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Bears Attempt To Short Loonie to Yearly Low

On March 5, 2010, In Technical Studies, Trading Technique and Strategy Discussion, By David Yew

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.

About the author

David Yew

Associate Trainer

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USDCHF throwback in day chart; hourly chart expansion gains

On January 19, 2010, In Technical Studies, By Soh Tiong Hum

The Swissy did a throwback on the day chart. From the hourly chart, it is clearly expanding after base building. Are dollar gains here to stay? DX chart from Ino.com. The USDJPY is making similar move.

Throwback in Swissy after breakout from downtrend

Beautiful base building in hourly chart

Dollar gains visible in DX

Throwback move is also mirrored in USDJPY while a wedge formation reinforces the view of a possible continuation move.

Throwback and wedge reinforces USDJPY continuation

Tagged with: chart patterns • continuation • Dollar Index • DX • Swissy • Throwback • USDCHF • USDJPY • wedge

About the author

Soh Tiong Hum

Director of TerraSeeds Market Technician Pte Ltd. Forex Trading Trainer. Tiong Hum believes that looking at price action is the best way to trade. Reminder: [1] Investing and trading activities carry risk that may not be suitable for everyone. It is each individual’s responsibility to evaluate that risk before participation. If in doubt, please visit a financial advisor. While TerraSeeds Market Technician Pte Ltd conducts courses on investing and trading, we are unqualified to evaluate your risk for you. [2] Testimonials and illustrations may be shown from time to time. This testimonials and illustations may come from trainers or students. Their performance is not an indication of your performance. [3] Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

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Pennant in CADJPY

On January 19, 2010, In Technical Studies, By Soh Tiong Hum

The CADJPY displays a formation that looks remarkably like a pennant. This is because of the ‘flagpole’ which tells us the strong upward momentum in its previous rally. This flagpole and subsequent side-way movements suggests a continuation action after profit-takers have been cleared and strong bulls take command.

Possible pennant in CADJPY

On the other hand, price remains resisted by an August 2009 level so upside is restricted until this level is breached successful.

Equidistant channel in 4 hour chart of CADJPY

In the 4-hour chart, an equidistant channel can be seen. The resistance of this channel is the resistance of this possible pennant formation.

Tagged with: CADJPY • continuation • equidistant channel • pennant • resistance

About the author

Soh Tiong Hum

Director of TerraSeeds Market Technician Pte Ltd. Forex Trading Trainer. Tiong Hum believes that looking at price action is the best way to trade. Reminder: [1] Investing and trading activities carry risk that may not be suitable for everyone. It is each individual’s responsibility to evaluate that risk before participation. If in doubt, please visit a financial advisor. While TerraSeeds Market Technician Pte Ltd conducts courses on investing and trading, we are unqualified to evaluate your risk for you. [2] Testimonials and illustrations may be shown from time to time. This testimonials and illustations may come from trainers or students. Their performance is not an indication of your performance. [3] Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

Visit Authors Website

Where is the Euro going?

On January 13, 2010, In Technical Studies, By Soh Tiong Hum

It is difficult to figure where the Euro is going. An inspection of the daily and 4-hour charts reveal 2 possible scenarios.

Bearish flag

The daily charts suggest that the Euro may continue its downward move because of this continuation pattern. The flag is characterized by the flagpole and which suggests a lot of momentum. A body of the flag completes the pattern. This body is usually perpendicular to pole. A body that converges into a triangle is called the pennant.

For the flag to be valid, price remains within the resistance and support of the flag. It is ultimately confirmed when it moves downward and breaks the support level (see dotted line motion).

Daily charts print a possible bearish flag

Reversal

The 4-hour charts paint a slightly different picture that can be visualized as a bullish reversal. The Euro was range bound the past 2 weeks (last week of 2009 and first week of 2010). This week price made an upside movethat was higher that last weeks high. Action till now seems to suggest that a support has been formed. If the bullish picture is true, price will find a base and penetrate Monday’s high level. Otherwise, the downside move below support will support the bearish flag scenario.

Weekly high

Tagged with: chart patterns • continuation • EURUSD • flag • reversal

About the author

Soh Tiong Hum

Director of TerraSeeds Market Technician Pte Ltd. Forex Trading Trainer. Tiong Hum believes that looking at price action is the best way to trade. Reminder: [1] Investing and trading activities carry risk that may not be suitable for everyone. It is each individual’s responsibility to evaluate that risk before participation. If in doubt, please visit a financial advisor. While TerraSeeds Market Technician Pte Ltd conducts courses on investing and trading, we are unqualified to evaluate your risk for you. [2] Testimonials and illustrations may be shown from time to time. This testimonials and illustations may come from trainers or students. Their performance is not an indication of your performance. [3] Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

Visit Authors Website

Bears Attempt To Short Loonie to Yearly Low

David Yew

USDCHF throwback in day chart; hourly chart expansion gains

Soh Tiong Hum

Pennant in CADJPY

Soh Tiong Hum

Where is the Euro going?

Soh Tiong Hum

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