Majority of the short trades did not achieve their downside targets and instead we have initial signs that suggest we may need to change to the bullish camp.
Two "risk on" currencies, AUD and CAD have broken their trendlines while GBP opened just above its downtrendline on 4h chart. The EURO is lagging ( no surprise there!) but appears poised to test the downtrendline as well. Strong wave lifts even the creaky boats. If currencies are indeed mirroring the bullish (short term?) outlook, then obvious initial targets are CAD-1.0261; AUD-1.0075; GBP-1.5610 & 1.5715; and EUR-1.3435 which is the bottom of the descending triangle where it is more likely to be rejected at least temporarily.
While we had huge runs in major equity indices yesterday, so far only DAX30 is looking comparatively bullish. It is back inside the pennant and the last place bears can make a stand is at the downtrendline currently at 5,822. It is also testing daily 50MA (blue line). S&P500 is testing its 50MA and Fib resitance while FTSE100 is about to. Nasdaq100 is still below 50MA.
Of all the charts, the most important to me would be AUD, CAD (risk and growth sentiment) and DAX30 (risk sentiment). The first two have already given long signals while DAX30 is about to confirm the long side as well.
Tradingwise, conservative players should wait for currencies to come back to test their trendline while adventurous traders must already be long AUD and GBP on the breakout and short CAD.
P.S. By the time i posted this entry EUR,GBP and AUD reached the targets i described. That was REAL fast! Already time to lighten up a bit.
P.S.2 My guess equities are doing their typical month end rally and this time on low volumes. So, with regards to the suggested trades, lighten up when initial targets are met and trail your stops. Currently it is a day trader or short term trader's market. Trade with that in mind!
Two "risk on" currencies, AUD and CAD have broken their trendlines while GBP opened just above its downtrendline on 4h chart. The EURO is lagging ( no surprise there!) but appears poised to test the downtrendline as well. Strong wave lifts even the creaky boats. If currencies are indeed mirroring the bullish (short term?) outlook, then obvious initial targets are CAD-1.0261; AUD-1.0075; GBP-1.5610 & 1.5715; and EUR-1.3435 which is the bottom of the descending triangle where it is more likely to be rejected at least temporarily.
While we had huge runs in major equity indices yesterday, so far only DAX30 is looking comparatively bullish. It is back inside the pennant and the last place bears can make a stand is at the downtrendline currently at 5,822. It is also testing daily 50MA (blue line). S&P500 is testing its 50MA and Fib resitance while FTSE100 is about to. Nasdaq100 is still below 50MA.
Of all the charts, the most important to me would be AUD, CAD (risk and growth sentiment) and DAX30 (risk sentiment). The first two have already given long signals while DAX30 is about to confirm the long side as well.
Tradingwise, conservative players should wait for currencies to come back to test their trendline while adventurous traders must already be long AUD and GBP on the breakout and short CAD.
P.S. By the time i posted this entry EUR,GBP and AUD reached the targets i described. That was REAL fast! Already time to lighten up a bit.
P.S.2 My guess equities are doing their typical month end rally and this time on low volumes. So, with regards to the suggested trades, lighten up when initial targets are met and trail your stops. Currently it is a day trader or short term trader's market. Trade with that in mind!
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