Techs: still showing consolidation & little momentum

Technical patterns across many trading instruments continue to show consolidation patterns. Frustrating…yep…but that’s the fact. It seems like we’re on a slow burn towards something but, until there are clear breaks of trend lines, we won’t know towards which direction. There isn’t much momentum around on many of the charts at the moment though either. The only comfort here, then, is that we have a heap of trend lines to watch for clues about breakouts and hopefully, when they eventually trigger, they will evolve with an uptick in momentum to give traders added confidence about the moves.

USDX weekly: no breakout yet and not much momentum:

USDXweekly

EURX weekly: ditto here BUT note the recovery post yesterday’s EUR data and Draghi speech.

EURXweekly

S&P500 daily: still below the daily Cloud and key 2,000 level. Note the lack of momentum though!

S&Pdaily

Gold daily: still consolidating within a large descending wedge…these are usually bullish patterns. Also here…not a lot of momentum!

GoldDaily

TC Signals:

E/U: this closed off after just 120 pips but note the bigger picture on the weekly chart:

EU4 EUweekly

Kiwi 4hr: has given 70 pips but has barely moved. A bit of a warning?? Note the 0.625 support below.

Kiwi4

GBP/JPY 4hr: in all my enthusiasm noting yesterday’s TL breakout I forgot to note the added support of a new TC signal. It has given 180 pips BUT I’m wary of 61.8% fib support where price is currently consolidating.

GJ4hr

Other FX:

  • Japan markets are back today so I hope we see some more movement.
  • There are quite a few Religious festivals around this time of year (Eid-Ul-AdhaYom Kippur and Sukkot to name just a few)  so volume might still be low.
  • There is also a bit of data in the next 24 hours so check your calendar but the highlights could end up being the EUR LTRO data and the US Fed Chair Yellen speech.

E/J: this has bounced up off the bottom trend line. Watch for reaction to EUR data:

EJ4 EJdaily

A/U 4hr: down but watch the 78.6% fib for any support.

AU4

GBP/USD: this is also lower and looks headed to the 100% fib. Any break and close below there may target the 1.50 level:

GU4 GUdaily

U/J 4hr: classic consolidation BUT it’s becoming more squeezed BUT note the absence of momentum. Watch trend lines for any breakout with increased momentum:

UJ4

GBP/AUD 4hr: ditto here:

GA4

GBP/NZD 4hr: ditto here too:

GN4hr

USD/CAD: The CAD has weakened with the continuing slump in Oil price but note how this pair is now sitting near a ‘Double Top’ region near 1.336. I adjusted the 4hr chart TL here as this up move came with no increase in momentum. Thus, watch now for any break or respect of this region that comes with increased momentum:

Loonie4hr LoonieDaily

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