Pattern Radar

EUR/USD Fibo Projected High

Radar — Tue, 02 Feb 2010 06:45:13 +0000

EUR/USD Fibonacci Support

by Autochartist

With the short term intraday charts showing some upside potential as the equities market recovered some of its prior week losses, the EUR/USD has found support near 1.3886. As this support holds the projected upside target for this ABCD Fibonacci pattern on the 60 minute chart could offer insight into where the rally will exhaust. This bearish pattern is most often used to trigger either an exit from a previous long position or a short at the projected D level. If/when D is completed, the market is expected to head lower to the Fibonacci support levels waiting below. The 38.2% at 1.3939 would be the first potential support if prices head lower. This pattern has potential excellent balance between the move from A to B and the expected move from C to D. The D point is only confirmed once prices reach the projected resistance level (pink) on the chart.

EUR/JPY Trend Slows

Radar — Tue, 02 Feb 2010 00:55:26 +0000

The 60 minute EUR/JPY has been slowly transitioning from the downtrend market cycle as prices are showing that the 125.00 level is near term support. The 124.39 low was short lived as prices rallied quickly
higher ultimately rallying through and staying above the 125.00 psychological level. With this rally the Initial Trend reading is confirming the sideways market cycle will a reading of just two bars. The Continuation Falling Wedge pattern therefore is a less a downtrending pattern alert and more valuable now for the downtrend line resistance that prices are currently testing. Still even with the sideways market, prices must break higher through the 125.70 level to confirm any continued upside. The 125.50 level will be considerable resistance as the 240 minute and daily charts are still in a strong mark down cycle.

More EUR/USD Downside

Radar — Tue, 02 Feb 2010 00:53:01 +0000

The downtrend on the daily EUR/USD has been steady since January 15th with very little upside correction. The last bounce on this time frame occurred between January 21st to January 26th. After topping out at 1.4194, the sellers showed their determination to continue selling just in front of the 1.4200 major psychological level. So the formation of a Continuation Falling Wedge Complete Pattern is simply
another sigh of more downside to come. The Forecast area is currently plotting between the 1.3690 to 1.3440 on the daily time frame. The pattern is triggering another short sell as prices break the support
(blue) of the pattern.

Dow Jones Losing Momentum

Radar — Wed, 13 Jan 2010 18:46:21 +0000

The DJI (Dow Jones Industrial Average) has been trending higher intraday as prices are finding support above the 10,600 psychological level. With a weak Initial Trend reading the upward strength of the 30 minute chart’s Continuation Rising Wedge could be suspect. There is a better chance that the 10,640 area will continue to be near term resistance and the short term intraday market cycle could transition to a sideways market on a week with little economic data. Look for traders to fade the pattern resistance near 10,700 if the Initial Trend stays low. The breakdown/support level to watch is 10.580.

AUD/USD Trend-Follow Play

Radar — Wed, 13 Jan 2010 13:28:30 +0000

The Initial Trend’s medium to high reading indicates that the downtrend is intact on the 30 minute chart of the AUD/USD. The Continuation Channel Down is setting up a correction entry in what would be a trend-follow or “swing” play. The downtrend line resistance (green) is the short entry trigger for the bounce within
the the downtrend. Currently that level is at the 0.9226 level. Keep in mind that the Initial Trend reading could also point to distribution and therefore exhaustion near the downtrend line would be expected.

EUR/USD Wedge Support

Radar — Wed, 13 Jan 2010 13:26:48 +0000

The uptrend on the 240 minute EUR/USD has been rejected at the 200sma that has come down as a dynamic resistance level. The selling pressure at the 200sma and the support of the wedge uptrend line has
brought this pair to a major decision level. The Initial Trend is low and indicates that the uptrend is stalling and becoming range-bound. If the uptrend line breaks and prices can head lower through 1.4465 keep an eye out for 1.4450 support and remember that the Initial Trend is pointing to sideways movement from here.

Next Leg for USD/CHF

Radar — Tue, 12 Jan 2010 19:17:19 +0000

The intraday downtrend across the 30 and 60 minute charts has been slowing as Asia approaches. The Monday session for the USD/CHF showed the franc gaining on the dollar throughout the session due in no small part to an inactive Swiss National Bank. The pause now offers a chance to consider what the next move for the pair will be. The transition will likely set up triangles or rectangles on the 15 minute time frame as it moves sideways. The 30 minute chart is still in a mark down cycle but the sideways movement is weakening the Initial Trend pointing to a transition. Ideally shorting in the direction of the trend would be the set up if more downside is to be seen and if prices stay below the 1.0200 psychological level.

Initial Trend Readings

Radar — Tue, 12 Jan 2010 19:15:37 +0000

One of the most powerful Quality Indicators associated with every Autochartist update is the Initial Trend reading. It is one of the most distinguishing facets of Autochartist. The Initial Trend reading allows each chart pattern to be analyzed within the context of the underlying market cycle. The 30 minute Reversal Channel Up pattern on the EUR/USD has a broken the support line (blue) of the pattern. This break signals the “Reversal” of the uptrend on this time frame. The Initial Trend reading is indicating that there is still some strength in the uptrend and that prices are likely transitioning into what could become distribution. Fewer Initial Trend bars would indicate accumulation - a narrow sideways cycle - while more bars would point to an trend strength.

EUR/USD Range Defined

Radar — Wed, 06 Jan 2010 20:49:20 +0000

The 240 minute EUR/USD has been trading within a wide range as prices are bouncing off the 1.4280 area and hitting a ceiling between 1.4480 and 1.4500. The range, coupled with the lack of trend (T), has formed a Continuation Channel Up pattern. It’s a shallow channel, certainly not a sharp uptrend. In fact, some traders would consider this pattern to be a bear flag since the angle of the pattern is shallow and the pattern itself is short at just 20 candles in Length. If the intrday resistance that has been established is able to hold, the pattern could break lower through the uptrend line support if the U.S. Dollar has another push higher.

EUR/USD Reaches Intraday Forecast

Radar — Wed, 06 Jan 2010 20:34:15 +0000

The breakout of the Continuation Rising Wedge on the 30 minute chart has followed through to the Forecast resistance. The lower level of the resistance area has been hit at 1.4440 but the area extends up to the 1.4470 level. The January 5th high is 1.4484. The key here is to watch whether prices are still finding buying support at the uptrend line support of the wedge. The Initial Trend (T) is very low and this indicates that from here the EUR/USD could find an intraday range and transition into a sideways market after the rally that started at 1.4254.