and once it penetrates, still has to beat a very long term trend line on top. Swing trades can take a step at a time.
The index found horizontal resistance after a test, re-test price action so it has to find support. Overlay of fib retracements using the big patterns show a congestion zone. If broken below (around 78.8), there are plenty of open spaces to fall quickly.