INDICATOR OF THE DAY" - AUD/JPY 2009 HIGH
More often than not, simply using a daily high or low as an indicator can be the most effective form of technical analysis. Even non-technicians are well aware of this simplest form of technical analysis and use these levels in their day to day trading. One of the key levels to watch over the coming session in the FX market is undoubtedly the 73.50 high set back on April 14 in Aud/Jpy. The level represents a recent trend high, the high for 2009, and the highest point since October 14, 2008. As such, we would expect to see some major stops built up above this level, with a break and close above to likely expose a direct retest of 74.55 over the coming days. Inability to hold above 73.50 however, will suggest market exhaustion and open the door for a material pullback after stops have been taken out. Given the recent moves, we suspect that a break above 73.50 could prove to be a false one and would recommend that trader’s look to sell the cross after it takes out the 2009 highs.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel’s reports in a more timely fashion, e-mail [email protected] and you will be added to the “distribution” list.
Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)
“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Cross Country” – A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates.
Monday-Friday (between 10:30am-11:30am EST)
“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)