The NZD/USD pulled a counter-trend move

Forexmentor.com Forex Trading Price Action

The ‘KIWI’ (NZD/USD) pulled a counter-trend move today. In other words, it ‘yanged.’ Yesterday, as I said it would, price topped out post-AM Review, and then swooned. That run down ended in the form of a Tom DeMark resistance (a.k.a. supply or distribution) line break – confirmed by MACD punching up through its trigger line. A Joe Cheung price projection saw price rising today to just above the M3 level, whereat it collapsed back down to M2 – the expected low for today – this being an M2/M4 day.

I still maintain that this pair has topped out, from a position trading point-of-view. From a day trading point-of-view, the dumb money will always try to put a bid on this pair, offering up opportunities to trade the ‘yang’ (counter-trend move) – the ‘yin’ being the overall trend (down). In other words, ‘always forward, never straight.’ This pair will not drop like a stone. It will meander its way down in saw-tooth fashion.

For more on what all this bafflegab is about, find out what else the smart forex traders know by visiting the members area at http://www.forexmentor.com/.

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Sell the NZD/USD rally in a downtrend

Forexmentor.com Forex Trading Price Action

Yesterday, on the NZD/USD pair (‘KIWI’), I talked about the topping-out process. Today, what I see is MACD turning down on the weekly chart – MACD already having penetrated its trigger line on the daily chart. Not only that, I do believe we are seeing the formation of a downtrend continuation pattern on the daily as well.

Now, looking at the lower-level charts, all I see happening is price rising on the 15 minute chart to challenge the 50x100x200 EMAs on the 4 hour and 1 hour charts. Translation: Price is spitting in the wind, but don’t tell the dumb money that, as we Big Dogs are getting set to sell this rally in the overall downtrend. Got it? Sure you do!

Fundamentally, recent GDP data disappointed, so it was just a matter of time before the technicals fell in line. Now, we have synergy between those two metrics. For more on the inner workings of technical analysis, as it relates to the forex, please join the 10% of traders who are on the winning side of their trades. You’ll find them in the members’ area at www.forexmentor.com.

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The NZD/USD pair has topped out

Forexmentor.com Forex Trading Price Action

The KIWI (New Zealand dollar) NZD/USD has topped out folks. You heard it here first. Recent GDP data disappointed.

Technically, last night – well before the London open today – the charts said it all: The weekly is displaying a Head and Shoulders pattern, there is a Tom DeMark resistance (a.k.a. resistance or supply) line in place on the daily chart, 50x100x200 Death Crosses times three on the hourly chart, etc. Need I say more?

Today, price came into the session, and met with resistance at the central pivot point – this after the 50x100x200 EMAs performed three Death Crosses back-to-back. Price then swooned to M1 – the expected low on this M1/M3 day, whereat it stopped dead in its tracks.

These pivots work folks, if only you would believe it to be so. Stay tuned for more AM Reviews that set you straight but, in the meantime, get the straight skinny on the forex trading facts at www.forexmentor.com.

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

The USD/CAD has nowhere to go but up

Forexmentor.com Forex Trading Price Action

Last night, well before the London open, the 50x100x200 EMAs were all trending up on the 4 hour and 1 hour charts, and MACD on the 15 minute was heading up towards the waterline – with good angle and separation between it and its trigger line. I’m talking about the USD/CAD pair – my favorite of late. (It is making nothing but money for me.) Price came into today’s session and found support at the central PP, before it sought out its expected high for the day – M4 on this M2/M4 day – whereat it paused. Wherever you see major weakness with this pair, you should be buying, as it has nowhere to go but up – given the fact that the Canadian economy stinks right now, pardon my language. Sure, the economy is adding more jobs. Witness the headline in the Globe and Mail Saturday, January 6: “Slowing economy, more jobs – what gives?” But, you want to know something? The article goes on to say that nobody, including all the talking heads so-called experts, knows what that means. So, therefore, you have to resort to good ole fashioned technical analysis to keep your eye on the ball. All I see in the higher-level charts (weekly, daily) is a march to the moon. This trek is not over yet folks. Trust me! Of course, you’re all in this pair now as a long-term position trade, right? Please don’t say wrong, as I have been beating this drum since September, which is when I got in big time – having added to my position several times since then. It’s called, ‘Buy those dips in an up trend.’ Anyways, why don’t you just head on over to the members area at www.forexmentor.com and bask in the glow of all those trading goodies available only to our wonderful family members. See you at the top and at the bank. Ka-Ching!

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