GBPUSD 30/12/2013

The pair rallied on Friday, just hours before it came crashing down, creating a bearish dark cloud cover signal on the 4-hour chart. On the 1-hour chart, the market has closed just slightly below 18 December’s high ($1.6480), as well as below the Fibonacci Extension level of 0.618.

With the bearish candlestick signal on the 4-hour chart, rally of the DXY, along with the market closing just slightly under $1.6480, it is a good opportunity to short this currency pair. For those who are more conservative, I would suggest waiting for the 10SMA to cross below the 20SMA before shorting it. 

GBPUSD H4 Chart

GBPUSD H1 Chart

US Dollar Index 30/12/2013

The US dollar index has bounced strongly from the low on 10 December just before the markets closed for the weekend, indicating strength in the USD. The bullish USD can be exploited by shorting GBPUSD and AUDUSD for the upcoming week. Kindly refer to their respective charts for a more in-depth analysis.

AUDUSD & USDJPY 26/12/2013

Merry Christmas everyone!

Today's post will be on AUDUSD & USDJPY!

AUDUSD

This pair has been rallying for the past week or so, forming a bullish trend line. While the pair has corrected itself on 23 Dec, it is supported by the 38.2 Fibonacci retracement level along, and is now cruising along the trendline. With the 20SMA just about to cross the 50SMA on the H4 charts, I would give say that it is a good time to long this currency pair when the market resumes operations.

USDJPY

I believe that this pair has been on the 4th wave of the Elliot Wave, and is resuming its rally on the fifth leg of the wave. I believe that this pair will continue its rally to 105.72 before correcting itself.

Update to the blog!

Hello everyone. It has been sometime since I have posted an entry in this blog. I apologize for doing so because I haven't been all free to post a new entry. The previous readers of my blog will know that I usually take screenshots from MetaTrader and post the links here to view. After discovering a new website called Trading View, I will be using charts from that website to showcase my trading plans.

That being said, let's move on to the technical analysis!

USDJPY

This pair has been rallying for the past few weeks and it seems like it is not stopping! On Tuesday (10/12/2013). the pair reached 3 December's high and retraced back to the 0.618 level before hitting a daily high of 103.908. The Yen then ended the week back around the 0.236 Fibonacci level of 103.221. Being a strong believer of Fibonacci retracement and extensions, I would say that this pair would continue its rally to the 1.618 Fibonacci level, which is still some distance from last week's closing. The projected take profit price would be around 104.740 (Fibonacci Extension Level 1.618).

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