Friday, 20 January 2012

AUD/USD triangles at multiple time frames

The following daily candlestick chart shows that the AUD/USD has been forming a symmetrical triangle for the past 6 months. An eventual break out in the direction of the preceding trend is likely ie. upwards. This break could happen directly from current levels, or subsequent to another pull back and further consolidation.

The hourly chart of this week's action also shows a symmetrical triangle, which is also likely to break upwards... meaning an upwards break of the larger degree daily chart triangle could be very near.

NASDAQ 100 bullish upside break

Overnight the NASDAQ 100 broke out to new highs. The long term weekly candlestick chart shows it best. After consolidating through last year, the market has now beaten the 2011 high. The NASDAQ 100 is also well above the 2007 peak, a sign of relative strength compared to other US and western indices. The moving averages confirm a fledgling up trend at this time frame.

In Wednesday's post about the S&P 500, I said that "we must be getting to the last stand for the bearish case" on US stocks. Unless we see an immediate turn lower, the bulls will likely be smiling in the months ahead.