An institutional trader told us once about his obsession – trendlines. He even boasted about how wonderful his software was because it had a magnet function, the kind where you could pin your trendline precisely to the tail or close of a candlestick. Why this obsession? Because
Read more →The Aussie completed a Head and Shoulder pattern and broke its neckline before Christmas. Now it is making a pullback move to test resistance. If the neckline makes a successful resistance, the H & S pattern will remain intact and its validity as a reversal pattern is
Read more →Price takes the path of least resistance. So which one is more likely to give? Erwin and I are watching.
Read more →Major currencies continue to lose against the dollar. On a week-by-week basis, we saw that the following: Make new lows – EURUSD, AUDUSD, GBPUSD, AUDJPY, EURGBP, EUDJPY Made new highs – USDJPY, USDCHF Stay in range – NZDUSD Late week, we see EURUSD, GBPUSD, AUDUSD and the
Read more →The US Dollar has risen broadly against major currencies. This is especially true for the Euro and the Swiss Franc. A measure of its success can be seen in the US Dollar Index (DX) which looks at the value of the US Dollar against a basket of
Read more →USDCHF has broken out of a channel within a channel. We wait to see if a throwback is likely before a move to an extended level. Momentum is strong plus we will be looking at Fed rates this week.
Read more →Chart patterns provide a good way to figure out the direction of the market. A good chart pattern offers the following clues to the trader: Hint of market direction Criteria for confirmation Early trade signal All in all, its qualities are predictive, pre-emptive. Let’s look at Aussie
Read more →US retail sales came in better than expected last night sparking a rally in the dollar. With a week-on-week basis, the dollar is particularly strong against the Euro and Swiss Franc by making new highs. Some headlines: Reuters – Dollar Touches 2-Month High Against Euro FX360 –
Read more →A trader asked me about the implications of a trendline break in a currency pair. I want to use this opportunity to recall some TA concepts. Break of trendline is difficult to play – there can be false breaks too. See my posting on Sterling after the
Read more →Recall my posting 8 November 2009 ‘Psychological 87‘. With the action in the past week,this level is now an an important technical point to watch out for the USDJPY. If we look at the weekly chart, Week 49 has given us a strong bullish candlestick that shows
Read more →At the ‘Mind Your Money’ Seminar at Pan Pacific Hotel, Mr Heng Swee Keat, Managing Director of Monetary Authority of Singapore announces that ‘MoneySENSE intends to partner an Institute of Higher Learning to set up a Financial Literacy Institute. Building on MoneySENSE’s work, the Institute will identify
Read more →This is a simple tip for MT4 users. Before: The Fibonacci tools are wonder ful and essential for trading but after plotting them on the chart, price levels corresponding to the Fib levels are not displayed. For illustration, see ”50%’ retracement level on chart. To get the
Read more →The Aussie recovered quickly to its October high after the Dubai World debt panic caused a move in favour of the Dollar. For the moment, December started off strongly by recovering most losses. The action in the past few days built supports at .9100 and subsequently .9230.
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