Technical Analysis of the Financial Markets

Forex

Forex Technical Analysis

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EURUSD Technical Analysis – EURUSD rejection at resistance.

EURUSD Technical Analysis – EURUSD rejection at resistance.

Forex, Latest
EURUSD Technical Analysis The EURO has rallied against the US Dollar from the low in December 2016. Today it reached the resistance level at 1.1720 created by the high in August 2015. The touch of this level has created a pin bar candlestick pattern with the daily high touching the 1.720 area to the pip. The rejection of this level opens up the opportunity to short this currency pair with a medium to long term holding. For confirmation of the short trade we should look for a break of an ascending trend line underneath price on the lower time frames. In this particular trade a break of an ascending trend line on the 4hr charts should be sufficient. To add confluence to this trade set up we also have the Relative Strength Index showing over bought conditions as shown in the cha...
AUDUSD Technical Analysis – AUDUSD surges into weekly supply.

AUDUSD Technical Analysis – AUDUSD surges into weekly supply.

Forex, Latest
AUDUSD Analysis So far this week the Australian Dollar has surged against the US Dollar, adding further gains to last weeks rally. This surge in price has highlighted a major potential turning point in this financial instrument from which to place a counter trend trade and bag some pips. We have a triple confluence trade set up forming. Price has risen inside the weekly supply zone from which we saw a drop in May 2015. This area is likely to contain a significant amount of sell orders from the large institutions hoping to short at a bargain price. We also have the trend line (blue) which price has broken and tested many times in the January 2016. Price action around this trend line is of high importance to confirm the short. To round up our reasoning behind selling this pair we ha...
Bitcoin Technical Analysis – Bitcoin takes a dive, further downside projected.

Bitcoin Technical Analysis – Bitcoin takes a dive, further downside projected.

Forex, Latest
Bitcoin sustained a significant sell off on Friday, dropping from $2210 to a monthly low of $2000 against the US Dollar. In my previous analysis of Bitcoin here I correctly predicted the sell off from the $2600 area and we are fast approaching our take profit down around $1900. The $1800 level, our last rally point, will contain a large proportion of buy orders which should see price rise in the short term. With Bitcoin being relatively young as a financial instrument the application of trend lines on the larger time frames seems less than fruitful when catching a turning point in the market. Therefore any traders buying around the $1800/$1900 level should proceed with caution with regards to long term profit targets. To add weight to the possible turning point, we have the Re
USDJPY Technical Analysis – USDJPY Triple Confluence Short Trade Setup

USDJPY Technical Analysis – USDJPY Triple Confluence Short Trade Setup

Forex, Latest
USDJPY Technical Analysis The Japanese Yen has reacted to yet another day of selling pressure and lost considerable ground against the US Dollar. We are nearing market close and the US Dollar is up almost 0.90% in daily trading. In reference to my previous analysis here where we correctly predicted the rise from demand and have taken profit as we enter the next supply zone. We are now ready to look for shorting opportunities. This entry into a strong supply zone has led to short trade set up forming. We have 3 areas of confluence to support this decision as listed below:- Entry into supply zone as highlighted on the chart. Hit of the upper descending trend line. Relative Strength Index approaching over bought conditions on the daily time frame. These 3 confluences ad
AUDJPY Technical Analysis – JPY loses value as investors pile into the AUD.

AUDJPY Technical Analysis – JPY loses value as investors pile into the AUD.

Forex, Latest
This week the Japanese Yen showed continued weakness across a number of currencies. The rise in price in Australian commodities strengthened its value which subsequently saw the AUDJPY rally for 5 consecutive days. AUDJPY Technical Analysis As you can see from the chart, this strong week long rally has brought price up in to a strong supply area. Price consolidated around this price area in the middle of March before selling off strongly. Logic suggests that as we re-enter this zone we should pick up some awaiting sell orders which will cause momentum to reverse and price to retrace. Price overall is in an uptrend, but this opportunity to pick up pips in a counter-trend should yield good results. The Relative Strength Index is showing over bought conditions adding further weigh...
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