The AUD/USD is in the topping out process

Forexmentor.com Forex Trading Price Action

For every yin, there is a yang in trading. Translation: for every trend, there is a counter-trend. Witness yesterday – a counter- trend move down after the news hour; a reversal up at the London close, in favor of the original up-trend; a further reversal down at the London open today. Price halted in its tracks at the expected low on the day – M2 – this being an M2/M4 day. On the daily chart, it looks like the Aussie is putting in its final thrust upwards – leg three up in a last gasp to top out. MACD is trending down, and is below its trigger line – heading for the waterline. Given that the Big Dogs are extremely short the Aussie, I can see the Aussie topping out on ‘Knock Three.’ Price has already put in a double top on the daily chart. For more of this trading speak, consult the members area at www.forexmentor.com.

See latest sample AM Review at: http://www.forexmentor.com/sampler/

A good short opportunity in the works on the AUD/USD pair

Forexmentor.com Forex Trading Price Action

It appears that the Aussie (AUD/USD pair) is trying to top out on the daily chart, what with the Big Dogs extremely short vis-à-vis COT (a.k.a. Commitments of Traders) data. According to Christoph Lahrs, the telltale signs of a topping out process are three legs up, accompanied by three legs down on Stochastics. Two legs are already in place, as of today, and STO (a.k.a. Stochastics) is exhibiting negative divergence to price. A good short opportunity in the works folks. In the meantime, day traders had a field day today. The 50 and 100 EMAs performed a ‘Golden Cross’ yesterday afternoon on the 15 minute chart, with MACD trending above the waterline. Accordingly, price came into today’s session above the central pivot point, retested it just before the London open, and then headed north to find its expected high for the day (M4 on an M2/M4 day) – this after it broke a resistance (a.k.a. supply or distribution) Tom DeMark trendline immediately after the London open. This break was confirmed by MACD punching up through its trigger line. Beware though that, once price breached the M4 level, it was in dangerous territory – overbought in the area above the central pivot point, which carries a ‘sell status.’ For more on what all this techno babble is all about, you should check out the members’ area at www.forexmentor.com.

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Loonie falls close to eight-month low

Forexmentor.com Forex Trading Price Action

I hope you had a great Christmas, or that you enjoyed whatever your religious persuasion dictated. I also hope you are enjoying the USD/CAD ride. Last quote: 1635. “Canada’s growth grinds to a halt.” “Loonie falls hard on weak growth.” “Loonie falls close to eight-month low.” With news headlines like that, where do you think the loonie is going. I’ll give you a clue. It isn’t up. Where are all those pundits who were so convinced the loonie would achieve par with the USD? Hiding under a rock is my best guess, and that’s where they belong. There should be a law against ‘Talking Heads’ who don’t know what they’re talking about. At last glance, the 200 EMA was trending up on the 4 hour, 1 hour and 15 minute charts. Translation: bullish. Buy those dips folks. This ride isn’t over yet. In terms of knowing when this run will end, check out Gary Gray’s module in the members’ area at www.forexmentor.com.

See latest sample AM Review at: http://www.forexmentor.com/sampler/