Harmonic Patterns in Forex

I must say, until I found out what Harmonic Patterns were in Forex, I was, without knowing it, blind to many aspects to what make certain moves occur at certain times seemingly without warning; no price action, or indicator could help you predict certain moves. Then comes my learning of Harmonic Patterns with use of MetaTrader4. Read more

USDJPY March 11 – Yen Gaining on Earthquake/Tsunami

Defying my own expectations of a decline for the Yen, it was actually strengthened so much so that it wiped out a week of gains made by the dollar in one day, as you see I had a USDJPY chart prepared then so much extra volume came in the few hours I was asleep at the end of Friday I was forced to create a new chart.

For next week it is quite unpredictable due to the Earthquake and Tsunami disasters hitting Japan all at once but for now I would take care in my entries and always use a logical stops. Tough day to weather this pair no pun intended at all.  In fact, I was commenting, EURUSD, AUDUSD and now USDJPY all gained on the dollar today after the Tsunami news had been digested into the markets; why would the dollar be more affected by the Japanese Earthquake and Tsunami than the Japanese Yen itself?  Because we don’t even see much selling or buying on the EURJPY, almost laying dormant today except for a move from 113.00 to 114 that did not involve large spikes like the one we see here.

AUDUSD March 11 – Wacky Friday Trading

AUDUSD is another pair I had an good chart prepared for, went to sleep, woke up and was in the stratosphere again, over 150 pips up from todays low!  So in chart one we see a large decline on AUDUS all day yesterday and today until chart two when news obviously came out affecting USD against many pairs.

But as you can see within a few short hours, days of declines were wiped out and AUDUSD is approaching 1.02 again; so for next week will we see continued buying in this pair? Your guess is as good as mine.

So, EURUSD and AUDUSD made an almost identical decline the past few days and an identical reversal on late Friday. Food for thought.

Dollar Reaches Parity with Aussie Today

AUDUSD is another pair I have been so hesitant to buy because for weeks we’ve seen AUDUSD try to make new highs above 1.02 but rejected almost every time with alot of force.

So today, the only news out of Australia seems to be the PM’s firm commitment to stand with business ties to the United States, driving their currency down even further.  We all know of Australia being one of the only companies in the region to be able to mine for rare earth elements where the US can presently not.  AUDUSD also made a similar decline today with the decline of the price of USD/GOLD, so as you can see the mining correlation between this currency (AUD) is still quite strong.

As for the AUDUSD itself, it is a clear cut down trend after trendline is penetrated late last night and we have a few different areas for entries.

EUR/USD March 10 – Incredible Selling

EURUSD is just defying technicals and following fundamentals at this point, mostly the debt concerns.

Last night provided me with quite a few areas to short the Euro as you can see on this chart, support and restiance levels, fibs and pivots provided some support but mainly the pressure was so great on the Euro that USD really gave it a run down, I’m even concerned one of my long positions I’m holding on to for the mere fact I’m “thinking” EURUSD will reach 1.4000 again, but this is just such strong rejecting.

I am reading that Greece is refusing to pay  back its debts and Portugal will be the next nation to be bailed out by the EU.  Frankly, just as in the United States, you must ask yourself where is the money coming from to bail out these trouble nations in the Eurozone?

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