EURO USD HUNDREDS OF PIPS BEARISH - forex automated trading system software

EURO USD HUNDREDS OF PIPS BEARISH ~ forex automated trading system software

The Daily Chart below shows that after breaking out of the large Pennant setup recently, the pair appears to be forming a Range just below the Support of that Pennant. 

DAILY CHART

Taking a wider view, we can see that this possible Range setup is also taking place on top of the Resistance of a much larger Pennant on the Monthly Chart.

MONTHLY CHART

This would explain the long period of indecision and volatility for this pair over the last few months. The larger the Consolidation, the larger and longer the time it can take for the pair to either breakout or return inside of the Consolidation. Given this scenario, the graph below gives us a better understanding of what is taking place on the Daily Chart which is also above a major uptrend line.


DAILY CHART

In order for us to start a downtrend to the other end of the Pennant, we will need a convincing break below this major Resistance and the Uptrend Line.

DAILY CHART

This movement in favour of the USD would be in sync with the reduction of interest rates by the European Central Bank that narrowed the Interest Rate Differential between the EURO and the USD. If this bearish breakout does not materialize, however, then the alternate scenario is that of a bullish breakout. This would mean that the Resistance boundary of the Monthly Pennant is acting as a Support, from which the currency pair will rally to resume the uptrend on the Daily Chart. It would also effectively render the current bearish breakout from the Daily Chart´s Pennant a False Breakout.

DAILY CHART

The combination of Economic data, Monetary Policy and Investor Sentiment will ultimately determine market direction. Whichever direction the currency pairs takes, it is likely to move by several hundreds of pips given the strength of the crossroads at which it is right now. To take advantage of the expected breakout, we will need to patiently wait on the right setups and signals, then confidently execute trades for strong gains.

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Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

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More info for EURO USD HUNDREDS OF PIPS BEARISH ~ forex automated trading system software:

KIWI DOLLAR TEMPTING BEARISH SIGNAL FOR HUNDREDS OF PIPS - super max forex trading system.part1.rar

KIWI DOLLAR TEMPTING BEARISH SIGNAL FOR HUNDREDS OF PIPS ~ super max forex trading system.part1.rar

This pair has been in a very large Pennant setup for the last 3 years since the end of the strong 2-Year Uptrend between 2009 and 2011. We have been hovering on top of the Resistance of this Consolidation for the last few weeks and could see the start of a new Downtrend to carry us back down to Support. A strong Bearish Candle signal has been given in this regard below the current Uptrend Line and this Resistance, but the accompanying setup for the signal is too weak to justify entry. Nevertheless, a stronger setup could materialize this month to either continue the break Bearish, or provide a platform for a strong Bullish reversal.

The strong Uptrend that came to an end represented the return of Risk-Appetite to the market following the period of Safe-Haven buying of US Dollars in 2008. This has given way to a very wide Pennant within which we have been experiencing waves of smaller Uptrends and Downtrends.

DAILY CHART

 

Closer to home, so to speak, the pair has formed a Range above the Resistance of this Pennant. It has now broken the Support of this Range as well as that Resistance boundary to possibly start a very strong Downtrend. In the process, it has also broken below an Outer Uptrend Line.

DAILY CHART

Taking a closer look, we can see the strong Bearish Candle that broke below these barriers. On the face of it, this could be a signal to start entering short to take advantage of the potential drop of just under 400 Pips.

DAILY CHART

 

However, the setup is neither a Consolidation nor a strong Counter Trend Line - setups that you would expect/require after a large 300- Pip decline. This means that until we have a clearer, stronger setup at this crossroads, the chance of a Bearish trend is now equal to that of a Bullish rally that breaks the Downtrend Line.

While the market provides us with this setup that we need before trading, it is important that we constantly review past examples of this scenario. This will allow us to confidently trade the new signal in either direction and capture hundreds of pips that are likely to be on offer for us.

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Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

More info for KIWI DOLLAR TEMPTING BEARISH SIGNAL FOR HUNDREDS OF PIPS ~ super max forex trading system.part1.rar:

NZD JPY ABC SIGNAL GIVEN BUT TO WEAK TO TRADE - the forex trading pro system course

NZD JPY ABC SIGNAL GIVEN BUT TO WEAK TO TRADE ~ the forex trading pro system course

We were a bit tempted to enter long on this pair yesterday when it gave us an ABC Bull Signal above the broken Downtrend Line. This could have been the signal needed to take us up to the Resistance of the Range being formed and capture some Pips in the process. However, like many of the signals in the Forex Market these days, this was too weak to justify taking a position. As such, we will either have to wait for a stronger Bullish signal, or look to another pair altogether.

The last few weeks have seen the pair gradually moving sideways towards the Inner Uptrend Line.

DAILY CHART

In doing so, the currency pair has moved in waves of Uptrends and Downtrends to slowly form a large Range pattern.

DAILY CANDLE 

The Resistance has already been formed with only the 2nd Support price point needed to complete the Consolidation. This was expected to be started with a Bull signal to break the Counter Trend Line (CTL), following the break of the Downtrend Line (DTL).

DAILY CANDLE

   
The Bull Candle appeared and broke the CTL setup as expected. Unfortunately, the size of the candle given was below what we are accustomed to for ABC signals and candles in general that start trends. A candle similar to that on the right would have been better and is the type that usually leads to strong breakouts, without hesitation.

DAILY CHART

ABC setups can be thought of as spring boards- the greater the force applied/the larger the candle, the greater the distance traveled.

DAILY CHART - EURO AUD

If the candle is not strong enough, the market either reverses or provides another setup and signal. In some cases, the market actually moves in response to the weaker signal, but this rarely happens. When it does, the trend tends to be volatile and take a much longer time to reach its target, with unexpected price spikes along the way. 

Nevertheless, for those who have chosen to trade this setup,  lets hope that I am wrong- for those opting not to trade, lets hope that I am right.

Happy (no) Trading.

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Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

More info for NZD JPY ABC SIGNAL GIVEN BUT TO WEAK TO TRADE ~ the forex trading pro system course: