After Wednesday’s high wave spinning top we have Kiwi slowly easing off the new historical highs with daily indicators showing a topping off in macd’s and stochastic coming off overbought levels. From the 4H picture we have a confluence of bears as macd drops and stochastic head for oversold territory. Hourly indicators also show a confluence of bears, with macd opening lower and stochastic dropping. We are in the process of taking out a strong support at 0.8678, with bias continuing to call for the sell side of the market.
Following Wednesday’s bearish engulfing, yesterday saw a bearish enough candle to confirm a possible daily level bearish reversal with the three outside down pattern. Among the indicators we have macd topping off and stochastic heading for oversold levels. In intraday charts we are seeing mixed signals though poised to go bearish. Note 4H stochastic appear to be ready to cross lower inline with its macd, in hourly charts we have macd topping off and stochastic dropping. For now look for a close under 1.4280 on a 4H basis before taking action.
Thursday saw a technical rebound courtesy of the EURGBP cross, daily indicators continue to see stochastic coming off overbought levels while macd is rising. Note we did have a dark cloud cover from Wednesday that remains inviolate. From the 4H picture we have a long wick in the prior candle while macd is dropping and stochastic looking for a bear cross. Hourly indicators see stochastic heading for oversold levels and macd topping off. We appear to have a bearish bias overall though with prices just above a support. Look for a push under 1.6343 for a short to 1.6311 then on to the daily EMA lines.
Thursday saw a bounce off the two week-ranging market floor, 126.67 with the candles giving us a hammer at the close. Daily indicators are mixed with stochastic heading lower along with bearish EMA lines while macd is still pointing up. From the lower time frames we have a bullish bias in the 4H picture with macd bottoming out and stochastic heading for overbought areas. Hourly candles are mixed with macd rising and stochastic heading lower. Consider buys from just above 127.08 with tight stops for 127.74 then 128.10.
Daily candles show a dark cloud cover with stochastic coming off overbought levels, macds however are still pointing up. With prices well above the EMA lines, our pattern suggests that its now time to look for a pullback. Intraday we triggered a double top with the push under 1.1012 while indicators in both the hourly and 4H picture see macd’s dropping while stochastic in the former see a new bear cross and is oversold in the latter. Consider shorts from just under 1.1012 for 1.0930, stops at 1.1040.
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