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Articles by Mark De La Paz

October 9th, 2013 @ 1:45 am by Mark De La Paz

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Gold
Resistance: 1321.92 moderate / 1328.41 moderate / 1335.14 moderate
Support: 1316.09 minor / 1313.67 moderate / 1293.15 minor

With Gold prices again just under the daily EMA lines we find ourselves unable to see a follow through to Mondays strong open. Daily indicators has stochastic pushing for over bought levels along with a new bullish cross in MACD. From the 4H level we are seeing a confluence of bears as macd is in the process of crossing lower and heading back under the zeroline while stochastic is poised to push oversold. Hourly charts for their part has mixed signals with stochastic heading up and macd’s down. Note with a pattern of lower highs and lowers along with rejections from the EMA lines our preference is to look for shorts on a break of a support line.

AUDUSD
Resistance: 0.9458 minor / 0.9483 moderate / 0.9528 moderate
Support: 0.9413 moderate / 0.9375 moderate / 0.9354 minor

Aussy again saw new highs Tuesday though our close was disappointing given the inability to hold for a high wave spinning top in the daily charts. From indicators we have a new bullish crossover in the making out of the macd’s while daily stochastic is coming off overbought levels. The EMA lines are bullish with a steady ascent. In intraday charts we are seeing sell signals with stochastic bearish in both 4H and hourly time frames while macd has a new bearish crossover in the 4H level even as hourly macd has pushed back under the zero line. At the moment immediate risk calls for a break lower but with a moderate support from S1 at 0.9415 this may be difficult a test without an external catalyst. Take too long to break lower and we will call for buys of the said price around the open of European markets.

GBPUSD
Resistance: 1.6124 minor / 1.6156 moderate / 1.6177 minor
Support: 1.6074 minor / 1.6048 minor / 1.6025 moderate

Tuesday saw Cable with a roller coaster ride initially selling off 1.6098 38.2 Fib retracement of its drop from last week only to close back up with a along tail in the daily charts. Note the initial sell-off saw GBPUSD down to the 21D EMA line allowing argue a big picture bounce. Indicators show stochastic coming off oversold levels while macd is dropping. From the 4H picture we have a confluence of buys with stochastic looking to push back into overbought areas while macd is looking for a move backup above the zeroline. In hourly charts we have mixed signals with stochastic coming off overbought levels while macd is heading up with a new bullish crossover. For now we appear to have lost some steam in the earlier rally with a double top forming from hourly charts. We also have a slew of UK data Industrial Production and Manufacturing, Credit Conditions Survey and Trade Balance all set for release at 0830GMT. Given this we prefer remaining sidelined with a close under 1.6074 a bearish trip, as it triggers the hourly double top for 1.6028 projected lows.

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October 8th, 2013 @ 1:45 am by Mark De La Paz

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EURJPY
Resistance: 131.47 moderate / 131.64 moderate / 131.86 minor
Support: 131.13 minor / 130.97 moderate /130.62 moderate

EURJPY saw new lows in Monday trade after an earlier whipsaw was unable to hold the upside as equity markets dropped across the globe. Daily indicators now have a confluence of bears from the big picture with stochastic in oversold levels while macd has also just pushed below the zero line. In intraday charts we are seeing a confluence of bears with stochastic looking to push back into oversold levels from the 4H picture while macds are also dropping and are below zero. Hourly charts for their part has mixed signals with stochastic coming off oversold areas while macd is flat below the signal line. For the moment there is little sense of urgency though we prefer looking for shorts from under the daily pivot should he equity markets begin to falter further. Any close above 131.47 could alter the scenario for a technical bounce. Note we have a pattern of whipsaws where the lows kept getting lower along with the declining highs.

USDJPY
Resistance: 96.84 moderate / 97.05 moderate / 97.30 moderate
Support: 96.56 minor / 96.28 minor / 95.92 moderate

USDJPY started the week on very bearish footing with new lows from our rejection off the daily EMA lines last week while indicators suggests a continuation of our bear trend. Daily stochastic is pushing further into oversold areas while macd is heading lower and the EMA lines come-off dead crosses. In the 4H picture we have stochastic reentering oversold levels while macd has a new dead cross this given the bearish breakout from the previous candle. Hourly charts for their part are mixed as stochastic comes off oversold areas and macds drop while we see a series of spinning tops. For now the immediate view calls for a follow through sell-off from just under the 98.64 daily central pivot as equity markets continue to slide. Note that the longer we take to sell-off the greater the risk of a pullback, buys can also be taken on a close above 96.84 at the open of European markets.

AUDUSD
Resistance: 0.9458 moderate / 0.9483 minor / 0.9528 moderate
Support: 0.9420 minor / 0.9402 minor / 0.9375 moderate

After easing off early in Asian trade we eventually saw Aussy rally up in European trade to push for the swing highs at 0.9458 with daily indicators showing an overbought stochastic and macd’s seeing a new bullish cross as well. Note we are still looking for a follow through bounce off the 38.2 fib retracement for the September rally and have a valid inverted head and shoulder with 0.9590 as its pattern target. In the lower time-frames we have a mixed view in 4H charts with stochastic looking to push overbought and macds flat just under the signal line. Hourly charts for their has a confluence of buys with stochastic coming off oversold levels and macds poised at a new bullish crossover. Note we have Australian Job Advertisements and the Business Confidence figures up for release at 0030GMT with good reads likely to see us with some follow through rally.

GBPUSD
Resistance: 1.6098 moderate / 1.6122 moderate / 1.6156 moderate
Support: 1.6074 moderate / 1.6049 minor / 1.6025 moderate

Cable saw a close just under the 38.2 Fib retracement of our sell-off from last weeks highs, a moderate resistance, this following a bounce of the 21DEMA. We turned out slightly short of the daily averages on lack of impetus monday. From indicators we are currently seeing a mixed signal from the daily charts as stochastic comes off oversold levels and macds are dropping. Note we continue to see good numbers out of the UK argument for strength in GBP. From the 4H picture we have a confluence of buys as macd crosses up while stochastic is pushing for overbought levels. Hourly charts for their part has stochastic with a bullish crosses and macd’s also heading up. for the moment our more immediate risk is fora bullish breakout. Coupled with good economic numbers we prefer looking for a break of 1.6098 as European markets open later and use the move as our entry.

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October 7th, 2013 @ 1:55 am by Mark De La Paz

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AUDUSD
Resistance: 0.9458 moderate/ 0.9486 minor / 0.9528 moderate
Support: 0.9430 moderate / 0.9408 minor / 0.9388 minor

Aussy saw limited range Friday though still managing to set the highs for the previous week as it continues its bounce off the daily EMA lines and 38.2 Fib retracement level for the September rally from earlier the week past. Daily indicators now see a confluence of buys with stochastic in overbought areas and macd’s a new bullish crossover. In the lower time frames we have mixed signals as 4H stochastic heads down and macd look’s up while price charts have been mixed though overall trend is bullish. Hourly charts for their part are also mixed with stochastic overbought and macd heading down. Note we have a bank holiday in Australia though the AIG Construction Index was still released showing improvement yet remaining under 50. Given these for now we prefer remaining sidelined looking for a close above 0.9458 to confirm bullish interest in what could be a slow day.

GBPUSD

Resistance: 1.6063 moderate / 1.6097 minor / 1.6122 moderate
Support: 1.6018 moderate / 1.5982 moderate / 1.5950 moderate

Cable turned out to be a ‘dark cloud cover’ in the weekly charts following Fridays sharp sell-off that added with Thursdays drop more than engulf the price action from earlier in the week. From indicators we have daily stochastic in oversold levels while macd is dropping, we appear to have opened the week though a bullish gap bouncing off the 21D EMA. In the lower time-frames we have mixed signlas as 4H stochastic tries to come off oversold levels and macd is dropping. Hourly charts for their part has stochastic in overbought areas while macds show a new bullish crossover. Given a bare calendar ahead and the mixed signals we prefer remaining sidelined until either side gives. Look for possible buys above the daily pivot 1.6063 or shorts on a push below the moderate support at 1.5983.

XAUUSD
Resistance: 1316.09 minor / 1320.41 minor / 1325.36 moderate
Support: 1311.28 minor / 1302.14 moderate / 1295.31 minor

On the weekly close we have a bear candle in Gold though with a substantial looking tail and modest black body. We still saw the close under 23.6 Fib retracement of the sell-off from October 2012 highs and below the real body of the previous weekly candlesticks. Among indicators we are seeing mixed signals with stochastic heading up and macd flat below the signal. From the 4H picture we have a confluence of buys with stochastic crossing highs and macd also looking up nearing a push past the zeroline. Hourly charts however see mixed signals with stochastic coming off overbought levels while macd also has a bullish crossover. Given the mixed view we prefer a straddle with buys above the immediate resistance at 1316.09 or sells under 1311.28 as we cover the minuscule gap at the open. Note any resolution of the US shutdown would likely see Gold charts tanking.

EURJPY
Resistance: 132.12 moderate / 132.38 moderate / 132.77 moderate
Support: 131.64 moderate / 131.39 minor / 131.01 moderate

We have EURJPY opening with a bearish gap and in the process of getting a follow through bear market as we try to push under the daily EMA lines continuing a pattern of lower highs and lower lows. Other indicators has stochastic looking to push oversold while daily EMAs are also poised to push below the zero line, we also have prices under the daily pivot. In intrday charts we have 4H indicators poised to get a confluence of bears with macds already under zero and dropping while stochastic is looking for a bear cross of its own. Hourly charts for their part has mixed signals with stochastic coming off over sold levels while macd has a new bear cross. For now we see little sense of urgency though over all bias is for the sell side, a break of 131.64 can be a bearish entry.

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October 4th, 2013 @ 1:45 am by Mark De La Paz

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GBPUSD
Resistance: 1.6183 moderate / 1.6214 moderate / 1.6240 minor
Support: 1.6153 minor / 1.6126 moderate / 1.6095 minor

In the end daily candlesticks in Cable show more argument for a sharp pull back with Tuesday’s ‘gravestone doji’ now joined by a ‘bearish engulfing’ of the failed attempt at a new high Wednesday. Daily indicators now has a confluence of bears with stochastic showing a new bearish crossover and the macd’s clearly off overbought areas. we could be seeing the start of a mean reversion play. In 4H charts we have stochastic already oversold and macds looking to push under the zero line. Note we have triggered a double top from the 4H picture. In hourly charts we have stochastic coming off oversold levels while macd is at risk of a bullish crossover. For now look for a push through the New York congestion floor at 1.6153 to trigger a follow through sell off, pattern target for the double top is at 1.6050.

GBPJPY
Resistance: 157.37 moderate / 157.56 moderate / 157.81 minor
Support: 156.77 moderate / 156.28 moderate / 155.90 minor

GBPJPY triggered a multiple top in the daily charts Thursday dragging prices down into the daily EMA lines while indicators now show stochastic in oversold levels as macd’s continue to head down to the zeroline. Note our pattern target calls for a sell-off to 154.67. From the lower time frames we have 4H indicators showing macd’s below the zeroline and dropping further while stochastic is oversold though at risk of taking a peak above the 20 threshold. hourly charts for their part still has a confluence of bears with stochastic poised to push oversold and macd’s below the signal and under zero. For now look for a push below the 34DEMA at 156.77 to trigger a further sell-off our objective the 55D EMA at 155.61 possibly on to the pattern target in the coming week.

AUDUSD
Resistance: 0.9734 moderate / 0.9457 minor / 0.9486 minor
Support: 0.9393 moderate / 0.9372 moderate / 0.9354 minor

Thursday saw Aussy with a tighter range though still a bullish candle keeping the idea of a push to the psychological 0.9500 going as we continue our bounce off the 38.2 Fib retracement for the September rally. Among indicators we have stochastic poised to push overbought while macd is also looking for a bullish crossover. note this is also a bounce off the daily EMA lines. From the lower time frames we are seeing a confluence of buys as stochastic in both 4H and hourly charts are moving for the overbought areas even as we see new bullish crossovers out of the macd indicator. For now we are looking for a push through the weeks highs at 0.9434 for a surge to the 0.9500 area.

USDJPY
Resistance: 97.30 moderate / 97.51 minor / 97.77 moderate
Support: 96.86 moderate / 96.38 minor / 95.92 moderate

In the end all the whipsaw in USDJPY intraday charts turned out to be a daily high wave spinning top suggesting a loss of bearish momentum even as indicators continue to argue the sell side. We have prices under bearish daily EMA lines with dead crosses from earlier in the week while stochastic has pushed oversold and macd’s are dropping. In intraday charts we are also seeing mixed signals as stochastic is poised to push higher failing to see oversold areas while macd see a bear cross. Hourly charts for their part has sell signals stochastic looking to push oversold. Given the high wave spinning top the preferred course of action is to remain sidelined as we risk a technical correction with the end of the week. A close below 96.83 however should see us with follow through weakness while a close above 97.30 could see a technical correction with the weekend.

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October 3rd, 2013 @ 1:51 am by Mark De La Paz

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AUDUSD
Resistance: 0.9375 minor / 0.9392 minor / 0.9410 minor
Support: 0.9342 moderate / 0.9333 minor/ 0.9312 moderate

After an earlier sell-off Aussy managed to build a base off the 0.9338 area for a bounce in New York to close with along tail in daily candles. This reinforces the notion of bouncing off the 21D EMA though indicators remain mixed as we have yet to see macd’s turn up though daily stochastic is bullish. Given that we came off a bounce from the 38.2 Fib retracement of the September rally the long tail should underscore the presence of bulls. From the 4h picture we have yet to see macd’s crossing up though we are poised to do so while stochastic is looking to push through the 80 level, we risk forming an evening star at the close. Hourly charts for their part are mixed with stochastic heading down while macd is above the signal line. Look for buys off S1 at 0.9342 or on a close above 0.9375.

EURJPY
Resistance: 132.50 minor / 132.77 moderate / 133.05 minor
Support: 132.09 moderate / 131.61 moderate / 131.41 minor

In the end EURJPY bounced off its European morning trade congestion floor to close with along tailfor the daily charts, a possible bullish reversal hammer. That said we are still within the daily EMA’s with little catalyst for risk taking. From indicators we have daily stochastic poised to cross lower while macd is heading for the zero line. In the lower time frames we are seeing buy signals despite the lack of momentum from price action, 4H stochastic is looking to push overbought while macd has anew bullish cross. In the hourly charts we are seeing a similarly bullish setup with stochastic heading up and macd looking to push through the zero line. For now we prefer remaining sidelined waiting for a close under 132.09 to signal a resumption of the risk averse tone from the broader market.

EURUSD
Resistance: 1.3606 minor / 1.3629 moderate / 1.3669 minor
Support: 1.3567 moderate / 1.3539 minor / 1.3512 moderate

Wednesday saw Euro pushing through two week long congestion resistances to close with a bullish breakout suggesting we make run for the previous swing highs at 1.3710. Daily indicators has stochastic looking up while macd’s see a new bullish crossover. Note given our congestion the past two weeks daily EMA’s have caught up with prices reducing the risk of mean reversion. Intraday we have a confluence of buys with stochastic pushing overbought and macd’s up in the 4H picture. Hourly charts for their part has macd’s with a bearish crossover and stochastic heading up. Given the flag in our hourly charts we prefer looking for an eventual bullish break out.

XAUUSD
Resistance: 1321.50 moderate / 1333.10 moderate / 1337.62 minor
Support: 1312.38 minor / 1305.55 moderate / 1293.45 minor

Gold rallied as markets reasses the US government shutdown and the private sector reports its work disruptions. Daily indicators now has a mixed view as stochastic is in the process of crossing higher while macd is bearish. Note we appear to have kept the pattern of lower highs and lower lows from September. In the lower time frames we are seeing more mixed signals as stochastic comes off overbought areas and macd show a bullish crossover. Hourly charts for their part has stochastic looking to push oversold while macd has a new bear cross in the making. Immeidate riskfor gold is to test the daily pivot at 1305.55. We look forward to seeing price action suggest we are ready to bounce off these levels.

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October 2nd, 2013 @ 1:44 am by Mark De La Paz

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EURUSD
Resistance: 1.3536 minor / 1.3568 moderate / 1.3587 minor
Support: 1.3496 moderate / 1.3461 moderate / 1.3445 moderate

Euro saw a false breakout of its range play for the past two weeks at the open of European markets. In the end we pushed back under 1.3568 with a ‘gravestone doji’ for a daily candle. Among indicators we are seeing a confluence of bears with stochastic flat below the signal line and macd’s the same flat just under the signal line suggesting bias is for the sell side. In the 4H levels we have stochastic in oversold areas while macd also has a new bear cross. Hourly charts for their part has stochastic poised to push oversold and macd’s just dropping through the zero line. For now we are looking to ease to the congestion floor at 1.3461 though projected lows suggests a possible bearish break, the number at 1.3455. Consider shorts on a break of S1 in pivots at 1.3496 or coming off the congestion resistance in New York pm trade.

GBPUSD
Resistance: 1.6202moderate / 1.6226 minor / 1.6260 moderate
support: 1.6162 moderate / 1.6131 moderate / 1.6095 minor

After the early surged as the US government teetered into a shutdown Cable eventually eased off as for a ‘shooting star’in the daily candlesticks suggesting risk of a pullback. Note yesterdays numbers showed UK CIPS Manufacturing PMI at 56.7 short of the 57.5 consensus and previous read. From indicators we have daily stochastic coming off overbought areas while macd’s are at risk of a bear cross after flattening out despite recent gains in prices. In the lower time frames we are seeing sell signals with 4H stochastic in oversold areas while macd has crossed lower, hourly charts also has stochastic oversold and macd looking to push under the zero line. With the push through yesterdays lows we already have an ongoing mean reversion play the next entry a break of the 1.6162 support, S1 from daily pivots. Projected lows puts us with 1.6106 just above the minor support at 1.6095 though the 21D EMA is all the way down to the psychological 1.6000 area.

AUDUSD
Resistance: 0.9410 minor / 0.9455 moderate / 0.9500 psychological
Support: 0.9371 moderate / 0.9354 minor / 0.9308 moderate

Following the RBA’s omission of any reference on potential easing in its statement we had Aussy rallying strongly Tuesday seeing twice the average daily range. From our charts we have a bounce of the 38.2 Fib retracement level for the September rally and the daily EMA lines. Indicators still show mixed directions though bias is for the up side as stochastic comes out of oversold levels while daily macd has bottomed out looking to cross backup following a bubble. In intraday charts we have stochastic coming off overbought levels from the 4H picture while macd is rising and we have candlesticks consolidating just above the 38.2 Fib retracement level for yesterdays rally. Hourly charts for their part has a confluence of bears. For now we prefer looking for a buy on dips to the daily pivot at 0.9371 though a push through 0.9410 could also be seen as a bullish entry.

EURJPY
Resistance: 132.74 moderate / 133.17 moderate / 133.48 minor
Support: 132.31 minor / 132.01 moderate / 131.64 moderate

Tuesday saw EURJPY ease off to close under the lower half of the preceding candlesticks real body, our move taking prices back inside the daily EMA lines. Daily indicators are mixed with a bearish macd and stochastic heading up. Note we are in a counter trend for the daily higher highs and higher lows from August. in the lower time frames we have a bearish view with 4H stochastic in oversold levels and macd crossing lower below zero while price action shows long wicks in 4H charts or bearish engulfing real bodies. Hourly charts has a new confluence of bears with stochastic just crossing lower. For now we prefer looking for shorts on a break of 132.33 our minor support. Alternative entry will becoming off the 132.74 daily central pivot.

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October 1st, 2013 @ 1:52 am by Mark De La Paz

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Gold
Resistance: 1331.50 moderate / 1337.70 moderate / 1344.24 minor
Support: 1324.69 minor / 1319.15 moderate / 1313.36 minor

After an earlier attempt to rally past the daily EMA lines Gold appears to have given us a lower high failing to stay above the daily EMA’s in the Wellington breakout seeing a follow through drop for the rest of Monday’s trade. From indicators we have a bearish bias to support the EMA rejection with stochastic crossing lower and macd’s under the zero line though marginally flat above its signal. From the lower time-frames we are seeing mixed signals with 4H stochastic coming off oversold levels while macd is dropping and the hourly charts showing the same configuration. Despite the mixed signals our preference is to look for a rejection from the resistance in line with the lower highs from the daily charts. Consider shorts on shooting stars with long wicks above the daily pivot at 1331.50 or coming off 1337.70.

GBPUSD
Resistance: 1.6216 moderate / 1.6239 minor / 1.6308 moderate
Support: 1.6172 moderate / 1.6131 moderate / 1.6095 minor

After spending much of the day in a range play, Cable pretty much established the days range on a bullish breakout early in New York trading. Daily indicators shows a confluence of buys with stochastic in overbought areas and macd’s crossing backup after staying flat below its signal. Daily EMA’s have consistently been bullish with nearly steady gaps between the different lines. Note we are expecting UK data again, with Manufacturing PMI set for release underscoring the trend of market beating results from the UK. In the lower time frames we have a confluence of buys in the 4H picture stochastic looking to push overbought while macd is rallying. Hourly charts for their part are mixed with a bullish stochastic and bearish macd. For now we prefer looking for continued base building just above the daily pivot though for an entry we will be straddling any tight congestion by the time European markets open.

AUDUSD
Resistance: 0.9338 moderate / 0.9354 minor / 0.9375 moderate
Support: 0.9312 moderate / 0.9285 moderate / 0.9264 minor

Aussy managed to close its bearish gap from yesterdays open and saw a follow through rally for the play the daily pivot. In the end we pulled back in New York midday trade for along wick but we also have a decently sized real body. Among indicators we are mixed as daily stochastic has just come out of oversold levels while macd is heading lower. Note we are coming off the 38.2 Fib retracement level of the September rally and the daily EMA lines while the previous inverted SHS pattern remains valid for a target of 0.9590. Intraday we are seeing mixed signals from macd and stochastic in both the hourly and 4H picture. From the calendar we have had more bullish numbers as manufacturing for Australia swings back into expansion while we face retail sales numbers and a rate decision from the RBA. For now we prefer looking for follow through gains off the Fib bounce use a push through 0.9338 as a bullish entry.

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September 30th, 2013 @ 1:57 am by Mark De La Paz

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USDJPY
Resistance: 97.90 moderate / 98.18 minor / 98.44 moderate
Support: 97.55 moderate / 97.30 minor / 96.86 moderate

After a bearish engulfing candle Friday we have USDJPY gapping lower at the open for the week helped by seasonal cycles and equity weakness. Daily indicators now show a confluence of bears with stochastic pushing oversold and macds easing through the zeroline. From the price chart we also see dead crosses forming among the daily EMA lines. In the lower time frames we are also seeing sell signals in both hourly and 4h charts with stochastic oversold for both time frames and macd’s dropping while under the zero threshold to underscore a bear trend. We prefer looking for further weakness with early losses in equity charts likely to convince us to sell from under 98.44 the daily pivot.

GBPUSD
Resistance: 1.6178 strong / 1.6226 moderate / 1.6300 moderate
Support: 1.6131 minor / 1.6104 moderate / 1.6062 moderate

Cable saw a strong close Friday pushing us further to the 1.6300 objective congestion resistances from the same period last year. At the open we have seen a quick rally up though having trouble with the 1.6178 resistance area, previous weekly highs. Indicator wise we havea confluence of buys with stochastic pushing further into overbought areas while macd is also opening up. In the lower timeframes we have a confluence of buys from the 4H picture with stochastic overbought and macd’s on the rise. Hourly charts for their part also has stochastic oscillating around 80 and macd heading up. Note price action actually suggests a loss of momentum which means that in combination with a strong resistance, our more immediate risk is for a rejection. Look for shorts from under the 1.6178 region for a limited pullback to 1.6131.

EURJPY
Resistance: 132.35 minor / 132.64 moderate / 132.96 minor
Support: 131.87 moderate / 131.62 minor / 131.00 moderate

With seasonal cycles and a bearish equity market we saw EURJPY selling off Friday closing just above the weekly lows then and opening the new week with a sharp bearish gap. We now find EURJPY inside the daily EMA lines with stochastic pushing further into oversold levels and macd also opening up with its signal line heading down to the zero threshold. Intraday we have a confluence of bears with both 4H and hourly stochastic pushing well into oversold levels while their macd lines are also heading lower beneath the zero threshold. Given the almost daily range for our bearish gap we find it difficult to look for a follow through sell-off. The longer that we stay just above 131.85 and build a base intraday the more that we will look at closing the gap later in the day.

AUDUSD
Resistance: 0.9338 moderate / 0.9370 minor / 0.9402 moderate
Support: 0.9285 moderate / 0.9258 moderate / 0.9226 moderate

Aussy continued to drop Friday pulling us back to the 38.2 Fib retracement level for the rally in September and around the 21DEMA, currently 0.9301. Daily indicators show a confluence of bears with stochastic oversold and macd’s dropping though given the support our preference would be to look for a bounce. From the 4H picture we have a confluence of bears with stochastic oscillating around 20 and macd’s heading lower. Hourly charts also see a confluence of bears with stochastic in oversold areas and macds just crossing down. Given the overwhelming bearish tone from multiple timeframes and good support we suggest looking for base building before going long confirming the recovery in Chinese manufacturing data at 0130GMT.

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