USDNOK Approaches Significant Resistance Level

USDNOK 4-hour chart

Since the end of the July the USDNOK has been moving in an expanding range. That range expanded in late September as the USD surged against the NOK, but the price has continued to channel in a large range since. The range is defined by swing highs in September and October at 8.6007 and 8.59803. In […]

CADJPY Enters Short Trade Region

CADJPY 1-hour chart

The 4-hour chart reveals the CADJPY moving sideways since late August. Aside from the August 24 spike low at 87.43, the price ranged between 88.81 and 92.43 through late-August/September. In October the price broke above the September range but failed to advance. As of November 3 the price is back inside the old September range […]

GBPAUD at Descending Trendline – Possible Trade

gbpaud hesitating at resistance 1-hour chart

The GBPAUD peaked at 2.2388 on August 24, and since then it’s been in a downtrend. The price has retraced into the vicinity of that descending trendline, providing a trading opportunity. GBPAUD Trend On the 4-hour chart the GBPAUD trend is down, meaning short trades are favored currently. We’ve had more than two months of […]

EURGBP Outlook and Trade Idea for Next Week

EURGBP 4-Hour Chart

I used to tell myself that trading expanding ranges was a bad idea. The market was trendless and whipsawing back and forth, so no good could come of trading it. In recent years my tune has changed. Once an expanding range is labeled as such, we can adjust our expectations for where our entry points […]

EURCHF Bounces Off Top of Trend Channel, Again

EURCHF 4-Hour Chart

The EURCHF had a strong rally in mid-July to mid-September, running from 1.04 to a high of 1.1050. Since the high the is price moving in a descending trend channel, which has provided multiple entry signals on the short side and will also reveal when the trend turns up again. Trendlines don’t need to connect […]

Trading EURUSD and USDCHF Following FOMC

USDCHF 4-Hour Chart ahead of FOMC

Opening a 4-hour chart and flipping through the pairs reveals a lot of ranging activity–some short-term, some long-term. The market is waiting for a catalyst, some indication of whether the US still thinks they will raise rates. I think it’s unlikely to happen soon. With the USD having just witnessed a week of strength, if the FOMC […]

EURJPY Retreats Into Support Zone – Breakout?

EURJPY Daily Chart

The EURJPY peaked at 149.78 in December and then had a big decline to 126.09 in April. That reversed the prior uptrend, and means the trend is down on the daily chart.  After the low the price rallied, and has been confined to a descending triangle since June. The low of the triangle is 132.22, […]

EURUSD Bouncing But Short-Term Trend Remains Down

EURUSD daily chart uptrend

The EURUSD is bouncing off the 1.0996 low from October 23, but the trend on the 4-hour and hourly charts remain down. The EURUSD punched through support, which was the target from last weeks’ outlook: The price has broken below the channel bottom, so the next likely target is the purple support zone–it extends from […]

Patterns to Watch in USD Pairs

USDMXN 4-Hour Chart

The US dollar (USD) has been on a tear the last 24 hours against most currencies. Fueled by uncertainty about the future of European interest rates and Quantitative Easing measures, the sell off in the EUR and rally in the USD against it has spread to other pairs. The GBP, CHF, CAD, NZD and AUD are […]

GBPCAD: Back to the Well

GBPCAD 1 Hour Chart Trend

Mario Draghi delivered some welcome news to global equity markets today as he cooed like a dove at the European Central Bank’s monetary policy decision this morning.  The Dow was up over 300 points, the FTSE closed up over 2%, and the NIKKEI is enjoying a strong rally as well.  The ECB President’s demeanor suggested […]