Tuesday, 26 March 2013

USD/JPY breaks one major daily chart trend line support, only to rally from another #jpy

Daily chart illustrates the USD/JPY breaking the up trend line drawn from the November low, only to rally from a major internal trend line drawn from multiple peaks and troughs from the past six months. Will last night's low hold and the market rally going forwards?

Zooming in to the hourly chart suggests that corrective action within a trend channel is complete or nearly so.

Gold breaks lower from both hourly chart trend channels, so time to zoom out #gold

The hourly chart shows that Gold has now broken lower from both those trend channels illustrated in the previous post.

Time then to zoom out, first to the daily chart, which shows the recent turn lower coincided with the mid channel line of the channel drawn from the October high. The chart begs the question, is Gold headed for a new trend lower, or a choppy period similar to that frm May through August last year? A break above 1620 is required to indicate more immediately bullish prospects.

Zooming out further to the weekly chart shows Gold range bound. Is it headed for a test of the 2012 and late 2011 lows?

Gold's hourly chart tells a tale of two trend channels #gold

Gold's hourly chart is showing two slightly different trend channels, each telling a different tale.

I've posted the first channel several times recently, showing a bearish break lower, followed by a retest, and a subsequent turn lower.

The second channel presents a potentially bullish alternate, with the bearish break looking to be false, at this time. Though below 1600 in either case and the outlook would be near term bearish.