Is Trading With Technical Analysis Profitable?

By Sylvain Vervoort – What is technical analysis and is trading based on technical analysis profitable?

Lets start with my definition of what I consider is technical analysis of financial price data. Technical analysis is using graphical charts to identify buy and sell patterns every possible way. With statistics proving that using these patterns gives a better chance for successfully trading the stock market. Let’s have a look at what kind of information we are looking for on the chart.

A first basic pattern is the breaking of a trend line and is a very powerful indication that the trend is reversing. A closing price breaking a downtrend line is generally a confirmation that the last turning point is a trend reversal.

A second basic pattern for making buying or selling decisions is the breaking of a horizontal resistance level, or a price turning at the level of a horizontal support line found at price turning points.

A third possibility is making use of more complex reversal and continuation price patterns like a head and shoulders reversal pattern, a triangle, rectangle or diamond continuation pattern, and so on.

A fourth possibility is using the Eastern candlestick chart instead of the normal Western bar chart. Candlesticks show a number of bottom and top reversal patterns and some continuation patterns that can be used successfully for entering or exiting a trade. These patterns have exotic names like bullish and bearish engulfing patterns, doji, harami, hanging man, evening and morning star and much more.

A fifth possibility is counting Elliott impulse and correction waves. Ideally you can enter an up move just after the start of a medium to longer term impulse wave 3, generally after an ABC correction wave for the creation of correction wave 2. Most of the time a 3-wave has an extension with another impulse wave of a lower degree.

A sixth possibility is using oscillators and indicators looking at overbought and oversold areas and specifically at normal and hidden price/indicator divergences announcing trend reversals or previous trend continuations.

Can you imagine the decision making power you have for buying or selling a stock combining all of these techniques? Most reversals in price are announced by more of the previous mentioned techniques. But there is more than just the technical analysis.

Before we can answer the question, “is trading based on technical analysis profitable?” we have beside the use of technical analysis to define entry and exit points, the need for good money and risk management. First let’s talk about money management. Personally I prefer the method that has proven to be the most profitable with the best results in every test I made. That is using a limited fixed number of stocks where every stock gets an equal part of the capital at the start, but there is no profit or loss sharing between the stocks. It has also the big advantage that it is so much more easy to follow-up just a small number of stocks with detailed technical analysis.

Risk management makes sure that the risk-to-reward ratio is in favor of the reward. Opening a trade you must limit the risk and make sure that the first reward target is better than the risk. Future price projection techniques will give you an estimate as to where price can go. Once an open position, you must also use a trailing stop method to make sure you keep the profit and that you will close the trade if standard technical analysis fails. Future price estimates can be made using Fibonacci projections crossing pitchfork channels and a number of other techniques.

It should be clear by now that the pure technical analyst does not look for fundamental data about the stock he is trading. You could basically leave out the name and even the time period from the chart and the technical trader will still be able to do the job. Because price data moves in a fractal way you can basically trade with the same rules in any time frame, from bar charts using minutes, hours, days or weeks.

So, the big question again, is trading based on technical analysis techniques profitable? YES it is! The easiest way for me to prove this is using an automatic trading system based on technical analysis to buy and sell. The SATS2 auto-trading-system I am using is now about 2 years old, does not use any optimizing and is still giving good results over the last 7 months before today’s date of October 27, 2009. Since the start of the test period on March 13, 2009 and closing on October 23, 2009, or about 7 months, it generates a profit of 156% using my own 38 US stocks selection that I am following-up closely.

Since this is an automated system, it has its limitations and is certainly not as intelligent as you can be, looking at the chart yourself. It is clear that making manual buy and sell decisions should still give an even much better result. But I just wanted to make my point here that trading based on technical analysis is profitable.

In this article I tried to answer the question of what is technical analysis and is trading based on technical analysis profitable. I hope I have convinced you that yes it can be very profitable.

About the Author

Want to learn everything about technical analysis? You can find free articles at my website: Sylvain Vervoort is a trader and the author of a new book “Capturing Profit with Technical Analysis” and a regular contributor to Stocks & Commodities magazine.

New Bull Market for Uranium Ahead?

New Bull Market for Uranium Ahead?

By Justice Litle, Editorial Director, Taipan Publishing Group

Uranium soared from $10 a pound in 2000 to a stunning $136 a pound in 2007 – and then the bottom fell out. After three lean years, could another bull market be ahead?

According to the Ux Consulting Company, which tracks the price of uranium, the July 26 weekly spot price for U308 was $46 per pound. That is a 15% spike from the February lows around $40 per pound.

So does uranium at $46 per pound count as cheap, or expensive? That depends on how you look at it…

In the year 2000, uranium was well and truly dirt cheap. Thanks to a seemingly endless supply from decommissioned nuclear stockpiles, no one wanted the stuff… and the price of U308 (a standard mix of uranium oxides) fell to just $10 per pound.

Seven years on, however, uranium was at the pinnacle of a stunning bull run, riding a wave of increased demand for nuclear power plants around the globe. By the year 2007, U308 had hit an incredible $136 per pound – more than a 1,200% price increase from the bear market lows.

But then the bottom fell out for uranium prices – again – as hard assets got abandoned in the great financial meltdown. So now, in the mid-$40s, the uranium spot price is well off its year-2000 lows, but merely a third of bull market highs. Does that make it cheap?

China seems to think so…

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The Dragon Inhales

“China is buying unprecedented amounts of uranium,” Bloomberg reports, “signaling that prices are poised to rebound after three years of declines. The nation may purchase about 5,000 metric tons this year, more than twice as much as it consumes, building stockpiles for new reactors…”

Keep in mind, too, that China is buying at the “long-term price,” which is higher than the spot price. A few weeks back, the dragon agreed to lock in uranium purchases of “more than 10,000 tons over 10 years” from blue chip miner Cameco (CCJ:NYSE).

“China’s demand is insatiable,” says analyst Dave Dai in Hong Kong. “They will have to take almost whatever is available.”

India is hungry too. Jagdeep Ghai, the finance director for Nuclear Power Corp., reports that India’s uranium needs could grow tenfold in the coming years.

The name of the game now is locking in supply. In a world where the flow of oil is uncertain – and emerging market energy demand is certain to surge – nuclear power is a critical fallback. And that means more nuclear reactors in the works.

According to the World Nuclear Association (WNA) , China alone has 24 reactors under construction – and may have 200 reactors in play by the year 2030. Russia is building another 10… South Korea six… and India four. There are also new reactors under construction in places like Finland, France, Japan, Argentina, and even the United States.

(If you would like to read more of my investment commentary on other topics, sign up for Taipan Daily.)

A Unique Market

Uranium is not like most other commodities. As one might expect, the “nuclear” tie-in makes it a highly regulated market. Not anyone can just buy it or sell it. (Although there is a uranium “ETF” of sorts – Uranium Participation Corp (U:TSE) – trading on the Toronto Stock Exchange.)

The supply profile for uranium is also unique. In the short run, there appears to be plenty of uranium to go around. The long run, though, is another question entirely. With all the new reactors slated for construction – and the price of oil a wildcard – forward-thinking players like China are thus happy to start stockpiling uranium more aggressively here and now, “just in case” demand gets out of hand later. Nor is China the only country to be thinking this way.

Another factor unique to the uranium market is what one might call the “Cold War effect.” The reason uranium became absurdly cheap a decade or so ago was because of massive Cold War era stockpiles. For a time the world had uranium coming out of its ears as Soviet-era warheads were scrapped. Even today there is still Cold War supply to work through – but that supply will not always be there.

In fact, were all the Cold War uranium to be used up tomorrow, prices would head into the stratosphere. Current uranium demand outstrips new production by a huge margin – something on the order of 100 million pounds per year – and it’s only the dwindling stockpiles (those old warheads again) that make up the shortfall.

In addition to finite Cold War supply, uranium has its own version of the “peak oil” profile. Virtually all the cheap and easy uranium deposits have been tapped. As with crude, what’s left are the hard and dangerous deposits located in politically unstable parts of the world, like Kazakhstan and Niger. This is another factor that could push uranium prices higher.

The Large-Scale Alternative

When disaster unfolded in the Gulf, we wrote that the BP oil spill would be a game changer for alternative energy. That assessment still holds true. But it may prove out that the biggest “alternative” winner of all, in respect to deepwater drilling fallout, is nuclear energy.

The main trouble with wind power, solar power and the like, is the challenge of large-scale deployment. With each passing day the underlying technology improves – which moves us closer to getting the economics right – but there is still a long way to go.

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Nuclear power, in contrast, is already tested and proven. It has already been deployed on a massive scale. Take modern-day France, for example, a country known for (among other things) bucolic landscapes and old-world farming techniques. Roughly 79% of France’s electricity is produced by nuclear power, the highest percentage in the world.

Nuclear energy has more or less been embraced as a vital, large-scale alternative to fossil fuels. Even aggressive green advocates, who have grumbled over safety and waste disposal issues with nuclear in the past, now grudgingly admit that nuclear power has clear advantages in reducing air pollution and C02 emissions (both serious problems in China).

Combine this reality with good prospects for oil back above $100 per barrel before too long, and you have political “safe passage” for the upcoming nuclear renaissance. Put it all together, and it’s not hard to accept the assessment of RBC Capital Markets that uranium could rise another 32% in price next year. That makes a number of companies in the mining and reactor space worth exploring.

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About the Author:

Justice Litle is the Editorial Director of Taipan Publishing Group, Editor of Justice Litle’s Macro Trader and Managing Editor to the free investing and trading e-letter Taipan Daily. Justice began his career by pursuing a Ph.D. in literature and philosophy at Oxford University in England, and continued his education at Pulacki University in Olomouc, Czech Republic, and Macquarie University in Sydney, Australia.

Stock Trading: We analyze Akamai Technologies AKAM

By Adam Hewison

This stock looks lower based on a classical technical pattern

This is the first time I have looked at this particular stock and it appears to chart beautifully. The stock I am referring to and analyzing today is Akamai Technologies Inc. The symbol for this stock is AKAM and it is traded on the NASDAQ.

In this short video I share with you a classic chart pattern that I’ve seen thousands of times before in different markets. The pattern is very reliable and seems to work well most of the time. Some people believe in this type of technical analysis, however, some folks feel that it may as well be voodoo.

For myself, I believe that history and markets repeat themselves based on human nature, which has not changed in thousands of years.

All the best,

Adam Hewison
President of
Co-founder of MarketClub

To see more of Adam’s Videos click here or sign up for Adam’s Free 10-part Professional Trading Course.

Windows Support and Resistance in Stock Charts

By Sylvain Vervoort – With this article I will introduce you to the practical use of windows or also called gaps in price charts.

An up window in a bar chart appears when the low price of the current bar is higher than the high price of the previous bar. A down window in a bar chart appears when the high price of the current bar is lower than the low price of the previous bar.

As long as a window is not closed, the whole area of a window represents support or resistance for future price moves. In a down-window the whole area of the window represents resistance. This window is closed and consequently resistance has no further meaning when price turns up and completely covers the window. The resistance is only broken when it is penetrated with a closing price. The size of the window has no importance.

With an up-window the whole area of the window represents support. This window is closed and consequently support has no further meaning when price turns down and completely covers the window. The support is only broken when it is penetrated with a closing price. Again the size of the window has no importance.

I will talk about four window types: the common window, the breakaway window, the continuation window, and the exhaustion window. A breakaway window, a continuation window, and an exhaustion window represent a much more important support or resistance compared to the common window. Windows are part of support and resistance in a chart and can be used for initial stops because of their support as well as for price targets because of their resistance. According to the type of window we can expect to be at a trend reversal, a trend continuation or near a trend conclusion.

A common window is so-called because it is common in the normal price evolution. Most of the common windows can be found during periods of price consolidation when the price is moving sideways. A common window does not give any indication about an expected price move. Generally, it only can be used as a support and resistance level for the short term. On a daily chart, common windows will be closed most of the time within a couple of weeks.

A breakaway window will appear with a change in the medium or longer-term price trend. A rising breakaway window appears at the start of a new uptrend. About three-quarters of the rising breakaway windows on a daily chart are only closed after one year. Only about 2% will be closed within a week. Usually the breakaway window is created with high volume or a gradually higher volume a number of bars before the breakaway.

About 60% of the falling breakaway windows on a daily chart are also closed within a year and only about 2% will be closed within a week. The breakaway window is created with high volume or gradually higher volume some bars before the breakaway.

A continuation window can be found about halfway through a running trend, often after a short consolidation pattern like a flag or a pennant, or a bigger correction pattern like a triangle or a rectangle. Almost all of the rising continuation windows on a daily chart are closed within a year. Just about 5% will be closed within a week. The continuation window is normally created with high volume or a higher volume a number of bars before the continuation window.

Almost 100% of the falling continuation windows on a daily chart are also closed within a year and about 5% will be closed within a week. The continuation window is created with high volume or a gradually higher volume a few bars before the falling continuation window.

The exhaustion window is found near the end of the running trend. Often, you will see a bigger window with highly volatile price moves. Almost all of the rising exhaustion windows on a daily chart are closed within a year. As many as half of them or 50% will be closed within a week. The exhaustion window usually is created with high volume or higher volume a number of bars before the exhaustion window.

Almost all of the falling exhaustion windows on a daily chart are closed within a year. As many as half of them will be closed within a week. Usually, the falling exhaustion window is created with high volume or a gradually higher volume a number of bars before the falling exhaustion window.

As we have seen already, an uptrend or a downtrend with a breakaway, continuation and exhaustion window is mostly created with high volume or a gradually higher volume a number of bars before these windows. Also you will notice many times price chart patterns before these windows. Windows are therefore most usefull as a confirmation pattern indicating the start of a new trend, the continuation of a trend or the end of a trend.

About the Author

Want to learn more and see some examples about stock chart window support and resistance? You can find learning material on basic technical analysis techniques for free at my website: Sylvain Vervoort is a trader and author with contributions to Stocks & Commodities Magazine.

Forex News: US GDP grows by 2.4 percent in Second Quarter


The U.S. economy expanded in the second quarter of 2010 for a fourth straight quarter as business investment rose by the most since 2006, according to a release by the U.S. Commerce Department. The first “advance” government estimate showed that the U.S. Gross Domestic Product grew on an annualized basis by 2.4 percent in the April to June quarter following a revised real 3.7 percent growth rate in the first quarter. This marked the fourth straight quarter of U.S. economic growth after the GDP had fallen for four straight quarters over the second half of 2008 and the first half of 2009.

Despite the increase,the GDP data failed to equal market forecasts that were expecting GDP growth to expand by 2.6 percent for the quarter.

Business investment spending was the key driver of growth in the quarter and rose by 17.0 percent following an advance by 7.8 percent in the first quarter. This marked the largest increase in this sector since the first quarter of 2006.

Consumer spending continued to increase and rose by 1.6 percent in the second quarter although at a lower level than the 1.9 percent increase registered in the first quarter. Consumer spending makes up roughly two-thirds of U.S. economic activity and the first quarter increase had marked the largest gain since the first quarter of 2007.

A sharp rise in imports worked to contain the GDP growth for the quarter as imports surged by 28.8 percent in the second quarter following a first quarter rise of 11.2 percent. Exports of goods and services, meanwhile, grew by 10.3 percent in the second quarter following a gain of 11.4 percent in the first quarter.

Also contributing to the economic expansion was an increase in spending by the federal government which rose by 9.2 percent following a 1.8 percent expenditure in the first quarter. Private business inventories also added $75.7 billion in inventories for the second quarter which contributed 1.05 points to the GDP growth.

The second release for the U.S. GDP is scheduled for August 27, 2010 at 8:30 A.M. EDT.

AUD/NZD Bearish Correction May be in the Making

By Anton Eljwizat – The volatile of the AUD/NZD pair continues to be affected by the volatile forex market. The last two days have seen a lot of bullish strength in the AUD/NZD pair. However, as I demonstrated below, it seems that the pair’s bullish run may have run out of steam, and a bearish correction could be underway soon. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.

• Below is the 8-hour chart of the AUD/NZD currency pair.

• The technical indicators that are used are the Relative Strength Index (RSI) and Slow Stochastic.

• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.

AUD/NZD 8-Hour Chart

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Forex News: USD Weighted by Fed Comments

The dollar fell to an 8-month low against the Japanese yen in Asia this morning as dovish comments by a US Federal Reserve official overnight made investors speculate upcoming US economic indicators will come in weak.

The comment came from St. Louis, Missouri, Federal Reserve President James Bullard who said that the US is closer today to a Japanese-style deflationary period than ever in US history. He continued by adding that buying more Treasurys would be one option to help stave off the threat. The comments fueled recently prevailing views that the world’s largest economy is losing its growth momentum at a faster pace than analysts had expected.

The University of Michigan (UoM) will release a monthly consumer sentiment survey at 13:55 GMT today. A Dow Jones poll of economists expects the headline index will deteriorate to 67.2 in July from 76.0 in June. If the data misses the consensus, US share prices and Treasury yields will decline, which would push the greenback down to as low as 85.00 against the yen.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Critical Time For the Euro Tonight – July 30, 2010

EURUSD july 30, EUR, USD, UD dollar, euro, usd eur, usd euro, eur usd euro usd, forex, forex trading, currency trading,online trading, daily forex picks

Good day forex fans! Here’s a closer look on the EURUSD pair. Actually, the pair has continued to rise and has even broken the 1.3000 resistance. Back in my last post about it back in July 26 (kindly see it here), I mentioned that a break above 1.300 could propel it further north. Well, the pair has risen for awhile and even touched the 1.3100 level briefly. Though, it has retraced back around 1.3000 again. At present, the pair is just trading above the mentioned level which consequently is where the uptrend line lies. Now, it becomes more crucial since a break of the uptrend line could send it down to 1.2800 or even at 1.2700. But if the 1.3000 support and the uptrend line holds, the pair could be on north bound once again.

Earlier today, the euro has lost its appeal versus the dollar due to the unexpected decline in Germany’s retail sales (-0.9%) for the month of June after it posted a 3.0% gain in May. Moreover, news that Spain’s Aaa rating may be downgraded by at most 2 level by the international ratings agency, Moody’s also placed more selling pressure on the EUR. Remember that other countries in the euro zone like Spain, Portugal, and Italy, aside from Greece, are also suffering from fiscal difficulty. At present, the Spanish government is still trying to slash their budget deficit, which is the third largest in the euro zone. It already received credit downgrades from Standard and Poor’s and Fitch back in April and May. If Moody’s follows suit, then the confidence in the euro zone’ economy and the euro could take another blow.

But that’s for the coming week or so.

For today, the EUR could experience some volatility upon the release of the US’s second quarter GDP report. The US’s growth for the second leg of the year is seen to have slowed to 2.5% from 2.7%. Several other data indeed point to a reduction in growth or even worse. For one, durable goods orders including the core figure have unexpectedly dropped in June by 1.0% and 0.6%, respectively. New home sales likewise dipped by a hopping 30% in May. May retail sales have also dropped by about 1.0%. In case Us’s 2Q GDP comes in as projected, the EURUSD could just trade in a range bound fashion. A worse than anticipated outcome, however, could spark some risk aversion which would lead investors to back to the safety of the USD. Stay tune for the report tonight at 12:30 pm GMT!

More on

EUR/USD Still Hovering Around 3-Month High

Source: ForexYard

After hitting a three month high against the U.S. dollar in trading yesterday, the euro took some slight losses last night, falling some 30 pips against the greenback. The overall trend for EUR/USD is still up, especially ahead of the U.S. Advance GDP figure, which is forecasted to show a slight decrease from the previous report.

Economic News

USD – Dollar Manages Slight Gains, But Remains Low Overall

A less than encouraging Unemployment Claims report released yesterday did little to assuage investor fears in the pace of the U.S. economic recovery. Following the report’s release, the dollar not only hit a 3-month low against the euro, but also recorded further losses against both the yen and Swiss franc. EUR/USD has since experienced a slight correction, but still remains dangerously close to reaching new highs. Currently the pair is trading around the 1.3060 level, down from 1.3080 early last night.

USD/JPY fell fairly consistently throughout yesterday and into overnight trading. Confidence in the greenback as a safe haven currency is clearly in question, and the yen appears to be the one currency investors are turning to. USD/JPY has fallen over 80 pips in the last 24 hours, and with no positive U.S. news forecasted, the dollar’s bearish trend is likely to persist.

Today, traders will want to pay close attention to the U.S. Advance GDP report, set to be released at 12:30 GMT. Analysts are forecasting a decrease in the GDP figure from last quarter, which if true, will likely cause investors to continue to sell the dollar. Should the GDP come in at or below the forecasted 2.5%, expect further dollar losses against the yen, euro and possibly British pound.

EUR – EUR Records Gains on USD, Losses Against JPY and CHF

While the euro has reached a 12-week high versus the U.S. dollar, is has tumbled against some of its other main currency rivals over the last 24 hours. Recent news out of the E.U., has given investors the impression that the economic recovery in Europe is moving faster than in the United States.

EUR/USD subsequently reached above 1.3100 in trading yesterday. At the same time, EUR/JPY fell some 75 pips in overnight trading. EUR/CHF fell over 100 pips in the same period of time. It appears that with the exception of the dollar, risk aversion is still present in the marketplace.

Today, euro traders will want to keep an eye on the E.U. unemployment figure, set to be released at 09:00 GMT. While analysts are forecasting European unemployment to remain the same from last month, the slightest change could create volatility in the marketplace. A figure below 10% may generate some risk taking, and could lead to gains for the single currency. In addition, traders will want to watch out for the U.S. Advance GDP report. Should there be a drop in the U.S. GDP, expect EUR/USD to make an even starker jump than yesterday.

JPY – Safe Haven Yen Climbs Vs. Rivals

The Japanese yen has continued to make gains against its main currency rivals, as risk aversion continues do be the predominant market sentiment. USD/JPY fell some 40 pips in overnight trading and currently stands close to the 86.50 mark. GBP/JPY fell some 80 pips in the same amount of time, with the pair currently trading around the 135.00 level.

Analysts attribute the continuous yen gains to the overall slow pace of the global economic recovery, combined with positive Japanese economic indicators. Last night’s household spending report came in much better than expected, and generated solid momentum for the yen.

Today, traders will want to pay attention to not only the U.S. Advance GDP figure, but also the European unemployment number as well as Swiss KOF Economic Barometer. With most of these indicators forecasted to show little if any improvement in their respective economies, the yen should have no trouble extending its gains. That being said, should any of the news come in better than predicted, JPY may take some midday losses.

OIL – Crude Oil Jumps in Overnight Trading

The price of crude spiked in overnight trading, moving up some 165 pips as investors eagerly await the impending U.S. Advance GDP report. Analysts attribute the increase in oil prices, to the overall weak dollar, which makes purchasing the commodity more attractive to international investors. Currently, crude oil is trading around the 78.10 level.

With the U.S. GDP report today expected to show a drop from last month, crude prices will likely continue to rise should the dollar sink lower. At the same time, should the GP report signal any gains in the U.S. economy, crude prices may fall in afternoon trading.

Technical News


The pair continues to move higher and broke above the 1.3100 level but stopped short of 1.3120 which coincides with the 38.2% Fibonacci retracement from the previous bearish trend that began in December of 2009. Should the pair move above the 38.2% retracement, the next major Fibonacci level of 50% rests in line with the resistance level at 1.3500. Short term resistance comes in at 1.3240.


Quiet trading had the pair in a tight range and ended in a doji candlestick formation as the pair rose to a new high at 1.5561 before falling back to the support level at 1.5575. Momentum appears to be behind the pair as the Momentum (7) indicator reached a new high yesterday, in step with the new high for the bullish trend. The next resistance levels rest at 1.5725 followed by 1.5820.


Yesterday the pair broke out of the bearish flag pattern on the 4-hour chart, falling below the lower line in sync with the long term trend of the pair. The breach of the lower line took the pair as low as the 86.25 support level where the price failed to go lower. A breach below the support level could take the pair to the next support on the weekly chart at 85.85, followed by 85.30.


The USD/CHF cross has been experiencing bearish behavior in the past 2 days. However, there is technical data that supports a bullish move for today. The RSI on the 4-hour chart indicates that the pair floats in the oversold territory, leading to the conclusion that an upward correction is imminent. Going long with tight stops may pay off today.

The Wild Card


The AUD/NZD sustained upward movement and has finally pushed its price into the over-bought territory on the 8-hour chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Forex Daily Market Review July 30, 2010

By eToro – Strong sentiment combined with a austerity vote in the Italian upper house, pushed the Euro above 1.30, and to resistance at 1.3094. The EUR/USD is likely to test the 1.3199 resistance level.

Click here to read the full daily Review

Forex Market Analysis provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.