Forex Investment and Currency Trading

EUR/USD – The EUR appears to be pushing the envelop, with spot pressuring the upper boundary of the 4 month bull channel; previous tests of the primary channel ceiling have been followed by a period of weaker, corrective price action. While Friday’s price action is ending the week on a rather indecisive (“doji” session) note, some do not think the EUR is facing a significant correction from the mid/upper 1.50 zone. Rather, the main risk is for price to respect the steeper, shorter term bull channel and for the current EUR rally to accelerate. Structurally, the EUR bull trend is much [...]

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EURUSD has met the short term target at 1.4968 which has provided resistance. While the overall trend may be up the pair is consolidating for now. A break of 1.4968 would be a bullish development that would then suggest a test of 1.5285.
We have seen a significant break on Crude which should at least test $85 in the short term. In other markets relative GBP strength in the short term looks likely.
Fixed Income, Commodities and Foreign Exchange – EURUSD short term target met. The pair is consolidating for now within the wider uptrend. A major bullish break has taken place [...]

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History of Candle Charts

Technique originally devised by 18th Century Japanese Rice Traders
Underlying theory based upon market positioning/psychology
Commonly used since late 19th Century in the Far East
Only recently adopted in Western countries, since early 1990s
Since then the interest in and use of this method of analyzing financial and commodity markets has increased dramatically

A Candlestick
Can be used to display market movement for any period providing the open, close, high and low prices of the period are available.

Market “UP’ Day
Market closes higher than it opens

Market “DOWN” Day
Market closes lower than it opens

Market “NO-CHANGE” Day
Market closes where it opens

The Pattern

Pattern Definition
Market opens and closes [...]

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EURUSD: EURUSD clearly breached the trend across the Oct-Nov lows that provided support until today. The next support levels are at 1.2549, 1.2484 - 1.2423 area (from 2006 lows), 1.2388 and 1.2329 (Oct low).
It is still unclear whether all these levels will be tested. The trend across the lows in Jan and Feb comes in at 1.26 and it is worth watching the momentum indicator as it appears to be developing positive momentum divergence, which has NOT been confirmed yet. (If the divergence pattern does form, it will reflect weakness in the trend down). A breach of 1.2549 would likely [...]

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