Our Short EUR/USD call last week was on the money. We pointed out that there was a triple top forming and our preferred strategy was to short the EUR/USD (at the time, it was trading at 1.4815), lock in profits on half of the position at 1.4685 (target it). Our second target was 1.4425 and the EUR/USD low last week was only 12 pips above that at 1.4437.
For those who are short, you should remain short with 1.4625 as your stop.
[B]Currency [/B] [B]Candlestick Formation[/B] [B]Bias [/B] [B]About the Candlestick Warrior:[/B] I am a big believer of [I][B]Paralysis by Analysis[/B][/I]. I feel that most chartists use too many technical indicators or always try to find the perfect combination of indicators that validates their trade idea. That’s why I like to keep things simple, basing my trading decisions almost exclusively on Japanese candlestick formations. Here’s where I think currencies are headed this week. Let me know what you think my analysis on the [Candlestick forum](http://www.learncurrencytrading.com/fxforum/showthread.php?t=13956) EUR/USD Triple Top, Three Outside Down Bearish GBP/USD Double Bottom vs Identical Three Neutral USD/JPY Tight Range Neutral AUD/USD Dark Cloud Cover Fading Strength NZD/USD Dark Cloud Cover Fading Strength USD/CAD Three Outside Down Bearish
[B]EUR/USD[/B]
[B]Our Short EUR/USD call last week was on the money. [/B]We pointed out that there was a triple top forming and our preferred strategy was to short the EUR/USD (at the time, it was trading at 1.4815), lock in profits on half of the position at 1.4685 (target it). Our second target was 1.4425 and the EUR/USD low last week was only 12 pips above that at 1.4437.
[B][/B]
[B]
[/B]
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2. Spinning Top
3. Price Below Shoulder Line of former Inverse Head and Shoulders
4. Triple Top on Daily Charts
5. Price Below 100-day SMA
6. Price Below First Standard Deviation Bollinger Band on Daily Charts
[B]GBP/USD[/B]
[B]Our Short GBP/USD short call last week was on the money. [/B]We pointed out that a shooting star on the weekly chart indicated that further losses were likely. Therefore our preferred strategy was to stay short the GBP/USD (at the time, it was trading at 1.9760) and lock in profits on half of the position at 1.9615 (target hit). Our second target was 1.9350 and the GBP/USD low last week was only 40 pips above that at 1.9389.
For those who are short, you should remain short, but tighten yours stop to 1.9550 to lock in more profits.
[B]GBP/USD Trading Strategy[/B]
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2. Buy after a daily close above 1.9550 with a stop below 1.9460 stop. Lock in profits on half of the position at 1.9640, move stop on rest to breakeven, targeting 1.9820.
[B]Arguments for Continued Weakness[/B]
[B]
2. Dark Cloud Cover on Weekly Chart
[B]Arguments for a Rebound[/B]
1. Double Bottom?
2. Spinning Top on Daily Chart?
3. Price Holding the 100-Week SMA
[B]USD/JPY[/B]
[B]USD/JPY traded within a tight range throughout the past week, which means that our long and short USD/JPY strategies would have worked. [/B]However the moves on both sides stopped a few pips short of our targets. Range trading continues to be the predominant theme in the currency pair.
[B][/B]
[B]USD/JPY Trading Strategy[/B]
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Triangle Formation on Weekly Chart -
Three Inside Up Formation on Daily Chart
[B][/B]
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2. Three Inside Down on Daily Charts
[B]AUD/USD[/B]
[B]Last week, our long AUD/USD Trading Strategy was stopped out for -48 pips. However, those flipping short on the close below 0.9040 would have hit the first target of 0.8992 AND the second target of 0.8890. [/B]
[B][/B]
[B]
[/B]
[B]
2. Moving Average Support on Daily Charts
3. Price above First Standard Deviation Bollinger Band on Daily Charts
[/B]
2. Dark Cloud Cover on Weekly Chart
[B]NZD/USD [/B]
[B]NZD/USD Trading Strategy[/B]
[B]
[/B]
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2. Consolidation, 3 Consecutive Dojis
[B]USD/CAD[/B]
[B]USD/CAD Trading Strategy[/B]
[B]
[/B]
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Trendline Break on Weekly Chart
[B][/B]
[B][/B] 1. Triple Bottom on Daily Charts, Matching Lows
