Commentary on the AUD/USD

Forexmentor.com Forex Trading Price Action

If you take a look at the 15 minute chart for the AUD/USD pair at the London open for today – Thursday, May 17/07, you will notice two things: negative divergence on MACD to price, and a downtrending 200 EMA. Price had nowhere to go but down. Price was in the equilibrium (consolidation) phase of a downtrend continuation pattern, and MACD had already neutralized back up to the waterline – and beyond.

For more on price patterns and what all this techno babble is about, wander on over to the members area at: www.forexmentor.com

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Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

Today’s price action on the USD/CAD pair (15 minute chart) was totally predictable. Price came into today’s session in a downtrend continuation pattern, which is explained in the members area at forexmentor.com. Price was repelled at the London open (~ 3 am ET) by the central pivot point. If you take a look at the 200 EMA, it was trending down as well. Further, by that time, MACD had neutralized back up to the waterline.

It’s interesting that, on the higher level charts, like the daily, it could be that the pair is trying to bottom out, which would represent a good position trade to the long side. I’ll keep an eye on that, and report back in future commentaries.

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