Fundamental speaking the UK needs a weaker currency. Tough the major devaluation has already taken place, even so, the UK pound have enough room to the downside. In this regard see the Morgan Stanley last report and MigBank report.

In the first picture below, we have the weekly chart. The price is below the kumo. The future kumo is negative. The TS/KS cross is below the kumo. Kijun Sen is near the 4/8 MML and act as a strong resistance and the price have been rejected. The Chikou span…

AUDUSD

The Kumo Break discussed last week has found its way lower as expected, even coming back towards the flat bottom and rejecting off of it twice.  The pair also formed a tenkan-sen kijun-sen cross downward (medium), so the downside move could start to gain traction if it can clear the main lows at 1.0151.  Being that the pair is likely in a …

EURJPY

After peaking at 103.50 about a week and a half ago, the EURJPY has formed two N waves down which is leg 6 of the wave count.  This is hinting there is likely another leg down and the price action confirms that with the last pullback being corrective.  Also, the chikou is below the price line, and there is a thick kumo ahead, so watch for a potential strong downward …

AUDUSD

After closing below the daily Kijun back in late August, the ensuing sell-off stopped midway into the kumo.  It has since then become extremely impulsive (bullish), with the last 4 days reversing and taking out the last 9 days of selling pressure.  This is signaling strength by the bulls and that they have retaken control of the pair.  They will now likely attempt to take out the 1.0600 highs.

From an ichimoku kinko hyo…

Gold

Gaining for the 3rd week in a row (only 2nd time this year), the precious metal took out the $1700 barrier for the first time since March this year, gaining almost $35 on Friday alone.  I suspected short covering on the initial structural breakout back at $1633 and the metal has not disappointed since.  That plus the likely accumulation building over the summer will continue to underpin the metal.

I've been long since $1633…

EURAUD

Today the EURAUD has formed a daily close and Kumo Break (to the topside) for the first time in exactly two months  Virtually all Ichimoku components are bullish with the chikou having crossed the price line, tenkan above the kijun, the kumo break, thus the only things left are for the tenkan and kijun to pierce through the kumo along with the chikou as…

AUDUSD

Forming an inverted pin bar last Friday to end the week, the AUDUSD sold off strongly today on low volume forming a marubozu candle.  In the process, the pair closed inside the daily kumo with the chikou span crossing the kijun line today which further adds to the bearish Ichimoku picture.

With…

AUDUSD

In my last weeks market commentary, I wrote about the Aussie breaking the Kijun-Sen and closing below it on the daily charts for the 1st time, suggesting short term bearish momentum should take over.  This is exactly how it played out with the pair selling off 3 of the next 4 days while even rejecting off the Kijun.…

AUDUSD

Selling off 8 of the last 12 days, the Aussie has been hemmed in by the Tenkan since the 14th of this month which is quite unusual considering its been in a solid uptrend since the beginning of June.  I commented about this last week on how I suggested a break below 1.0400 and the channel bottom (held in…

EURUSD

After bottoming on the year with an engulfing reversal bar, the pair has gained 4 of the last 5 weeks for the first time this year.  The bulls were on parade all last week till they ran into the weekly 20ema before being rejected back 81pips from the highs.  So far this year, the pair has closed all but 3 weeks above…

Now that I have outlined the major components to Ichimoku Time Theory (ichimoku numbers), I want to talk about the 2nd pillar of Ichimok which is the Wave Theory.

Remember, the main pillars of Ichimoku are not the Tenkan, Kijun, Chikou and…

AUDUSD

I am going to comment on this pair from an Ichimoku and Price Action perspective.  Ichimoku first.

Although the pair is above the Kumo and Kijun, it has been sandwiched below the Tenkan for 8 days now. By itself this…

EURUSD

For the last  7 days, the price action for the Euro has been stuck inside a 125pip range playing see-saw with the bulls and bears changing color almost daily.  This could be due to typical August / low volatility, investors waiting for their CB's to hit CTRL+P and help Bank Executives save the ailing banks and…

AUD/USD

Just wanted to do a brief post on this ichimoku kumo break setup for the AUD/USD 4hr chart. I have always talked about many times that when a kumo break occurs with a flat top/bottom ahead, price will often pullback to that flat top/bottom giving you an ideal setup to trade the kumo break and reversal play.

This is a textbook example of a …

EURUSD

After the massive losses in the Euro from mid-April to mid-July,  the pair has been forming smaller price spreads (in the downtrend) while the bulls in the counter trend move are starting to out strike the bears. This to me is suggestive of an exhausted 3-mos down-move finding no new bears (at the moment). This has led to the bulls demonstrating some ability to take short term control as they continue to build higher lows and higher highs with greater…

Traders just wanted to take a moment to help new traders understand the patience that a trade may take based off of your goals and trading style or system. My style is swing trading which requires trades to last at least overnight. In this case my trade has been 2 days and about 56…

EURUSD

After forming a new yearly low last week, the pair produced its strongest 3 day climb (from top to bottom) for the entire 2012 year which is impressive considering the economic situation is far worse than it was in 2011.  I suspect this was more of a short squeeze than anything, and am really just waiting for the shoe to drop (any) which means either Spain asking for another bailout and admitting they are broke, Greece leaving the EZ, or Germany not…

For all those traders interested or currently trading Ichimoku, you will not want to miss this article.

Although I am heading out in a few hours with my girlfriend to Harbin Hot Springs, I wanted to write a brief introduction to Ichimoku Number Theory as there has been a lot of questions (and confusion) about ichimoku settings, time…

AUDUSD

After posting a strong 3 day pullback, the Aussie found strong support at the kijun sen support forming an outside bar in the process.  This also coincided with a short term channel support which has now played out 3x on both ends.  Although the Kijun is currently flat, it held price and combined with the tenkan climbing, I am expecting more…

EURUSD

After forming a corrective pullback last week comprised of an outside bar, a double pin bar and an inside bar, the Euro resumed its natural selling posture and rightfully so considering what is happening in the EZ. The financial cancer in Spain has been metastasizing and is entering what I feel is its terminal phase with every region starting to request bailout funding. The truth is there will not be enough for all of them so something has to…