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Tuesday, May 18, 2010


Here are a couple more charts of interest that show
the Linear Regression (thin upward lines)
This first chart shows the 1095 area as support.
This is the EUR/USD with Andrews Pitchfork,
Persons Pivots and Linear Regression.

Market Recap:

Today the Bulls lost their chance to act on the Doji Reversal.

As I said 'up in the morning to the Green fork, and down in the afternoon with perhaps a Black Closing Marubozu'. The small tail does officially make it a Long Black Candle, but it's only a 3 point tail so I claim it.

Price is currently at the lower edge of the Daily Kumo. This Kumo has been in control for nearly two weeks.

I did say 1135 would be a very Bearish signal if broken. Now that Price is below the Hourly Kumo complete with a Bearish cross too, the market is taking a rest on the bottom of the Daily Cloud. This support is fortified by the Daily Tenkan-sen. So it may take a day or two for the Bears to make a third attempt.

Looking forward - 1110 through 1085 will be the next area to concur. There is a heavy a amount of volume in this section, but when it is broken, there will likely be a flood of sell orders as this is also the bottom tine of the March 09 fork. Linear Regression and Fibonacci are indicating 1095 as support so that also fits with the Volume Profile

1040 is the going to be a real test.
But as you can see there is a 100 point hole below it.
Using Fibonacci Extension reveals 911 as a likely target

10:30 EST

DDF has a Neutral bias today.

The Bulls are getting confirmation of the Bullish Reversal described in last nights Market Recap.
Price is now approaching the top tine of the Green Fork as expected. If this fork is significantly breached the Bulls may be able to run the market up to the top of the Alternate fork near 1208.

My hourly indicators are currently Bullish and Price is now above the Kumo. There is strong support from the Kumo is at 1135. Breaking this support would be quite Bearish.

Price is toying with the the high end of the Persons Pivots, and PPS is Bullish.

Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.

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