2 confluence zones stand out strongly for the AUDUSD on the 4-hour chart:
From a risk-reward proposition point of view, it might be worthwhile to fade the downward equidistant channel visible in the daily-chart.
AUDUSD in tightening wedge
AUDUSD equidistant channel in daily chart
The recent moves of EURJPY on the weekly chart shows that it is on a downtrend, creating lower highs and lower lows.
If this downtrend continues, it may find an intermediate support zone that is very near to 2009 lows.
Weekly Chart of EURJPY
Looking at near term, on a H4 chart below.
EURJPY H4
There is a high chance that there will be a lot of reaction on the critical support / resistance level as highlighted, which could result in 2 directions.
1. As a Support level for rebound, this will only confirm the market has respected this level again.
2. As a breakdown of Support, resulting in further downtrend movement, seeking for next level of support.
Last night we saw a bull trap. That’s over.
Based on the proximity of GBPUSD to the support now, it might be bulls’ turn. If so, the next zone to watch is the pullback resistance. If that breaks, this whole episode is a consolidation. If that resistance fails, we got a bearish continuation with head and shoulders.
All this happens only if bulls take over for a while.
GBPUSD bull trap sprung
2 units of Ultra-Mobile Personal Computers (UMPCs) to be won
City Index and TerraSeeds has come together now to organize
Attractive prizes are 2 units of Ultra Mobile Personal Computers* worth SGD 700/- each.
TerraSeeds students who sign up for a new City Index account with a minimum funding of USD 1000/- can take part in the competition.
The prizes go to 2 persons who achieve the highest trading volume between 15 March 2010 (0000 hrs) and 14 May 2010 (2359 hrs).
In order to participate, please contact TerraSeeds for information. Call 6492 3196.
The Sterling has made a worthy break and reversal. While momentum traders consider going long, last week’s resistance must be watch – any failure to support at this point may be considered a bull-trap for big trend bears.
4-hour trendlines for GBPUSD
The Loonie (USDCAD) is on a downtrend since 2009 and it does not seems to have any attempt to reverse this trend as of now.
Weekly Chart of USDCAD
As from the Weekly Chart above, the Loonie is making its way near to 2009 support and it is also near to multi-week support zone now. Since late Sep 2009 till now, the Loonie has been on a trading range, which could be a consolidation of the downtrend.
How to take this advantage?
4 Hourly Chart of USDCAD
On the 4 hourly chart, it seems that Loonie is forming a pennant-like chart pattern, which could hint a possible trend continuation.
This pattern will be valid as long as the top trendline of the pennant is not violated.
On the other hand, a bullish view on the Loonie could regard the pennant-like pattern to be a symmetrical triangle for a counter-trend move.
Therefore, it will be better to wait for a clear picture for Loonie to unfold before attempt for a trade.
The recent 4-hourly chart of EURUSD and USDCHF shows that both currencies are negatively correlated.
We posted yesterday on EURUSD having a possible triple bottom formation. It is observed that USDCHF made a triple top.
Thus, it is worthwhile to analyze these 2 pairs together for your trades.
EURUSD having triple bottom
USDCHF forming triple top
USDJPY, EURJPY all rivers flowing south, EURUSD in headwater. Trend lines define a potential continuation pattern although boundaries will dictate final direction.
Trendlines define boundaries
This morning on H4 chart of EURUSD, it seems like there are 3 valleys (V or U letter shaped pattern), which is the classic triple bottom chart pattern. The triple bottoms, which spans over 3 weeks, could be a hint of a Bullish Reversal move underway.
How to trade the triple bottom?
As with double bottom formation, the bullish view is only confirmed when Price Action breaks out of the neckline. The additional criteria for the validity is that Price Action should not make a new lows beyond the triple bottom.
If there is a new Low formed in the coming days, then the triple bottom is invalid. Instead, it can be a possible rectangle pattern, which is a consolidation of the Bearish Trend move.
MACD High Probability Trades 
