The sequence of 3 up weeks ended with the market unable to sustain prices beyond a 50% correction of the fall from this year’s top, 1.0949. The most negative performance for 7 weeks resulted from this price action. This downside stalled on Friday around the 13/100/200 day moving averages and this introduces a note of caution but sentiment is left negative with only the…Continue
Added by Alan Collins on August 18, 2014 at 7:25am — No Comments
Although a new 2 month low was posted in early trading yesterday, Monday’s indecisive price action was followed by profit taking. This bounce created a Bullish Hammer on daily candle charts which, especially ahead of a key 50% correction point, leaves immediate sentiment as positive. The bounce is likely to be temporary, especially while the 13 day average is intact, but sentiment is assessed as positive with potential to 1.6825, 1.6847 and 1.6866.…Continue
Added by Alan Collins on August 13, 2014 at 6:00am — No Comments
Although the bulk of last week's price action showed marginal movement, the week ended with a powerful move higher. Friday’s gains – the most aggressive daily performance since March – dominated price action breaking an important Marabuzo line, testing the top of a now rising Keltner channel and, most importantly, completed a Bullish Morning Star pattern on weekly charts. This formation often signals a complete change of sentiment and so we see potential through .8011 to .8050 with .8124…Continue
Added by Alan Collins on August 4, 2014 at 7:29am — No Comments
Following a week of indecisive trading, last week saw a renewal of investor demand. This continued the rally from this month’s low and took USDCAD to the highest levels for 5 weeks. This move was dominated by Friday’s powerful gains and although a failure to break through the 200 day avg or the Marabuzo line created 5 weeks previously concerns, the support offered by the 13 day avg last week, and a move to the top of a rising Keltner channel gives scope for the upside to extend to 1.0857 and…Continue
Added by Alan Collins on July 28, 2014 at 7:58am — No Comments
A sequence of 2 up weeks ended last week despite initial upside reaching the most positive levels for 6 weeks. This was achieved at the beginning of the week but prices were unable to be sustained above the 200 day moving average and 4 consecutive daily losses were posted into Friday’s close. With the 13 day moving average breached and medium-term signals turning increasingly negative we look for the downside to deepen further.
Potential exists to 1.3477 and even towards 1.3369, a…Continue
Added by Alan Collins on July 7, 2014 at 6:51am — No Comments
The consolidation above the 13 day moving average turned to more significant buying interest yesterday as the average platformed gains. 2 week highs were posted and although almost half of that upside was reversed into the close, the move leaves intraday sentiment more positive. With this underlying tone, but with caution,there is scope for the market to focus on 1.3670 and 1.3694.…Continue
Added by Alan Collins on June 26, 2014 at 6:28am — No Comments
First of all I will talk about divergences.
Ok, all of you or most of you have heard about divergences.
Divergences are the most underrated or underlooked price patterns but trading divergences can give you a high rate of winning trades with high risk/reward rate.
For divergences we need an oscilator. Any oscilator will do but I use RSI with 14 period. I have used RSI with 9 period but is to fast. Many other traders use other oscilators but in my trading system I need…Continue
A 3rd up week in succession was posted in CABLE last week although the scope of the upside was significantly less than the preceding week.
That was due to profit taking attempts above the psychological level of 1.7000, at the highest levels traded since Oct 2008 and with signals for sentiment at overbought extremes.
But although the…Continue
Added by Alan Collins on June 23, 2014 at 7:51am — No Comments
The gradual decline from April’s top stalled, and reversed last week. These gains, although dominated by Monday’s turnaround in investor sentiment, regained more than 3 weeks of downside, traded and sustained levels above the 13 day avg and took USDCAD to the top of an increasingly positive Keltner channel.
A note of caution is introduced by the last 2 days stalling but signals for sentiment are assessed as positive with potential towards 1.1022 and 1.1054.…Continue
Added by Alan Collins on June 9, 2014 at 6:31am — No Comments
Investors bought the cross to higher levels for a 3rd day in succession. However, although the market traded comfortably through the key 13 day avg, levels beyond that point were not maintained into the close. So despite this week's gains so far, it is the failure to extend beyond that point that signals a weakness of demand.
Coupled with the underlying negative tone reflected by the steady decline from March's high we look for a renewal of selling pressure with scope to .8104 and…Continue
Added by Alan Collins on May 30, 2014 at 6:16am — No Comments
Following 2 days of indecisive trading, buying interest returned to Bunds yesterday. This kept prices above the trend defining 13 day moving average and confirmed the impact of the Marabuzo line created 2 weeks ago. Trading is likely to be increasingly volatile but with the Keltner channel again trending higher the likelihood is for a retest of the contract high at 146.76, perhaps even 146.97.…Continue
The steady decline from last week's highs, and levels beyond the 13 day moving average, deepened yesterday. Net losses were modest but the underlying emphasised by the production of a 3rd down day in a row. Sentiment is oversold and until this month’s base is exceeded signals cannot be strong but sentiment is mildly negative with potential through 1.0814 to 1.0795 and 1.0777.Continue
Added by Alan Collins on May 27, 2014 at 6:19am — No Comments
It is a forex signal with higher risk / reward ratio of 1:2, great to be executed on our binary options platform and forex trading.
The rejection of this month’s 2 ½ year highs, and the break of a trend of higher weekly lows, deepened last week. A 2nd down week in a row took EURUSD to 3 month lows, through the 100 day average and the bottom of the daily Ichimoku Cloud. Although the last 3 days saw consolidation above the 200 day moving average, sentiment going into this week is negative and further downside is targeted with potential to test the 200 day moving average and 1.3600, a 76% correction level.…Continue
Added by Alan Collins on May 19, 2014 at 7:09am — No Comments
The background in GBPUSD remains last week's Bearish Inverted Hammer. Monday’s rally proved limited – unable to close above the 13 day moving average and failing at Friday’s Marabuzo line. The subsequent renewal of selling produced a 4th down day from the last 5 and although oversold extremes have produced profit taking in Asia we currently look for bounces to be limited with potential for renewed downside to focus on 1.6819…Continue
Added by Alan Collins on May 14, 2014 at 6:19am — No Comments
The Marabuzo line 4 weeks previously acted as a platform that took EURUSD to 2014 highs last week. However these extremes were sharply rejected last Thu with the decline extended Fri. Prices have broken a trend line of higher weekly lows and the 13 day avg and although the fall stalled at the 100 day m.a, sentiment is negative with potential to 1.3673 and then 1.3600, an important 76% correction point.…Continue
Added by Alan Collins on May 12, 2014 at 6:58am — No Comments
Although EURGBP traded to our 1st upside target Tue, gains above the 13 day moving average proved limited. The resulting reversal proved the relevance of that avg with selling pressure taking prices through an important Marabuzo line and a 76% correction to this year’s upside. Although sentiment is now oversold, providing potential for profit taking, the focus remains on the downside with potential to .8191, .8174 or even .8158.…Continue
Added by Alan Collins on April 30, 2014 at 6:14am — No Comments
Trading has been broadly muted this week - a hangover from the Easter weekend no doubt but was again volatile (inside a narrower range than usual) in EURUSD although still caught at the top of the Ichimoku Cloud. A 3rd positive day in a row resulted, with the lows of the day rejected, but without the momentum to retest this week’s top.
This lack of follow through means that sentiment cannot be strong but the downside rejection is
assessed as the main backdrop element with…
Added by Alan Collins on April 25, 2014 at 6:22am — No Comments