Tuesday, 3 May 2011

AUD/USD, GBP/USD, EUR/USD all show signs of USD strength

AUD/USD is showing signs of weakness on the hourly chart following the test of the monthly chart trend line and the test of the 0.618 fibonacci retracement on the 40 year chart. The daily chart trend (not shown) is still up but this would be threatened by a move below the lower trend line on the hourly chart.

The EUR/USD is also showing signs of weakness on the hourly chart, with another trend line break in recent hours. The larger degree daily and weekly trends of course remain up.

The weekly chart of the GBP/USD offers a hint that the larger degree trend is possibly changing, with a throwover of the trend channel line yesterday, followed by a push back below that line today.

S&P 500 hourly

Bearing in mind that the daily chart trend is strongly up, the hourly chart is showing possible (possible not probable) signs of weakness ahead, with a push below the trend line formed from mid April low, and also a move down from near the top trend line of the trend channel formed from the mid March low.