Posts tagged 'DMI'

GBPCAD – Bought at key average
GBPCAD – Bought at key average17th January 2018

Our medium term outlook for GBPCAD has been bullish since the middle of September when the spot and RSI both traded above their relevant Moving Averages.The resulting upside in GBPCAD of 8 big figures was capped by the top of the weekly Ichimoku Cloud pattern, where profit taking developed.  Peaking in December, the bulk of the holiday... read more

US$ Index – Temporary Rally?
US$ Index – Temporary Rally?1st November 2017

US$ INDEX, still long-term bearish, but looking to trade bounceWe have been bearish of the $Index throughout 2017 and in our last update on May 11th we emphasised this view by highlighting the inverse relationship between US interest rates and the US$ exchange rate.The sell-off has also come from close to a 62% recovery to the... read more

$ INDEX and rising US rates
$ INDEX and rising US rates12th May 2017

Historically, anticipation of rising US rates has supported the US$. However, in a classic case of rumour over fact, once those rate rises have been implemented the US$ usually reverses.This year's signals on the $Index have been bearish and are supporting this view. Sellers have returned to the 14 year highs and from close to... read more

CHFJPY – Failed Rally Confirms Negative Trend
CHFJPY – Failed Rally Confirms Negative Trend29th June 2016

.. I last wrote 3 weeks ago on the continuing downward trend in CHFJPY.  We’ve had some increased volatility since after the Brexit vote but this has only served to emphasis the underlying negative trend.Friday’s aggressive bounce took CHFJPY back to the mid-point of the negatively trending Keltner channel but, importantly, lacked the momentum to test... read more

CADJPY – Sentiment turns Negative
CADJPY – Sentiment turns Negative20th June 2016

....Last week's strong decline in CADJPY , and bearish RSI crossover, has confirmed a renewed negative tone for sentiment.The key 21 week moving average was broken on the downside in July 2015. This negative move confirmed the previous week’s ‘dead’ cross in RSI indicators. Price action has been capped by the 21 week moving average since that... read more

NZDUSD – Key Average supports further gains
NZDUSD – Key Average supports further gains8th June 2016

....I wrote back in late April how buying interest was dominating the background to NZDUSD.To be honest the market has been less than convincing since that point as consolidation has set in near a key 50% correction point to the April-September 2015 decline. But;the profit taking corrections from that point have been limited.the latest pullback has found... read more

CHFJPY – Sentiment remains negative
CHFJPY – Sentiment remains negative6th June 2016

I have written before on these pages of the negative sentiment that has dominated CHFJPY  for a year now. This trend has been highlighted by a 'hugging' of the lower band of a falling weekly Keltner channel, by the capping of rallies by the mid-point of that channel, more clearly by the 21 week moving average and... read more

DMI Difference – Useful for traders?
DMI Difference – Useful for traders?14th April 2016

I was recently questioned on a short-term chart that I drew that showed bearish triggers being given by moving average crossovers on the spot price, RSI, Momentum and DMI Diff.The client had seen and used RSI and Momentum (nearly everyone has tried those indictors at some point) but wasn't aware of the usefulness of DMI Diff... read more

EURCHF – Sentiment increasingly negative
EURCHF – Sentiment increasingly negative11th April 2016

.    EURCHF - Sentiment turning BearishFor 6 weeks EURCHF has fluctuated around the key 21 week moving average without clearly breaking to the downside, on a closing basis, or attracting any significant renewal of buying interest.But last week's decline resulted in a clear break below that point for the first time since last July. More importantly... read more

Where do BUNDS go this Quarter?
Where do BUNDS go this Quarter?1st July 2015

We look for lower levels to develop in Bunds after the Greek issue has calmed, one way or the other, with downside scope to 148.23, 145.85 or even towards 141.37. A sequence of 5 positive quarters ended over the last 3 months. Early Bunds gains proved limited and sentiment reversed sharply. The preceding quarters entire upside was... read more