Euro waves

At 1.30pm London time today, the Euro exploded upside on the US employment numbers were worse than expected. The chart shows the lastest candle correcting back strongly so what happens next?

Elliott Wave watchers will spot the blue lines showing a clear five decline that came to rest at a support area. After a five wave move comes an a-b-c correction, so which wave do you believe is shown as the last candle?.

Cable today

Cable has few friends and the worst retail sales numbers announced at 11.00 am collapsed cable in short order. However, the pattern now setting up as seen on this 30 min chart suggests support could come in at the lows near the blue line.

For more info on this pattern and how to trade it, contact me george@clickevents.co.uk

Today it's the Euro

The Yen trade performed nicely overnight on Thursday ending in a double hammer as it's Gartly pattern completed at breakfast time on Friday.

Today, the Euro got moving from below 1.5710 at 9.00am and is now hesitating at the previous highs of 1.5750. The overall pattern is strong and it could go much further as the US$ weakens. In case it corrects back, this would be a good place to take partial profits.

Potential reversal

The Jappy, USDJPY pair is showing signs of a potential reversal this morning. The eight hour chart shows price now at two Fib resistance zones and if price is no higher at 2.00pm today, the current candle will be a bearish engulfing.

The opposite could happen of course, if price moves higher then it would become a bullish continuation candle.

Traders are often faced with conflicting information and the analysis process can lead to confusion. Analysis does mean price will move in any particular direction, it only serves to suggest possible senarios. Actual price action is the final arbiter of course.

Back from Europe

My previous trip to France was last October and last week, whilst travelling between Barcelona, Andorra and Perpignan in France, the strength of the Euro was painful on the pocket!

At long last today, the Euro and British Pound decoupled following the MPC story earlier today. The chart shows how the EURGBP pair has moved sharly lower and that should please the Spanish, Greeks and Italians who have been struggling with economies further weakened by the the ever strengthening Euro.

The chart show how the rising trend line broke and the next hurdle to lower prices still, is the horizontal blue line. This is the area from which the pair has rallied strongly in the past so, at the very least, some consolidation should be expected that could develop into a strong rally unless the lows can be taken out.

All the way down and back up again

The EURJPY pair moves well over 100 pips during a typical trading day and today was no exception. The decline started overnight and breakfast traders sold just after 6am as the Colour Charts turned red and bought back for 70 pips or so profit by 10.45am.

The next signal came at midday to buy for the bounce and the sell signal came at 4pm for another 50 pips or so. Entries and exits were clearly shown and I have added in the MFI that can give the trader added confirmation. The chart also shows a Bat pattern that increased the probability of a successful afternoon run.

Downers and Uppers

The Yen trade worked well running up through 200+ pips, this afternoon it is flagging with a very bearish engulfing pattern that has developed. However, Cable has been an excellent performer today with some very low risk trade entries highlighted.


The chart show how the breakfast trade worked out with three major sell signals, my shorts were covered early at just before 10.30am and then the reversal was indicated, in part, by the divergence set up with lower price and a rising Money Flow Index.



Cable behaved very cleanly giving several long entries and, as I write, price has bounced up to almost $1.98, a good place to take profits.

Support at 105

The USDJPY pair is at anotjher crossroads and support exists at the 105 level from Fib retracements, extensions, previous price action and the Candle hammer.

The bounce that took place yesterday leaving a daily hammer (one of the most powerful candle formations) just might hold at these levels.