Technical Analysis

Technical analysis of forex, commodities and precious metals with trade signals where applicable.

Weekly Currency Index Technical Analysis – 05 January

Weekly Currency Index Technical Analysis – 05 January

Technical Analysis
Currency Index Notes AUDLFX Bearish flag on weekly with reversal near 127.2%. Expecting a rally to 100% - 78.6% correction. No strong candlestick patterns noted Conclusion: Medium term bullish correction on a larger bearish trend. CADLFX Price broke out from a medium term trend line, dipped to retest break out level and resumes uptrend. Price action tricky as 3 weeks ago, PL pattern was formed, followed by last week's bearish engulfing/DCC pattern. Price above 52 EMA, so we could see a decline to test the 52 EMA + trend line confluence. Conclusion: Short term bearish on a larger bullish price action CHFLFX Price broke out from a major rising trend line, indicating a bearish shift to sentiment. After break out, price rallied to retest the break out l...
GBPNZD Daily Outlook, 06/08/2014

GBPNZD Daily Outlook, 06/08/2014

Technical Analysis
I will like to show you a setup on the GBPNZD on the daily timeframe, the price movement that it has been given this past few days has been sort of enticing so if you are part of those that loves nice setup to trade with, then here it is because this will span over a several days. In the image above, you can see on the daily that price tested the previous level which was the 4th June which led to price to move straight down to the levels below where it rallied before heading back up. Now price is repeating itself again when price got back to that level on the 29th simply see what happened... now am still sell biased to this setup that price would still head back down based on the following reason... Price is at a major key level area, price is at the weekly resistance and ther...
GBPUSD – Weekly divergence points to downside correction

GBPUSD – Weekly divergence points to downside correction

Technical Analysis
It is without a doubt that the British Sterling has been one of the strongest performing currencies among the G7 since last year. Although the Kiwi Dollar has been gaining strength, the British pound has been consistent and steady over the year which makes it a prime currency pair to be long on. Since the start of the rally, traders who have been long have been aiming for the 1.7 level. So far, price has failed this level quite a few times, coming as close to 1.6995. While there have been dips during the course of the rally to 1.699 it cannot be justified to call these dips a correction. In this analysis, we present the GBPUSD correction to the downside along with a hedge trade in GBPJPY to offset any risks from the Cable's short term short trade. GBPUSD - Weekly Charts Analysis On th...
Crude Oil Analysis – Aiming for $110

Crude Oil Analysis – Aiming for $110

Technical Analysis
WTI Crude has been caught in a range since March 2014 within the limits of 104 and 98. Within this huge consolidation level, Crude has been making higher highs but the level of 104.53 remains a strong resistance level with price unable to break higher. In the larger perspective, since late 2013, Crude Oil has been rallying and the consolidation paints an ascending triangle pattern which is indicative in this context to be a continuation pattern. The ascending triangle gives a target to 110, with interim levels coming in at 107 and the current resistance of 104.5. The upward path can be charted with the median line, where we notice price hugging the median line, which could point to a short term correction towards the lower median line. After softly breaking the previous high at 104.46,
USDDKK Analysis – A long term short trade opportunity

USDDKK Analysis – A long term short trade opportunity

Technical Analysis
The US Dollar, Danish Kroner makes for an exotic currency pair to trade which usually misses the attention of many forex traders. From a technical perspective, the USDDKK paints a beautiful long term picture with current price action validating the technical pattern that has been formed. Starting with the weekly charts of USDDKK, we notice a very clear Head and Shoulders pattern that is formed, with the neckline coming in at 5.5740 region. The neckline was broken and price did drop a bit before retracing the moves and currently looks poised to test the neckline level. This brings us to the question of entry. While it is no brainer to short USDDKK from the neckline level, taking a more informed trade decision would help traders in gaining a better price for entering the market. ...