Trade Pattern-Ideas

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Mon, 07 Apr 2014 07:49:57 GMT

AUD/NZD 1D Chart: Double Bottom

Four weeks ago there were signs that AUD/NZD was forming a bearish channel. However, as the support at 1.0566 did not let the currency pair to extend the decline, there are now more reasons to believe in emergence of a double bottom pattern. In this case the key supply area is the neck-line at 1.0945. If the Aussie manages to

Mon, 07 Apr 2014 06:27:06 GMT

USD/HKD 1H Chart: Descending Triangle

A sharp decline performed by the U.S. Dollar against its Hong Kong peer started in mid-March when the currency couple reached a one-month high of 7.7676. This peak also was a starting point of the 335-bar long descending triangle pattern that sent the pair to a one-month low of 7.7561. At the moment, the instrument is trading within the area bounded

Mon, 07 Apr 2014 06:24:24 GMT

AUD/NZD 1H Chart: Channel Up

Having plunged to a two-month low of 1.0547, the Australian Dollar commenced appreciation against the currency of the neighbouring country, the New Zealand Dollar. The advance has been developing in the bullish corridor that has been in place for 256 hours. Now the currency couple is fluctuating slightly below the 50-hour SMA at 1.0807 but the instrument may overcome this formidable

Mon, 07 Apr 2014 06:24:13 GMT

USD/ZAR 1H Chart: Channel Down

After trading at elevated levels during more than two months ended March 20, the U.S. Dollar started to lose ground against the South African Rand. From the fundamental view, we may note that heavy selling pressure stemming from on-going strikes at platinum mines in South Africa seems to have abated thus allowing the South African Rand to recover some losses.

Mon, 07 Apr 2014 06:23:42 GMT

EUR/TRY 4H Chart: Channel Down

The single currency has been in the down-trend against the Turkish Lira since March 20 when the formation of the channel down started. The tunnel being strongly tilted-downwards was unremittingly pushing the pair lower and during two weeks the currency couple lost more than two thousand pips to hit a four-month low of 2.8832. According to the SWFX data, bears are

Fri, 04 Apr 2014 12:38:04 GMT

EUR/HKD 1H Chart: Channel Down

Starting from mid-March the Euro has been generally underperforming relative to the Hong Kong Dollar. This has led to formation of the bearish channel, meaning a deeper sell-off is a likely scenario. However, the pair is approaching the lower falling trend-line at 10.5759, a touch of which could trigger a correction. If this is the case, EUR/HKD will be expected

Fri, 04 Apr 2014 12:37:55 GMT

GBP/AUD 4H Chart: Channel Down

On Mar 3 GBP/AUD topped out at 1.8828 and since then it has been on the decline, losing more than nine figures. At the same time, the pair has formed a bearish channel, which implies the resistance at 1.8053 and the support at 1.7681. Considering that the Sterling has recently touched the former level and most of the technical indicators

Fri, 04 Apr 2014 07:23:07 GMT

AUD/USD 4H Chart: Channel Up

We have recently examined a double top pattern shaped by AUD/USD but today we will focus on another pattern formed by the same instrument-a channel up. In the very end of January, AUD/USD plunged to a five-year low of 0.8662 that provoked a sharp appreciation, amid which the bullish tunnel occurred. Now AUD/USD is struggling at the 50-hour SMA at

Fri, 04 Apr 2014 07:22:52 GMT

GBP/USD 4 Chart: Channel Down

During more than six months ended in mid-February, the British Pound was appreciating versus its U.S. counterpart and on February 17 the pair hit a five-year high of 1.6828 that became a starting point of a long-lasting decline. The drop has been mostly developing in the channel down pattern started in the very end of the winter. Currently, GBP/USD is

Fri, 04 Apr 2014 07:22:40 GMT

USD/HKD 1H Chart: Double Bottom

A rise to a two-month high of 7.7677 on March 14 pushed the USD/HKD into a 314-bar long double bottom pattern, where the currency couple is trading now. At the moment, the pair is attempting to consolidate above the 200-hour SMA at 7.7575 that represents a critical level since a jump above it will take USD/HKD closer to the neck-line

Fri, 04 Apr 2014 07:22:30 GMT

EUR/USD 1H Chart: Channel Down

The single European currency started to lose value relative to the U.S. Dollar after reaching more than a two-year high of 1.3968 in mid-March. Since then, EUR/USD has been trading in the down-trend that has been developing within the boundaries of the 209-bar long bearish tunnel. Now the pair is sitting close to a one-month low of 1.3698 but may

Thu, 03 Apr 2014 14:43:16 GMT

EUR/CAD 4H Chart: Channel Up

Comment: We continue observing development of the bullish channel on EUR/CAD's chart. But now there are worrying signs that the lower boundary of the pattern may be broken to the downside, thus invalidating the long-term bullish outlook on the instrument. The currency pair has recently attempted to recover from the up-trend, but was stopped by the long-term moving average, which

Thu, 03 Apr 2014 14:43:10 GMT

AUD/SGD 4H Chart: Descending Triangle

Comment: There is a descending triangle emerging on the four-hour chart of AUD/SGD. And even though the pattern consists of a small number of candlesticks, which decreases its quality and reliability, both the horizontal support line and down-trend resistance line seem to be respected by the market. However, the currency pair is approaching the apex of the triangle, meaning there

Thu, 03 Apr 2014 06:50:17 GMT

USD/CHF 1H Chart: Channel Up

A two-month decline performed by USD/CHF ended late March when the pair entered a bullish channel, within which it is trading at the moment. The formation has average quality and magnitude and is about 195-bar long. According to the SWFX numbers, more than 57% of market participants bet on further appreciation of the pair that means the instrument is likely

Thu, 03 Apr 2014 06:50:06 GMT

CAD/CHF 1H Chart: Channel Up

Like in the previous case, the Swiss Franc commenced depreciation against its peer, the Canadian Dollar, in the second part of March when a drop to a three-year low of 0.7808 underpinned CAD/CHF. Since then, the pair has been on the rise, being locked between two upward sloping lines for more than 235 hours. Now the pair is vacillating not far

Thu, 03 Apr 2014 06:49:59 GMT

EUR/JPY 1H Chart: Channel Up

A short, only 51-bar long, channel up pattern formed by EUR/JPY represents a part of a sharp rally started on March 28. The advance has already sent the pair from a three-week low of 139.97 to a one-month high of 143.47 in less than a week. Now the pair is sitting near the lower limit of the pattern and if

Thu, 03 Apr 2014 06:49:54 GMT

AUD/JPY 1H Chart: Double Top

Another double top pattern formed by the Australian Dollar cross is worth examining today. The trajectory of AUD/JPY is very similar to AUD/USD moves we described earlier-the Australian Dollar started to gain versus the Yen in mid-March and then peaked at a one-year high of 96.06 early April. Now the pair is on the brink of falling beneath the 50-hour

Wed, 02 Apr 2014 12:47:19 GMT

AUD/CHF 1H Chart: Ascending Broadening Wedge

Starting from mid-March the Australian Dollar has been outperforming the Swiss Franc. Since then the currency pair has covered more than three figures and looks to be in a good position to extend the recent gain. One of the reasons to be bullish on AUD/CHF is the fact that it has just touched the up-trend support line, and this implies

Wed, 02 Apr 2014 12:47:16 GMT

NZD/CAD 4H Chart: Channel Up

After a prolonged lull that was observed during last year's November and December, NZD/CAD decoupled from the long-term moving average and commenced a recovery. Since then the currency pair has been forming a bullish channel. Recently, however, the New Zealand Dollar has been undergoing a downward correction. Still, the sell-off should soon come to an end, being that the exchange

Wed, 02 Apr 2014 06:47:15 GMT

AUD/USD 1H Chart: Double Top

The Australian Dollar started to appreciate against the U.S currency on March 20, when the pair embarked upon formation of the double top pattern. About one week later, the pair peaked twice near a one-year high of 0.9305 and commenced a decline towards the neck-line at 0.9218. Currently, AUD/USD is vacillating between the 50-hour SMA at 0.9251 and the pattern's neck-line

Wed, 02 Apr 2014 06:46:09 GMT

USD/DKK 1H Chart: Rising Wedge

During the month ended March 13, the U.S. Dollar was losing ground against the Danish Krone, but in mid-March, the pair entered a bullish formation, rising wedge, that acted as a helping hand aiding the pair to recover some of the previous losses. However, the up-trend seems to have come to an end as USD/DKK plummeted below the lower boundary

Wed, 02 Apr 2014 06:45:49 GMT

USD/SEK 1H Chart: Broadening Rising Wedge

A 238-bar long bullish channel formed by USD/SEK originated at a six-month low of 6.3257 and took the instrument to one-month high of 6.5170 in the very end of March. However, now the pair is on the brink of an accelerating depreciation since USD/SEK has recently broke out of the upward sloping corridor and even the 200-hour SMA sitting

Wed, 02 Apr 2014 06:44:51 GMT

USD/SGD 1H Chart: Descending Triangle

Having attained a three-month high of 1.2794, the U.S. Dollar reversed its trend against its Singapore's peer; the depreciation pushed the pair into a 192-bar long descending triangle pattern that sent USD/SGD to 1.2514, a four-month low, in the last trading sessions of March. Meanwhile, the recent low provoked a rise of the pair that managed not only to jump above

Tue, 01 Apr 2014 15:08:06 GMT

USD/RUB 4H Chart: Channel Down

Following a precipitous two-month rally USD/RUB peaked at 36.72 and since then has been consistently trading within the boundaries of the downward-sloping channel. Right now the currency pair is moving away from the upper trend-line towards the lower edge of the corridor at 34.74. This level is likely to provide enough support to initiate an upward correction, as suggested by

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