Now that the markets which I track have developed strong down trends at hourly chart level, it is time to step up to daily chart level to see if down trends will develop there.
I like to trade the strongest movers, so with potential new down trends forming, I like to focus on the downside leaders. Amongst the markets I track, the weakest currency looks to be the EUR/USD, and the weakest stock index looks to be the ASX 200. Silver is weaker than Gold, but you'd need bigger gonads than I have (or larger risk tolerance) to trade Silver at this point. So I will focus on Gold, while keeping one eye on Silver. If Silver stops leading Gold to the downside, that in itself would be a warning that risk appetite is increasing, and that the infant down trends may not get out of nappies.
Thursday, 12 May 2011
The USD surged upwards overnight (Oz time) against other currencies, against Gold, against Silver, against stocks. Clear hourly chart upwards corrective patterns ended across the board and lead to thrusts lower in every market that I follow. Before I show the hourly charts, first have a look at the daily chart of the EUR/USD, to see the longer term context for the latest surge of USD strength.
Now to those hourly charts, mostly showing the action since the beginning of May, though a couple show a little more history to provide context.
|EUR/USD corrective channel break as foreshadowed last night (Oz time).|
|AUD/USD corrective wedge break.|
|GBP/USD corective channel break as foreshadowed last night (Oz time).|
|S&P 500 corrective channel break.|
|ASX 200 close to a corrective channel break.|