Peter Bain Forex Trading Commentary for Friday May 26, 2006

Forexmentor.com Forex Trading Price Action

Regarding the euro, we definitely have a topping-out process going on the daily chart, what with MACD flagging bearishness, and a possible 1-2-3 pattern in the works. We also have a support trendline on the daily that has been broken, and is now providing resistance. Coming into today's session, we had positive divergence on MACD, and a double bottom - at M2 on an M2/M4 day. Price then sought out M4 - the expectedhigh for the day (M2 being the expected low). That was followed by MACD negative divergence.

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Peter Bain Forex Trading Commentary for Thursday May 25, 2006

Forexmentor.com Forex Trading Price Action

As I write this, the 15 minute chart for the euro is displaying all the characteristics of a downtrend continuation pattern, supported by MACD neutralization. Price has been repelled by the prevailing trendline on the daily, and MACD is below the waterline on the hourly. I see nowhere for price to go but down from here. Leg 2 should come in at the same distance as leg 1. For more on price patterns, we at Forexmentor.com have a module in the members' library on this topic developed by one of our members. Please check it out at your leisure.

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Peter Bain Forex Trading Commentary for Wednesday May 24, 2006

Forexmentor.com Forex Trading Price Action

When you are wondering where price is going, after a swoon in price on the 15 minute chart, take a look at the daily chart for the nearest trendline break - especially in a topping-out process.

For example, price put in a downtrend reversal pattern on the euro, as it reversed to test the trendline that was broken on the daily chart recently. Not only that, but we had positive divergence on MACD going into the London open, combined with a multi-bottom on price. Leg two up came in pretty much the same distance as leg one down.

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Peter Bain Forex Trading Commentary for Tuesday May 23, 2006

Forexmentor.com Forex Trading Price Action

The euro, while exhibiting signs of stalling out on the higher level charts, still has legs, given the fact that we do not have any convincing trendline breaks at those levels - albeit weak ones at that.

As at mid-morning, what with the hourly displaying weakness (read, MACD having punched down through its trigger line), and with a symmetrical triangle in a downtrend on the 15 minute, I see further price vulnerability ahead - at least in the short-term.

I doubt that the signs of MACD neutralization will come to fruition.

Price has retested the lower trendline of the triangle, and then headed south again.

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