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.

Eur/Jpy

Eur/Jpy is actually very bullish after a lackluster performance during the European session earlier in the day.We had spotted a reversal potential pin bar yesterday as per the last post which has given us so far some good pips after it reversed all the way to the 109.00 level.Chances are that it might get to the top of the range formed between the 111.30 area and the 108.60's area.I closed out the position since we do not know what next week will bring.

Yen Pair

There is potential reversal signals on the yen pairs.Looking at the Eur/Jpy and the Cad/Jpy forming potential pin bars right at support of on the 4hr chart.I will be watching this for entry long on the short term.

Commodities

As we had predicted earlier,most commodities went much lower on yesterdays trading as well as today as the US dollar continued to gather momentum.This was possible due to Bernanke remarks earlier in the week that suggested some possibility of QE3 according to some analysts. However Gold went as was expected and is now held by the 50% fib level from the beginning of the year to the highs in end February.

Silver also followed suit being closely co related to gold.It is also being held at the 50% fib level as you can see in the chart below. A break below this line will first see support at 31.50 before further collapse should the US dollar continue to strengthen

I will constantly continue to look for this moves and update them on the blog.I had a good opportunity entering the Gbp/Jpy on the 4hr chart earlier on Tuesday at around 8pm and made some pips.I came out too early though as you can check it is still plummeting.
Good luck trading out there.

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GbpUsd

Been holding this position from yesterday.The pair has formed a bearish candle which in my opinion indicates the strength of the resistance at around 5970 area.I am still short this pair to around 5900 and later to 5800 or so.

Commodities are also in my opinion heading lower after hitting resistance levels last night.I am in short for the short term.