Forex Investment and Currency Trading

EURUSD: The bullish key day up posted on Thursday is a strong indication that the market may stretch back to the 1.33 resistance level. Support at 1.2329 is still in place and the last time EURUSD posted a bullish reversal pattern on the daily chart, the market rallied 583 pips from the close up to 1.33. Such a move this time would take EURUSD to 1.3363.

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EURJPY: 76.4% Fibonacci against the lows and a bullish reversal pattern posted on Thursday. The market remains above there and a test of 131 followed by 139 (55 day moving average) is very possible.
NZDJPY: 76.4% Fibonacci against the lows comes in at 52.13 which has effectively been tested. A ST bounce to resistance at 60 and then 61.50 would not be surprising.

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Overall: Equity markets, some Emerging markets and G10 FX have chart setups which suggest that the next significant ST directional moves will be those consistent with a more positive environment.
Foreign Exchange: G10JPY Index: The 76.4% Fibonacci retracement against the lows suggests further JPY weakness in the ST. The same formations are in place on EURJPY and NZDJPY.
EURUSD: The bullish daily reversal on the still holds and the market could rally back to resistance levels. GBPJPY: While this is a work in progress there are early signs that we may see triple positive momentum divergence on the daily chart which would [...]

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What is Divergence?
Divergence on a chart exists when the relative trends of price and of studies are moving in different directions. For example, if the price of Gold is making higher highs (trending higher) and an oscillator study on Gold is making lower highs (trending lower), a bearish divergence exists. Divergence can be bullish or bearish, depending on the relative directions of the price and studies.
Studies, such as RSI, Stochastic and Volume, as well as overlays, such as Money Flow, Cumulative Volume and Price, can all exhibit divergences with price. Typically, divergences are resolved when the price moves in the [...]

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Doji are probably the most significant of the candlestick patterns, because their basic shape forms the basis for many other candlestick patterns. A doji occurs when the close is the same as the open, generating a candlestick with no real body – simply a vertical line with a cross on it.
On days when the close is only a few points apart from the open, generating a candle with an extremely small real body, you can take a bit of artistic license and consider it a potential doji depending on the preceding candles. If the prior days’ candles were composed of [...]

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