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Articles by Mark De La Paz

September 10th, 2013 @ 1:34 am by Mark De La Paz

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EURUSD
Resistance: 1.3280 minor / 1.3301 moderate / 1.3320 moderate
Support: 1.3250 minor / 1.3232 moderate / 1.3187 moderate

Euro saw a follow through rally from Friday’s piercing pattern seeing the close above the daily EMA lines. Note we’ve pushed back up above the trigger of a daily double top pattern from two weeks back. Daily indicators has stochastic looking for a push back into overbought areas while macds have a bullish cross and is looking to push back above the zero line. In the lower time-frames we are mixed as 4H stochastic comes off overbought levels and macd’s push through zero even as candlesticks show a gravestone doji. Hourly charts are the opposite with stochastic coming of oversold levels even as macd is bearish though largely flat below the signal line. For the moment we prefer remaining sidelined though bias is for the buy side, consider going long off 1.3232 better yet 1.3187.

GBPUSD
Resistance: 1.5732 moderate / 1.5750 moderate / 1.5781 minor
Support: 1.5685 moderate / 1.5650 minor / 1.5624 minor

Cable saw a strong start for the week pushing past swing highs at 1.5716 with daily indicators showing stochastic looking poised to push overbought and macd’s with a new bullish cross. Note economic releases of late suggests that the UK is seeing the fastest pace of recovery among the majors. Daily price charts show little sign over the rally for the past week losing momentum. Intraday we are seeing signs of potentially steeper pullback as candlesticks see a ‘dark cloud cover’ in 4H charts and stochastic come off overbought levels and macd’s top-off. Hourly charts as are mixed for their part as stochastic comes off oversold levels and macd’s head down. For the moment we prefer looking for basebuilding and a possible bounce off the daily pivot at 1.5685 or joining a bullish breakout at the open of European markets.

AUDUSD
Resistance: 0.9240 moderate / 0.9258 moderate / 0.9317 moderate
Support: 0.9212 moderate / 0.9183 moderate / 0.9166 minor

Aussy triggered a an SHS pattern Friday and saw a follow through rally yesterday. Note his could be the start of a major pullback as the premise for weakness begin to fade. Among indicators we have daily stochastic pushing further into overbought areas as the macd’s managed to cross the zero line heading up and EMA lines form golden crosses. From the calendar we are waiting for potential catalyst for the buyside, a recover in NAB Business Confidence at 0130GMT and China data at 0530GMT. In the lower time-frames we have a confluence of buys in the making as macds in both hourly and 4H charts look to push up, while 4H stochastic is overbought and hourly stochastic is heading for the 80 threshold. We are already long with the break of 0.9240 the immediate moderate resistance, projected highs call for a rally to 0.9307 while the key resistance is at 0.9317.

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September 9th, 2013 @ 1:57 am by Mark De La Paz

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USDJPY
Resistance: 10.10 minor / 100.30 moderate / 100.65 moderate
Support: 99.74 minor / 99.29 minor / 99.01 minor

USDJPY gapped higher at the open after seeing a sharp sell-off Friday which saw the pair testing the daily EMA lines with its lows. At the moment we have prices at the upper range of Fridays large bearish real body while price action is suggesting we cover the gap. Indicators has new golden crosses from the EMA lines while stochastic is off overbought areas and macd is rising. Intraday we have mixed signals as candlesticks show a bearish engulfing in the making for both hourly and 4h charts even as indicators show the 4H picture mixed with stochastic heading up and macd’s bottoming out. Hourly charts has stochastic in overbought levels with macd’s looking to push back above zero. At the moment we prefer remaining sidelined given that price action is suggest we cover gap against the bullish indicators, a close below 99.74 however may be seen as argument to short for 99.10 Friday’s close.

GBPJPY
Resistance: 156.42 minor / 156.76 moderate / 156.96 minor
Support: 155.90 minor / 155.50 minor / 1555.02 moderate

GBPJPY opened the week with a bullish gap quickly seeing apush through Fridays highs in thin trading during the Wellington session. Among indicators we have a mixed view as stochastic comes-off overbought areas while macd is pushing up and as we see a wide gap between prices and the daily EMA lines. From the lower time frames we have a bearish engulfing among candlesticks with a big double top in the making in 4h charts. This as we see a mixed view with stochastic pointing up in this time frame and macd dropping. In the hourly level we are also seeing mixed signals with stochastic off overbought areas and macd’s pushing backup. Note we have an ongoing attempt to cover the bullish gap with the push back under R1 155.90 serving as an entry signal. Closing levels from Friday is at 154.83 while today’s projected low is merely 155.98.  Consider shorts at market.

EURJPY
Resistance: 131.38 minor / 131.82 moderate / 132.14 minor
Support: 131.02 moderate / 130.51 moderate / 130.27 minor

Friday saw a rejected from our wide range play resistance in EURJPY though the weeks open saw a bullish gap pushing past Friday highs for our range play ceiling. Daily indicators has mixed signals with stochastic heading lower and macd’s up though price action has already started the process of covering the Wellington gap. In the lower time frames we have a mixed set of signals starting off with the 4H stochastic heading up for the overbought threshold while macd is at zero and beneath the signal line. hourly charts are the opposite with stochastic already coming off overbought areas and macd’s pushing up just passing through the zero line. At the moment given our breakout we have a sell at market with an objective of 130.61 Friday’s close and today’s projected lows.

Gold
Resistance: 1393.67 moderate / 1399.80 minor / 1404.47 moderate
Support: 1384.35 moderate / 1378.85 minor / 1373.77 moderate

Gold saw a turn-around Friday after triggering a daily head-and-shoulder the day before as markets were disappointed with the weakness exhibited in the NFP results following a sharp downside adjustment for the July figures. Indicators show mixed signals with stochastic seeing a bullish divergence while macd is heading lower, the candlestick themselves has a piercing pattern from the daily level. From the lower times we ae however seeing a confluence of buys as hourly charts show anew bullish cross in stochastic while macd is also above the signal line. In the 4H scale we already have stochastic crawling overbought while macd waits to push above the zero line heading up. For now immediate risk is for further gains look for a push past 1393.67 as our trigger for a rally. Note we have geopolitical tensions in the middle-east providing a lift for alternative haven assets.

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September 6th, 2013 @ 1:45 am by Mark De La Paz

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EURUSD
Resistance: 1.3128 minor / 1.3150 moderate / 1.3191 moderate
Support: 1.3103 moderate / 1.3078 moderate / 1.3048 moderate

Following a pull back to the 3-week double top trigger Wednesday, we have EURUSD resuming its bear market with Thursdays close just above the 50 fib retracement level of our rally from July. Daily indicators has macd’s pushing through the zero-line for both main and signal line with stochastic looking to ease back-under the 20 mark after taking a quick peek out of oversold areas. Note we have dead crosses forming among the daily EMA’s. Intraday we are seeing a mixed picture, 4H stochastic is oversold and macd’s are bearish beneath the zero mark. Hourly charts for their part has a bullish stochastic and a new bullish crossover in macd. Given the immediate support we appear to be looking for a technical bounce for the moment though a strong NFP read from the US will have us looking for a sell-off to the psychological 1.3000 area.

EURJPY
Resistance: 131.50 moderate / 131.97 moderate / 132.41 moderate
Support: 131.03 moderate / 130.73 minor / 130.51 moderate

EURJPY pulled back Thursday as we finally saw EURUSD breaking lower on strong US jobs numbers and a more cautious take by the ECB to recent strength in Eurozone economic numbers. Daily indicators has a mixed view with stochastic coming off overbought levels while macd has a bullish cross. Note that our price charts are forming a double-top with-in a double top with and even wider weekly scales double top. From the lower time-frames we are seeing a confluence of bears, in 4H charts stochastic is looking to push into oversold areas while macd has anew bearish crossover. Hourly charts has the macd easing further beneath the zero line and stochastic dropping. Immediate risk is for further weakness as we try to form a top in the big picture. Look for a close below yesterdays lows at 131.03 as a possible entry point for new shorts.

USDJPY
Resistance: 100.37 moderate / 100.62 minor / 100.86 moderate
Support: 99.96 moderate / 99.61 moderate / 99.24 moderate

With a broadly firmer dollar we have USDJPY seeing new highs for the week pushing on following the invalidation of Tuesday’s high wave spinning top as markets look for a strong us jobs figure. Among indicators we have a confluence of buys with stochastic in overbought areas while macd is also pushing higher even as daily EMA lines see golden crosses. In the 4H picture we have stochastic overbought while macd is flat and the price chart shows indecision. Hourly charts for the moment has a confluence of bears. Immediate risk appears to be for a pullback as limited position squaring ahead of possibly volatile NFP release could be expected. A strong read later could bring forward the tapering off risk in US QE. We prefer looking for buys on dips to the 99.60(71) region S1 in pivots.

XAUUSD
Resistance: 1377.80 moderate / 1384.35 moderate / 1391.07 moderate
Support: 1365.25 minor / 1356.41 moderate / 1347.09 moderate

Gold managed to trigger a daily head and shoulder pattern Thursday following a good read in he US claimant count and with strong non-manufacturing PMI’s. Daily indicators has a confluence of bears with stochastic poised to push oversold while macd is dropping though prices are inside the EMA lines. From the lower time-frames we have 4H stochastic in oversold areas while macd is heading down. Hourly charts however are looking for a technical bounce as stochastic is poised to push overbought. At this point immediate risk is for a correction though the overall view for gold suggests vulnerability as we face a a potentially strong US jobs number.

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September 3rd, 2013 @ 1:50 am by Mark De La Paz

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AUDUSD
Resistance: 0.9016(22) moderate / 0.9043 minor / 0.9070 moderate
Support: 0.8985 moderate / 0.8962 minor / 0.8935 minor

Aussy started the week on a strong footing gaping higher at the open of Wellington markets and pushing on to close the day just under the daily EMA lines with a double bottom clearly forming. Daily indicators has stochastic poised to push into overbought areas while macd has just crossed up, we are looking to takeout the immediate resistance 0.9016(22) 21D EMA. From the lower time-frames we are seeing a confluence of buys with 4H and hourly stochastic poised to push overbought while macd’s in the former time-frame have managed to push through the zero line heading up and in the hourly level is seeing a new bullish crossover. Note we have a busy calendar for Australia with Retail Sales at 0130GMT a possible catalyst for further gains at reads above 0.4%. We also have the RBA with a Rate Statement at 0430GMT.

AUDJPY
Resistance: 90.11 moderate / 90.55 minor / 91.07 minor
Support: 89.52 minor / 89.06 moderate / 88.70 minor

With a sharp rally from Asia to European trade we have AUDJPY pushing through bearish daily EMA lines Monday to close just under the 55D EMA and our trigger for a big picture double bottom. Daily indicators has stochastic in overbought areas while macd’s are looking to push through the zero line even as prices are currently tangling with the 55D EMA, 89.84. Intraday we have a ‘Mat Hold’ in 4H charts while stochastic is crawling above 80 and macd continue to push higher. From the hourly picture we have stochastic just inside overbought territory while macd also has a new bullish cross. Immediate risk calls for our daily pattern to be triggered, a push through the 90.11 region may be seen as an entry, technically pattern target is at 93.84 though for today we are looking at a more modest high at 90.55 possibly 91.07 on an equity/commodity market rally.

USDJPY
Resistance: 99.67 minor / 99.95 minor / 100.30 moderate
Support: 99.38 minor / 99.19 moderate / 98.72 moderate

USDJPY saw a push through the resistance line from July 7 highs with prices again surging just before the open of Japanese markets. It appears that we have risk appetite as fears of an immediate action against Syria appears to have died down and numbers yesterday suggested global manufacturing has seen a turn. Among indicators we have a bullish picture as stochastic push overbought and macd’s continue to head up while EMA lines are poised at developing golden crosses. In 4H charts we have a ‘Mat Hold’ bullish continuation pattern while stochastic crawls overbought and macd pushes up. Hourly charts has stochastic crawling in overbought levels while macd is looking for a bullish cross. For the moment intraday charts appear to be overextended following yesterdays breakout. We prefer looking for a buy on dips to the daily pivot. Alternatively look for a break higher at the open of European markets.

GBPUSD
Resistance: 1.5568 minor / 1.5590 moderate / 1.5716 moderate
Support: 1.5523 moderate / 1.5500 psychological / 1.5483 moderate

Despite a sharp drop in holiday hit North American markets we have GBPUSD still with a bullish daily candle as we bounced off the EMA lines continuing a pattern of higher highs and higher lows. Daily indicators continue to look mixed with stochastic heading up and macd’s pointing lower. Note we have prices oscillating around the daily pivot. In the lower time-frames we are seeing mixed signals as 4H charts show stochastic heading lower and macd heading up above the zero-line to suggest a bullish trend. Hourly charts for now has a confluence of bears. For the moment we have an indecisive intraday picture and prefer to remain sideline. Look for a close above 1.5480, the daily pivot to signal a bullish resolution of the current indecisive action.

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September 2nd, 2013 @ 1:51 am by Mark De La Paz

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AUDUSD
Resistance: 0.8957 minor / 0.8978 minor / 0.9012 moderate
Support: 0.8922 minor / 0.8893 minor / 0.8875 moderate

Despite a bearish close Friday, a Chinese Manufacturing PMI released over the weekend has Aussy gapping up at the open already pushing through its R1 from pivots for a possible mean reversion, the 21D EMA at 0.9012. Daily indicators has stochastic crossing up coming off oversold areas while macd is bottom out. Intraday we are seeing a confluence of buys among the macds with both hourly and 4H charts heading for the zero-line, while stochastic sees the former overbought and the latter coming out of oversold areas. Numbers coming-out of Australia so far also support the notion of a strong Aussy with the AIG manufacturing Index seeing a marked improvement to 46.4 from 42.0 previously. We are also waiting for Building Approvals and Company Operating Profit figures at 0130GMT with strong reads an excuse for a follow through rally to the 21DEMA, projected highs are at 0.9019 just above the said level. Look for a close above R1 at 0.8940 as your entry.

EURUSD
Resistance: 1.3216 moderate / 1.3259 moderate / 1.3278 moderate
Support: 1.3178 moderate / 1.3144 minor / 1.3103 moderate

Friday ended up as a hammer for Euro as we saw a late bounce ahead of along weekend in the US. Still we’ve triggered a daily level double top with the weeks open already gapping lower and indicators suggesting we look for further weakness as stochastic pushes oversold while we have macd pushing under the zero-line suggesting we look for follow through weakness. In the lower time-frames we have a bearish bias with 4H charts showing a confluence of bears stochastic just crossing lower while macd is flat right around the signal line. Hourly charts has stochastic poised to push oversold and macd flat above its signal line though still below zero. Note target for the daily double top is at 1.2975. Look for a close under S1, 1.3178, to get the sell-side going or a rejection from 1.3216,the daily pivot.

EURJPY
Resistance: 130.22 moderate / 130.51 moderate / 130.80 minor
Support: 129.78 moderate / 129.29 moderate / 128.90 minor

At the close we still had a bearish candle for EURJPY though with less hawkish talk out of the US and encouraging releases over the weekend we have started the week on a bullish gap to the middle of Fridays real body. Indicator wise we are seeing mixed signals as stochastic comes off oversold levels while macd is poised to cross lower. From the 4H picture we are seeing a confluence of buys as macd begins to open up while stochastic is well on its ways higher and macd is opening up. Hourly charts for their part is already overbought according to stochastic and macd is poised to cross-up through the zeroline. Immediate risk calls for further gains though the absence of a bullish reversal pattern suggest caution. We prefer getting a bounce from the daily pivot, 129.78, alternative entry will be on a close above 130.22.

GBPUSD
Resistance: 1.5517 minor / 1.5547 moderate / 1.5581 minor
Support: 1.5499 minor / 1.5463 moderate / 1.5429 moderate

After seeing a spinning top Friday we have Cable opening higher with the gap starting us at the 21D EMA for the week and price action suggesting we get a follow through. From indicators we are seeing a mixed view n intraday charts with stochastic heading up and macd’s still pointing down. In intraday charts we have a confluence of buys with 4H stochastic poised to push overbought and macd just seeing a bullish crossover looking to make a move on the zeroline. hourly charts has stochastic crawling overbought and macd just pushing up through the zeroline. Note our daily fractal remains valid with our sell-off the past two weeks looking like a healthy pullback. With the pattern of higher highs and higher lows we view the previous wednesday as our latest higher low and the push through the 21D EMA as the start of our next surged to another higher high. A close above R1 would make a good excuse forgoing long.

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August 30th, 2013 @ 1:52 am by Mark De La Paz

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AUDUSD
Resistance: 0.8968 moderate / 0.9000 moderate / 0.9031 moderate
Support: 0.8935 minor / 0.8892 moderate / 0.8849 moderate

Aussy continues to indecisive trading with Thursday getting a spinning for a daily candle as ranges continue to tighten. From indicators we also see mixed signals as stochastic show a bullish divergence while macd is heading lower. Note we have Private Sector Credit coming out at 0130GMT with consensus forecast at 0.4%. We will look at the numbers as a catalyst for getting out of the indecisive trading, a read well below consensus should open up the swing lows at 0.8849. Strong figures will be an excuse for mean reversion to the daily EMA lines. Intraday we are seeing a confluence of buys from multiple time frames with hourly stochastic pushing for overbought levels and he 4H coming off oversold areas. Evan as macd see anew bullish crossover in hourly charts and continue to head up in the 4H picture.

GBPUSD
Resistance: 1.5511 moderate / 1.5547 moderate / 1.5592 moderate
Support: 1.5486 moderate / 1.5448 minor / 1.5428 moderate

Given the broadly firmer dollar Cable was unable to get a follow through rally to Wednesday’s hammer and long tail from the 55DEMA lines. Stil we have a fractal pattern now in the daily charts reinforcing the idea of a bullish reversal. Daily indicators however are still mixed with stochastic heading up and macd dropping for the zero line. In 4H charts we have a confluence of buys with stochastic seeing a new bullish crossover and macd heading up though barely above its signal line. Hourly charts for their part has a confluence of buys with stochastic seeing a new bullish cross and macd heading up for the zero line. At the moment we retain a bullish bias for Cable though getting the markets to rally could be difficult given the geopolitical risks we face now. Although we expect Cable to fare better than most majors should US air strikes in Syria happen. Look for a close above 1.5511 as a bullish entry.

USDJPY
Resistance: 98.47 moderate / 98.74 moderate / 99.15 moderate
Support: 98.09 moderate / 97.84 minor / 97.66 moderate

USDJPY rallied past the daily EMA’s Thursday on the back of a follow through for equity indices though we now have the bearish resistance line from July 7 on top of prices. Indicator wise we have a confluence of buys with stochastic heading up and macd looking to push through the zero line. From the 4H level we have mixed signals as stochastic comes off overbought levels while macd is heading up. Hourly charts see a confluence of bears with stochastic poised to push oversold and and macd dropping.  Note price charts show a double top in the daily picture. At the moment we are looking for a close under the daily pivot at 98.09 break of which should see us head back under the daily EMA lines.

EURUSD
Resistance: 1.3265 moderate / 1.3311 moderate / 1.3343 minor
Support: 1.3230 minor / 1.3205 moderate /1.3164 minor

Thursday saw a follow through sell-off in EURUSD as we pushed through he daily EMA lines to close under the 55D EMA after starting above the 21D EMA. We have formed a daily level double top out of the August price action. Among indicators we have stochastic pushing into oversold territory while macd is opening lower some more heading for the zero line. In the lower time frames we candlesticks suggesting lost momentum with a series of spinning top since New York trade. Indicators show stochastic in the 4H picture looking to come-off over sold levels while macd remains bearish. Hourly charts are similarly mixed with stochastic poised to move oversold and macd heading up. For now there is little sense of urgency through triggering the daily double top is an attractive proposition as we are set to close the week with a bearish engulfing and the month with a shooting star. Look for shorts on a break of 1.3205 pattern trigger theoretical target is at 1.2959.

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August 29th, 2013 @ 2:12 am by Mark De La Paz

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EURJPY
Resistance: 130.51 moderate / 130.71 minor / 131.03 moderate
Support: 130.19 moderate / 129.84 moderate / 129.62 minor

Wednesday turn-out to be consolidation day after Tuesday’s big rout with the days range failing to even see the halfway mark of the real body for the previous black candle. Daily indicators see a confluence of bears with stochastic pushing further into oversold areas while macd has a new bear cross and prices for the moment attempt to get back under the EMA lines once more. Note we are forming a double top that spans July and August, the trigger at 127.96. From the lower time-frames we have mixed signals as 4H macd see a new bullish crossover while stochastic is looking to crosslower and we have price action looking for a break of our NY range play. Hourly charts has stochastic heading lower while macd has flattened out just around the zero line with the signal line beneath it. Look foraclose below the daily pivot at 130.19 to start off our follow through drop.

EURUSD
Resistance: 1.3345 moderate / 1.3363 minor / 1.3386 moderate
Support: 1.3293 moderate / 1.3252 minor / 1.3231 moderate

Euro managed to close just above the 21D EMA Wednesday following a sharp sell-off that saw lows below the said area. Indicators see a confluence of bears from he big picture as stochastic show a new bear cross and divergence while macd’s begin to open lower after staying flat above the zero-line the past two weeks. In intraday charts we are seeing mostly mixed signals with a new bullish cross in stochastic from the 4H picture while macd has pushed under the zero-line. Hourly charts has stochastic in oversold levels while macd is below zero and flat above the signal line. Note that our daily close is below the 61.8 Fib retracement level of our sell-off for the year, while the weekly candle is forming a bearish engulfing. This suggest our break of 1.3417 last week maybe false and we risk follow through weakness.

GBPUSD
Resistance: 1.5543 minor / 1.5576 moderate / 1.5597 moderate
Support: 1.5502 moderate / 1.5480 minor / 1.5451 moderate

Cable has a hundred pip for the Wednesday candle more than the daily average as we get a hammer for a candlestick pattern with lows sticking down to the 55D EMA and the close above the 21D EMA. Among indicators we continue to see mixed signals with stochastic coming off oversold levels while macd is heading lower. Note we have opened the day above the daily pivot at 1.5502. From the 4H picture we are seeing a confluence of buys with stochastic poised to push overbought while macd sees a new bullish cross. Hourly charts for their part are mixed with stochastic failing to push overbought and macd just under zero looking to move up. We have little sense of urgency but given the daily picture bias is for further gains. Consider buys on a dip to the daily pivot at 1.5502 or on a push above 1.5543.

AUDUSD
Resistance: 0.8978 moderate / 0.9000 psychological / 0.9040 moderate
Support: 0.8935 moderate / 0.8901 moderate / 0.8849 moderate

In the end we have a high wave candle for Aussy a qualifiable ‘dragon fly doji’ with a long tail sticking out below the 0.8935 support area. Daily indicators remain bearish with stochastic looking for apush down through the oversold threshold while macd is below zero and heading lower. Price action however suggests a possible turnaround with the calendar providing enough catalyst New Home Sales and Private Capital Expenditure. In the lower time frames we have bullish continuation patterns in the making in 4H charts while macd has a new crossover for the upside and stochastic is poised to go overbought. hourly charts for their part is looking for a bullish breakout of its congestion from NY trade. With the immediate risk calling for buys we look forward to Australian data providing an incentive for bulls to jump in and see mean reversion. Weakness in Aussy figures will have us looking for a close under 0.8935, the daily pivot, before shorting.

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August 28th, 2013 @ 1:40 am by Mark De La Paz

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USDJPY
Resistance: 97.36 moderate / 97.70 minor / 97.91 moderate
Support: 96.85 moderate / 96.34 moderate / 96.12 minor

Tuesday saw USDJPY push back under the daily EMA lines following another sell-off in US equities this time with European equity indices also triggering bearish reversal patterns in the daily charts. Among indicators we have daily stochastic poised to push into oversold levels while macd is also in the process of crossing lower beneath the zeroline. In the lower time-frames we have mixed signals with 4H stochastic oversold and macds dropping while hourly charts has a confluence of buys. Note we see a bullish engulfing pattern in the making for both hourly and 4H candlesticks. At the moment we appear to be seeing a technical correction as prices bounce off our moderate support while the Nikkei is also bouncing after the earlier sell-off in its futures. Immediate risk appears to be for a bounce in USDJPY through we will look for signs of distribution, a bear signal, from 97.36 and 97.91.

EURJPY
Resistance: 130.32 moderate / 130.71 moderate / 131.04 moderate
Support: 129.66 moderate / 129.29 minor / 129.06 moderate

EURJPY is among the biggest loser in yesterdays trade with hardly a wick or tail as we saw a follow through to the bearish engulfing pattern Monday. From indicators we have prices crashing through the daily EMA lines while stochastic is poised to push oversold and macd’s cross lower. Intraday we are seeing signs of a pullback as hourly stochastic and macds see new bullish cross-overs with stochastic just coming off oversold levels and a bullish divergence forming. In the 4H picture we have stochastic crawling oversold while macd has also just pushed under the zeroline. Candlestick charts are also showing bullish engulfing candles. Immediate risk is for a technical correction though our preference is to look for shorts off 130.32 and 130.99.

GBPUSD
Resistance: 1.5555 moderate / 1.5597 moderate / 1.5638 minor
Support: 1.5524 moderate / 1.5486 moderate / 1.5465 minor

Cable saw a sharp sell-off and a big bounce in Tuesday trade to close with along tail sticking out below the 21D EMA and a moderately sized bearish real body. Among indicators we have stochastic coming-off oversold levels while macd is also heading lower. From the lower time frames we are seeing mixed signals with stochastic poised to push oversold in the hourly picture while macd is bullish looking to push up above the zeroline. This as 4H charts has stochastic heading up and macd with a new bear cross. Given the mixed signals we prefer doing a straddle with buys stops above 1.5555 and sell stops under 1.5524.

AUDUSD
Resistance: 0.8993 moderate / 0.9040 moderate / 0.9063 moderate
Support: 0.8941 minor / 0.8909 moderate / 0.8849 moderate

Aussy has a bearish open bozu in the daily candlesticks as we see a follow through to the rejection from daily EMA lines and the double top break-outpoint of mid August. Daily indicators has stochastic poised to push oversold and macd’s easing further below the zero line. In the lower time frames we have mixed signals with stochastic coming off oversold levels while macd is dropping in 4H charts. From the hourly picture we have more indecision as macd se new bearish crosses while stochastic is poised to cross higher. Given these we prefer remaining sidelined though shorts may be taken from under 0.8993 or on a push below 0.8941. Daily candlesticks suggests we look for a drop to the previous swing lows at 0.8941.

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