This first chart is a Heikin Ashi Candlestick chart. It's showing the first Bearish candle in a long time. The second is a standard Candlestick chart showing a Bullish Piercing Line pattern.
This pattern leaves us with a slightly Bullish forecast that depends entirely on tomorrow. Should we close with another White Candle the pattern will be Bullish, if we close below tomorrows open it will be Bearish.
The strong suit for the Bullish reversal is the way today returned from below the body of yesterdays candle. But I've been using the Heikin Ashi, and it's generally a good indication of the trend.
DDF may be very helpful tomorrow.
The Bulls have driven Price back up into the upward fork and are in the area of resistance from the downward fork. This is a critical position for the Bears to hold at just over 61.8% retrace.
A Woodies Pivot may provide the resistance required.
The Tenkan-sen and Kijun-sen are creating a Bearish cross, but the Kumo remains below.
Thanks for participating in the survey. It was for fun. I get that there are a lot of frustrated Bears out there. Maybe this will be the week we've been waiting for.
The pattern is just emerging so there are several possible forks. As it develops we should be able to refine them. My feeling is that even forks that do not work give insight to support and resistance.
The yellow fork from 2/6/2010 has been violated. The Bears must now establish a base at the 1150 - 1160 level before beginning a new mission to drive the Bulls into the 1144 salient.
The chart below shows the DDF . It has a Bullish bias. The Pivot points may be helpful in determining where Price will go today.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.