EUR/USD - Stalling Uptrend
21 Oct 2010 Daily update: Price yesterday retraced tuesdays crash. Two good days for pips if you were short at the right time and then also long at the correct time. Price so far today has respected 1.400 as new resistance.
CP interpreted yesterdays move as a bullish engulfing, 12% strength but a double shared with Cable. CP places TP on todays candle up at 1.4150, other side of resistance, with the trend.
I will let price breach 1.4000 before entering, but leaving enough space the other side of this key level to try and avoid any false breaks. I am not around throughout the day so cannot pick the most ideal entry so will have to try and factor this in with my choice of entry.
Long entry @ 1.4030, SL at 1.3970, TP at 1.4150.
MA10 has flattened, signifying a stalling uptrend. This is hopefully about to reverse off todays new daily candle.
As suggested yesterday, price could become rangebound between 1.4 and 1.37, but so far today MA10 has provided some support so lets hope price breaks up throuhg 1.4000 and hits TP later on.
MACD signal lines still looking bearish, warns of potential for price to crash again.
Daily outlook: fresh challenges of 1.4000
AUD/USD - Stalling Uptrend with possible Bearish wedge forming
21 Oct 2010 Daily update: Broadly similar story to E/U: partial reversal of tuesdays crash, however to me the beginnings of a bearish wedge may be forming on the pair.
MACD is definately bearish with the signal lines well spaced and pointing steeply down.
I will wait to see what occurs but based on this potential formation we could be about to see a reveral of the trend although MA50 and 100 are still yet to turn. Remember yesterdays CP daily candle was a double daily bearish 3 Out down (44%) which put price down as low as 0.9456 which is around MA50.
Daily outlook: Watching for further evidence of bearish wedge and watching key support at 0.9660 as if breached price could get as low as 0.9456 over next few days. Price respecting underside of MA10 as support, further strengthening the possibility of a large drop over the next few days.
GBP/USD - Stalling Uptrend
21 Oct 2010 Daily update: Price again retraced againt dollar but I can see the beginnings of a falling channel appearing, which I have drawn on my chart to see if it is respected over the coming days. This pair however is up and down like a fiddlers elbow and has been incredibly 'wicky' of late.
Yesterday CP kicked out a new double daily bearish 3 Out down (44%) putting price down as low as 1.5346 which is down in a major support zone for the pair. If the potential falling channel is forming, this could be the target for the pair and based on the trajectory this level could be hit in around 5 days time. We shall see.
Today CP kicked out a weak bullish candle which has 20% strength but its weakness comes form the r:r and past stats. Not very attractive and may provide further evidence of the large drop which may be aout to occur.
Daily outlook: I feel bearish on the pair.
Last edited by candlesurfer
on Thu Oct 21, 2010 7:06 am, edited 1 time in total.