Friday, 3 June 2011

EUR/USD hourly chart trending up

This chart shows the EUR/USD for the past month. Note that the market is currently testing the 50% retracement of the implusive part of the decline from early May. I consider everything following May 14 to be a correction of the preceding decline. If the trend on the hourly chart turns down from nearby current levels, it would add weight to the possibility of a turn down of larger degree that I raised earlier. Before we can seriously entertain that possibility, we'd need to see a break of the up trend line, and for added confidence, a bearish cross of the 18 and 40 hour moving average. Let's wait and see. For now, the trend at this time frame is still up. Any move above the 1.46 level would discredit my "larger degree turn is possible"observation, and I'd head off in search of another trading edge... there's always plenty around.

EUR/USD bounces down from trend line

This chart shows the past two years of action on the EUR/USD. The three trend lines are parallel, and while it is quite a speculative view to take at this point, the market seems to have bounced down from the rightmost line. It is common for trend line angles to recur days, weeks, years, and even decades apart, depending on the time frame you are  studying.

Silver and Gold - off we go?

Silver has broken through the bottom of the corrective trend channel which followed its decline from early May.

Gold has broken the trend line formed from the mid-May lows, and following a re-test, looks to have turned lower again.

ASX 200 tests the trend line again

Weekly chart for the period since late 2008. The trend line is being tested again. Last week's low was broken in overnight trading (Oz Time). 

Gold and Silver turn lower

Silver. A break of the lower corrective channel line would likely see the down trend accelerate.

Gold is still in the early stages of its turn. Needs to go below the recent low to confirm the down trend.