Hey Valutraders! We might be at parity on EURUSD today!
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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at AUDJPY, the Australia 200 Index (AUS200), the Nikkei (JP225), and EURUSD.
The talk of the markets is the possibility of EURUSD at $1.00 which we haven’t seen for almost 20 years.
The strong USD and fears of Euro recession are driving this.
We see that price action should intersect this lower trend line at about $0.98.
If you like chart patterns as much as I do, you will see this Falling Wedge, on the monthly chart, which is a bullish pattern but this could take months to reverse.
Yesterday we promised to look at the falling stock indices from a technical standpoint and we see a Symmetrical Pennant on the Australia 200 with price action falling to the lower trend line.
We hope you spotted this Head and Shoulders pattern from last month before the drop.
Early this morning the Nikkei fell, as well, and price action is also forming a Symmetrical Pennant with the Stochastic Oscillator showing very oversold.
Last week we looked at the weakness of AUD and, as you know, we have been waiting for a reversal of JPY.
Here we see a Symmetrical Pennant on AUDJPY with price action touching the lower trend line and the Stochastic Oscillator showing oversold.
My strategy would be to wait for a bounce off the upper trend line with confirmation from your favourite technical indicators.
Meanwhile, we will watch all AUD pairs along with all JPY pairs on our MT4 profiles and I’ll show you what that means in next week’s webinar on Analysing FX Pairs.
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