Although looking a bit choppy, the bigger picture on Gold still shows an uptrend with higher highs and higher lows. Price has touched the floor at ~1180 and rejected the trend line for a third time giving a bullish engulfing and doji bar yesterday, together with rejecting the 0.786 Fibonacci level and closing above it. Stochastic and RSI are in convergence and are...
Technicals: - potential high test bar (rejection pin bar) - retest of resistance at 0.7550 - retest/rejection of 50 and 20 ema - 50% Fibonacci retracement rejection - Convergence on Stochastic and RSI entry - below low stop - above high target - previous swing low or lower
Confluence of factors supporting long trade: - recent uptrend (HHs and HLs); - bullish low test close; - 20 mean bounce/rejection; - support at ~0.7800; - 0.618 Fibonacci level rejection and close above; and - RSI and Stochastic convergence. entry - above today's high stop loss - below today's low target - most recent swing high and above
A successive cycle imitating the 3 drives pattern is in formation on the EUR/GBP 4 hour timeframe. Stochastic divergence, usually leading to a deeper pull back in a trend, has given the following confluence for the resumption of an in trend phase to the downside with price pulling back into: resistance at 0.7290; 50 and 20 ema; 0.618 Fibonacci level (very...
Case for entry short: bearish doji bar close; retest/rejection of resistance at ~1.5025; and 0.618 Fibonacci level rejection and close below entry - below doji close stop - above doji close target - ~1.4830 (weekly support level and also 1.272 Fibonacci extension level)
USD/JPY broke above the December 2014 high and closed well below. Recent price action appears to be trending after a consolidation breakout , near 120.40-120.65 , to the upside and break above , also, above the falling trend line drawn over previous highs . A possible retest of this trend line which lies in confluence with the 20 ema , a previous ...
AUD/JPY has broken previous resistance at ~92.14 and is returning back to test it in a very shallow pullback with also a confirmed bounce off of the 0.382 Fibonacci level . Currently, an hourly inside bar is in development indicative of a possibly stronger downward but continued move with the underlying trend. For more gingerly, and not aggressive trading,...
On the monthly chart, the US Dollar Index has soared without a pull back since May 2014 leaving questions for a possible future retracement. Approaching the 1.618 Fibonacci extension (~101) and previous key resistance at 103 is a price region where the effect on price action behaviour will be of significant interest from a technical perspective to witness a...
EUR/GBP is seen to be trending below the 50 ema in an aggressive fashion. A potential entry to join the downtrend on the 1 hour chart lies between the levels ~0.7000 and ~0.7080 which nearly coincide with the declining 50 and 20 emas respectively. A formation of a high test bar/reversal pin bar/shooting star will be a sign of a short set up at...
Case for entry short: downtrend on 1 hour chart with successive cycles producing clean LLs and LHs; declining trend line tested for the third time; retest of 20 ema giving a high test/shooting star/bearish pin bar reversal close; and retest of resistance ( at previous low) at ~ 0.7620 which coincides with Fibonacci cluster (0.382 and 0.618) from two swing points.
Price action reveals signs of a possible reversal since AUD/NZD has reached the multi-year low zone (~1.0530-1.0428). Divergence on Stochastic and RSI is evident on the monthly, weekly and daily time frames combined with a possible low test in formation on the monthly chart, indecision engulfing bar at a potential end of cycle, and bullish behaviour also hinting...
Similar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view: - inside bar following high test bar in pull back to 50ema - price rejection at resistance at ~0.8210 - price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210 - Stochastic and RSI in overbought territory - Stochastic and...
Confluence of factors for short set up: - resistance at ~0.9590 (also weekly resistance) - inside bar formation in pull back below resistance - 0.786 Fibonacci retracement/rejection - hidden divergence (bearish trend continuation) entry - below low of inside bar stop loss - above mother bar target - previous swing low or 1.272 Fibonacci extension
Now looking more like a doji bar than a high test bar, today' price bar has put in a lower high that narrowly missed the 50 ema, but nonetheless is still on point for an entry short. Price has rejected and closed below the 0.618 FIbonacci level to complement this short setup. Entry - below today's price bar Stop - above today's price price Target - 0.7500 which...
In its prominent down trend, price continues to have pronounced consecutive cycles below the 20 ema pushing EUR/USD lower. Today’s bearish reversal bar bumped just shy of a past level, now acting as resistance, at 1.2500, and closes below 20 ema and 0.618 Fibonacci level. If a short trade does not trigger a re-entry can taken at the test of 50 ema and/or...
In view of price action on the daily time frame, EUR/USD has demonstrated a lower high with a rally back into the daily time-frame's falling trend line with the possibility of heading into ~1.2885 where the recent daily high sits. A violation of this high, though unlikely, could see a change in trend in EUR/USD. Until then, as indicated by price action behaviour,...
The AUD/JPY daily chart displays consecutive lower highs and lower lows with a potential short setup to continue the visible falling trend (supported also by downward trendline). The current corrective phase seems to be running out of steam in initiation of a potential impulsive phase, with the production of a bearish reversal price bar: - ricocheting off a...
Price action has maintained a falling direction with passably uniform cycles below the 10 ema and trend line resistance offering entries below conspicuous high test bars. The moving averages are in their correct order and fanning out pleasingly. Tonight's set up is also an entry below the high test bar that has rejected resistance at ~17.60 and bounced off the 10...