Monday, 22 December 2014

AUD/USD testing trend line drawn from extremes in 2004, 2005 and 2010

Monthly chart first. Similar chart to last week's post, but market action since then has allowed the drawing of the trend line to be fine tuned to something better fitting. Is the action since mid 2009 a giant Head and Shoulders top? Or will the market rally meaningfully from the trend line test? Nobody knows, unless the line is broken, but I'll favour a rally.



Daily chart next. A rally through 0.82 would break the illustrated nearby down trend line.




EUR/USD testing trend line drawn from the lows of 2010 and 2012

Weekly chart shows EUR/USD is testing the trend line drawn from the lows of 2010 and 2012. RSI is showing a bullish divergence, having just crept out of the oversold zone.