After testing the support of the upward trend line on 4-hour chart, EURUSD rebounded from 1.3077. The bounce would possibly be resumption of uptrend from 1.2624, further rise is expected later today, and next target would be at 1.3300 area. On the other side, a breakdown below 1.3077 will suggest that a cycle top has been formed at 1.3233 on 4-hour chart, then pullback towards 1.2800-1.2900 area could be seen.
Archive for January, 2012
Being contained by the upper line of the price channel on 4-hour chart, AUDUSD pulled back from 1.0687, suggesting that a cycle top is being formed. Deeper decline towards the lower line of the channel would likely be seen in a couple of days. As long as the channel support holds, the fall could be treated as consolidation of uptrend from 0.9861, another rise towards 1.0900 is still possible after consolidation, and a break above 1.0687 will signal resumption of uptrend.
By Elliott Wave International
Trading using technical indicators — such as the MACD, for example — can do one of two things: help you or hurt you.
Elliott Wave International’s Jeffrey Kennedy explains what he loves and hates about technical indicators and shows you how he uses them to his advantage in this excerpt from his FREE eBook, The Commodity Trader’s Classroom.
By Elliott Wave International
In this video clip, taken from Robert Prechter’s interview with The Mind of Money, Prechter and host Douglass Lodmell discuss "real" money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter’s full 45-minute interview here >>
USDCHF’s downward movement from 0.9594 extended to as low as 0.9156. Resistance is now at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 0.9050 area. On the upside, a clear break above the trend line will indicate that a cycle bottom is being formed on 4-hour chart, then consolidation of downtrend could be seen to follow.
USDJPY broke above 77.32 resistance, and reached as high as 77.84, suggesting that the downtrend from 78.21 had completed at 76.55 already. Further rise could be expected after a minor consolidation, and next target would be at 78.00-78.50 area.
USDJPY is forming a sideways consolidation in a range between 76.55 and 77.32. Lengthier consolidation in the range would likely be seen in a couple of days. Key resistance is at 77.32, a break above this level will confirm that the downtrend 78.21 has completed at 76.55 already, then the following upward move could bring price to 79.00 zone. Support is at 76.55, below this level could signal resumption of the downtrend, then further decline could be seen, and the target would be at 76.00 area.
USDCHF failed to break below 0.9304 support and rebounded from 0.9305 last Friday, however, another fall to re-test this support is still possible later today, a breakdown below it will suggest that the uptrend from 0.8569 (Oct 27, 2011 low) has completed at 0.9594 already, then the following downward movement could bring price back to 0.8850 zone. Initial resistance is at 1.9410, only break above this level could indicate that a cycle bottom has been formed at 0.9305 on 4-hour chart, then another rise to test 0.9594 previous high resistance could be seen.
AUDUSD remains in uptrend from 0.9861, the price action from 1.0448 is treated as consolidation of uptrend. Support is at the lower line of the price channel on 4-hour chart, as long as this channel support holds, uptrend could be expected to resume, and one more rise towards 1.0600 is still possible. On the downside, a clear break below the lower line of the channel will indicate that a cycle top has been formed at 1.0448, then further fall to test 1.0145 key support could be seen.
Other finance sites
Providing free forex articles and trading courses.