Forex Blog - Currency Trading Online

USDINX Back At Top Of Descending Wedge

USDCAD Testing 1.1637/54 area. Named Line Alert Set

I may want to trade an extension above theName Line Alert.

Support Line Broken On Late Afternoon Run

Though it hasn't led to a trade yet, I used the Named Line Alert, that I programmed for my charts to notify me that the support line had been broken. I really like this script because it makes it so that I don't have to keep watching my charts. In fact I was having an extended lunch with a friend from San Jose and I received the SMS message. The coolest part about it is that I can also make it actually take a trade for me. However this time I just wanted an alert sent to me. This support line if closed below could open the way to a much deeper Retracement. In fact I have another Named Line Alert set on the Daily chart to trade the head and shoulder set, or the Double Top, which ever you like. Either way I'll be looking for a break and a close below the support lines.

USDCAD Holds Above 1.1550, 1.1600 Next Shelf

If the USD can hold the CAD over 1.1600, the top side just may have some legs. 1.1800 and 1.2000 would be BIG targets to the north. It's amazing the Cad strength has held up this long. It's also been impressive that the BoC could hold off on QE all this time. I guess only time will tell about the damage created by the CAD to its manufaturing sector/exports. On the oil side of things, it is currently down almost 3.75%, belwo 67.00. I read a headline this morning that

EURUSD Second Hourly Candle Pressuring 1.4000 Key Support

For a second straight hour the 1.4000 line is coming under selling pressure, price as low as 1.3993 so far. A clear break here opens up further 1.3900 - action. Again, thin markets, so trade lightly.

EURJPY Back Below BB Center Line

A close below this line may send longs for the doors and bolster a short outlook for the pair. Though I am a technical trader, I paid attention to the NFP release this morning and it certainly coincides with recent posts and expectations that it would be worse than expected. I may enter a short for the bottom line after today's close below the center line. I did caution traders this morning on Thin Market conditions, so I may heed my own advice and wait till Monday to initiate a trade.

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USDINX Back At Top Of Descending Wedge
You may remeber this chart form yesterday.

Well here is what it looks like this morning. The break higher did happen and the small dotted Resistance line was no problem on the way back to the top over night. From here out though may be a different story. We have had a single test to the top side that broke the resistance line but no close above it yet. The EUR is taking a beating this morning in NY trade and it finally seems that it is getting through to investors that this is going to take a long time to get out of and the recent exuberance may have been overdone. Risk should suffer, bolstering the USD and JPY, hammering the EUR and the GBP.

EURUSD Running Into Strong Support

The current action around the first support level may take a bit to clear given the change in sentiment that may be underway, when it happens it may be a single pop and head straight to the lower line. Thin market conditions with a US and CAD long holiday weekend could create volatility, ripe for someone to get in a final blow to the top side that would quickly be erased when they took profits or a maniac push lower. These kinds of market conditions are best left alone. Entering trades could be dangerous but if you came into the day already loaded, hanging on may prove worthwhile, if you end up being in the right direction that is. The two peaks in price action over the last few days a just a little too far apart to call a double top, but they look good to me as signal the top side may be over.