CADJPY UPDATE!!!

This pair also did as suspected. Broke the major trend found support and retraced up only to find its way back down. How far will we go????

EURCAD

EURCAD is at major resistance. If it does not break we could see a substantial decline in the future.

CADJPY Update

Well last week we saw the break we were looking for with CADJPY. Once the break occurred, like many of the other currencies. We found a consolidation area form. I will be looking for another break below $82.00. Hopefully this week the moves are a bit more drastic and we see this pair make a run to $80.00.

EUR/NZD

If the EUR/NZD breaks the down trend lines drawn we may see a potential 400 pip run to approximately 2.2470. An additional bullish sign is the double bottom which is identified by the green horizontal line drawn.

AUD/CHF

From a technical stand point it looks like AUD is running out of steam. You will notice on this 8hr chart of AUDCHF, there is a classical Head and Shoulders top forming. We may see the AUDCHF decline to approximately0.8440. If the trend continues to the downside we could see the AUDCHF near 0.8000 in the next week or so.

Bearish Gartley

Many people use Bullish and Bearish Gartley Patterns. They are simple patterns for recognizing potential reversals in the markets. Here is how the pattern works; you will notice each point of the pattern is labeled with X,A,B,C and D. The movement from X to A is essentially showing the direction the chart should travel once the pattern forms point D. With this being a bearish pattern once point D is reached the chart will sell off.

The objective is to find where point D will be so you can buy or sell the currency, stock, future, etc... In order to do this you will need to do some simple math. To calculate point D for Bearish Gartley's you must take the high of B minus the low of A and then add the low of C (high B - low A + low C = D). Essentially AB=CD in price.

Also, to confirm point D is a harmonic area as well as the additional points on the chart (A,B,C), you should use the Fibonacci retracement and extension tool. Hence the ratios noted in the chart. For beginners you may want to google Fibonacci to get a bit of an education on the tool and how it is used.

CAD/JPY

CAD/JPY seems to have met reasonable resistance at 86.00. If it continues to drop and make a bearish run through 84.00 we may see a 400 point decline over the next few days, to one week. Additionally, the stochastics are starting to create a negative slope whcih is indicated by the purple line. Failure to break 84.00 with a continuation down; the pair may find suport and proceed to follow the trend to the upside with potential to break 89.00.

USDJPY

The Dollar/Yen 's trend is obviously down, however it managed to break an intermediate down trend and failed to break at the longer term down trend. It is now found testing the prior resistance of the intermediate down which may now act as support. A reversal from this point will signal a bullish move back towards the $93.00 levels. A break above $95.00 would suffice a larger bullish move for the pair.

EURUSD

EURUSD could be looking to form a low come the $1.3030 area. We seem to have found a potential "Three Drives to a Low" pattern. We will watch to see if the EUR starts to bottom out at these levels. Also 1.3030 is roughly a 1.618 extension. I did not draw the ratios on this chart, but an educated technician will know where to use the fib tool to check for this extension.

EURJPY

EURJPY was in a reasonably sized triangle for quite some time (noted by the green arrow) only to find a break to the downside. It was obvious to short the pair on its break. The break to the down side opened new possibilities for the charts direction. That being said we may have found a potential Head and Shoulders pattern (labeled by SHS on the chart) starting to form. If the reversal occurs we may see this pair soar above the $131.00 price zone which will also indicate a strong break above the larger down trend(noted by the red arrow). Bias wil change if the price falls below $116.00.

EURGBP

EUR/GBP has made a great run to the bullish side over the last few weeks. However, we recently experienced a drastic pull back. Taking a close look at the pairs mid term support level we see a Doji formed at the level of support on the 8hr chart, which is a sign that a potential reversal will occur next week. In addition the chart seemed to find itself forming a the Doji on support and a 61.8% retracement, which is another great sign of a potential reversal next week.