Dollar Finds Resistance Cluster

Good morning, traders

The Dollar Index has had an active few months and currently sits at an interesting conjuncture which is shown as the shaded area on the chart.  

In the last few days price has cleared the figure, breaking above 8, but is now sandwiched between that and the VI so a continuation up is not as clearcut as it might be.  In addition to the VI price is also approaching a Fib reversal level and there are other factors adding to the likelihood of a further move down rather than continuing the more recent upward trend.

So the recent bounce up has a cluster resistance of a previous resistance/support, two leg extension and VI.  If todays bar closes as a bearish engulfing candle or similiar, we might see a move down.  If not, price may try to reach the VI so it may be worth waiting until this move has played out before taking a trade.  Also bear in mind that Stochastics is showing a false bar in the longer-term down trend.

01-12-2010dollarindex

Good dynamic trading...

Anne Chapman
Dynamic Trader

Downtrend Continuation

Good morning, traders

A pretty good pattern is forming on the EURAUD.  Price has been in a downward trend for some time, with a slight hicup in May.  Since then the trendline has been strong, as shown by the red line on the graph. However, more recently price has been squeezed as longterm support has kept price from falling further. 

Now price is right on the support again and, with the overall trend being down, we might see it break down.  To support this analysis, there is a false bar on Stochastics, meaning we should weight the September rally less than the overall trend.

If you would like to short this pair, then we would recommend using S3 to enter and manage the trade as MoBo has already triggered.

24-11-2010euraud


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Good dynamic trading...

Anne Chapman

S1 but possible resistance pending?

Good morning Traders, Today I am going to offer a mixture of things to analyse, but the one with the chart below is a possible S1 entry on FO, an S&P500 stock. It does have the relevant characteristics, and did infact enter on Friday, but has only just broken the $60.00 figure where it had found resistance in early October and early to mid November, creating a DT formation. Should this continue north, a futher band of resistance could be seen to start at the $63.00 area where former physical resistance has occurred in the past, so do be aware that a possible FBO could be occurring as the weekly TF is around the VI, and divergence is occurring on different timeframes and the RSI indicator is showing an OB reading. However , on the positive side, FO does have TC up, and is a stock of the S&P500 as stated previously, and this index has currently around seventy percent of its stocks above the VI.
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Next I would like to give a few currency options for you to look at, which are currently consolidating to some degree, and could therefore be in a position to break out one way or another in the future, and so could be traded on S1,S3 or types 1 or 2. The AUDZAR, is getting close to the 7.0000 figure with a possible FBO of the triangle formation, the EURJPY has now had two bars positive TC on the HTF and the daily too is correct, whilst it is just below the VI on the daily, and finally, the GBPCAD does have positive TC and is above the 1.6000 figure and the consolidation is above the daily VI but quite a way below the weekly VI. As always please ensure to do your own analysis before trading. Charts courtesy of AdvancedGet. Good luck. Clayton Farnworth.

Swissy DT?

Good Afternoon Traders As the trading week draws to a close, just a quick Friday update from me. I analysed the Swissy earlier in the week and indeed price has continued it's bullishness. As you can see on the chart, price continued to the figure/resistance level and is now showing classic signs of indecision. So could we have a DT on our hands? It would certainly be a welcomed chart pattern in a nice healthy downtrend. Hold your horses though...as the markets prove time and time again, it does what it likes so let's see what next week brings us.
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Wishing you all an outstanding weekend. Abundant Trading! Sonia Molina