This weeks 23rd April 2012

Pound has reached a major resistance line at 1.6127 on Fridays closing and may be headed lower this coming week.There is some bearish divergence on the daily charts with the MACD which in my opinion suggests some bearish  move to the 6000 levels.

Daily chart with bearish divergence.Keep an eye on this pair this coming week depending on how it will open come Monday morning.There is some news coming this week on the 1st quarter GDP reading s that may be a game change with higher expectations.

There is some bullish divergence on the Aud/Usd pair on the weekly chart which may signal some bullish action this coming week.However,most readings from Australia have not been as encouraging and may be slow to develop.Weeklies are however long term and any news from the FOMC this week may be a game changer.Take note and act accordingly.

 I am also looking at the Yen pairs this week which have been bullish across the board for most of last week.Still bullish for this pair though especially with the Eur/Jpy that has a big bullish bar on the weekly chart that only suggests further bullish action on an upward trend since mid January this year.A move higher could lead to the double top formed at around the 112 area earlier this year.

However,Gbp/Jpy has formed a harmonic pattern that may suggest some bearish price action on the daily chart for the coming week.The pair is almost at overbought on the daily chart.I will be watching for price action for this pair to take advantage should the Yen strengthen.

This are the trade set up I will be watching closely for this coming week.Kindly do your own analysis and feel free to add your thoughts to what I have posted.Have a great week people.

possible trades

On a technical basis, i have Chf/Jpy that has formed a pin bar on a major support at  around 87.75.I will be watching to see if it actually holds on as major support.The pair is also at oversold.Most yen pairs move together and will also have an eye out for the others.

Eur/Aud has also formed a bullish candle just like the Eur/usd and the Gbp/Usd.We will be watching this pair if they will continue with the move upwards after a yesterdays dramatic comeback during the US session.

Good luck trading.

Possible patterns

Silver has formed what could be possibly a H&S pattern depending on how you want to see it.Will be looking for a break below the shoulder line for an entry short.The pair which has been closely correlated to gold for a while now will definitely be affected with news from the US dollar with all the QE3 speculations and may be good to watch for opportunities.

 Gbp/Jpy is in my opinion forming a Gartley pattern on the weekly time frame.This could be a good indicator on the direction of the trend should it play out as expected.Repatriation of funds by corporations back into Japan has caused a lot of volatility for the Yen pairs over the last few days of trading and a slow down may cause the currency to once again strengthen to its previous position. Our earlier positions on this pair could have given us plenty more pips had we held for the longer term.

Good luck trading to all and happy pips.