Vantage FX Chart of the Day

[Vantage FX]

Chart of the Day:
Damn. No bites in my search for a successful Palladium Trader. I guess we’ll have to leave the search running in the background and turn our attention to Gold. You have to fish where the fish swim after all!

XAU/USD Daily:

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After what looked like the beginnings of a promising recovery rally, Gold as had a bit of a fall from grace. Still trapped below its most recent weekly resistance level, the move away from it has been hard and fast.

Price has now come to the bottom of it’s short term channel. It looks to have broken the level, but with no pull-back and still no break of swing lows, there’s no way I can sell this here.

I’m waiting for the pull-back and happy to sell any weakness.

Janet Yellen testifies. Read more discussion in the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
With Kuroda on the calendar today, we take a look at USD/JPY as today’s chart of the day.

USD/JPY Daily:

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With today’s daily candle, price has now entered the support/resistance zone that price has previously rejected hard from multiple times. The strength of these rejections is the important factor in making this level key.

On the other hand, it is such a clean level (inside an equally clean range) so there will no doubt be stops sitting just above here. It’s a range, and you have to keep playing the range until it’s not, but fading into the level is the mug’s trade. I like the play where we wait for any stops to be cleaned out above the level before shorting on confirmation that price is going to tuck back into the range.

Do you see opportunity trading the Japanese Yen?

 

[Vantage FX]

Chart of the Day:
A post-NFP look at one of the more important majors in today’s chart of the day.

EUR/USD Daily:

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After the NFP induced drop, price looks to have held that clean re-test of broken channel support. Is price going to reach the next level of support and look to make a new push toward parity?

Find more EUR/USD technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
With the US Dollar forging to new highs, we today take a look at where Cable sits to start the busy week.

GBP/USD Daily:

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After dropping hard to kick off November, Cable then spent most of the month clawing back most of those losses. Importantly however, price never fully retraced the entire ‘gap’ and was rejected almost as hard again to end the month back on its lows today.

We have some parallel lines that line up with lows on the daily that are highlighted here but with this sort of price action, I would be more inclined to use this channel as an indication that the sellers are large and in charge rather than be looking to play any bounce. I just can’t find a technical argument that would make me want to buy against the trend at a weak bearish channel bottom.

Find more Forex trading set-ups on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Let the bells ring out, the Swissy is once again ABOVE the SNB Floor Level!

USD/CHF Daily:

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The daily chart shows that both the initial floor level has been cleared, as well as the highs of the candle that spiked in the week before the rug was pulled out from under us. Price is now flirting with this high.

USD/CHF Hourly:

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On the hourly chart, we can see the bullish price action where price ripped out of the zone basically without a single pull back. A picture of strength, but the pull-back will come.

Do you see opportunity trading USD/CHF?

 

[Vantage FX]

Chart of the Day:
A return to clean, clear charts for today’s chart of the day!

AUD/USD Daily:

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While still taking in the longer term view of AUD/USD price tucking back above weekly trend line support, today’s chart strips everything back to the basics in search of a long entry.

Price has broken out of its short term bearish trend line and re-tested previous resistance this time as support. From here, the noted Aussie Dollar strength has helped kick price off the level hard, printing the biggest bullish daily candle for quite some time.

Do you see opportunity buying AUD/USD at these prices?

 

[Vantage FX]

Chart of the Day:
Further to yesterday’s AUD technical analysis post, we stick with the Aussie Dollar theme and today take a look at a couple of AUD/CAD charts.

AUD/CAD Weekly:

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The AUD/CAD weekly chart follows the familiar pattern of short term AUD strength encountering channel resistance.

AUD/CAD 4 Hourly:

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The strength followed by the resistance price has encountered is shown perfectly on the 4 hour chart. From here, I am watching the way that price is coiling on the clean double top that it has presented us where we know stops are accumulating above.

Do you see the stops accumulating at the highs lasting?

 

[Vantage FX]

Chart of the Day:
Stock indices traders didn’t escape unscathed either, with the German DAX taking a heavy 3.6% hit.

DAX30 4 Hourly:

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This chart shows just a simple parallel line taken from resistance, drawn from a logical previous swing low to find a potential area of support.

With horizontal resistance still a bit lower, this isn’t a level to be blindly buying off, but it could act as a short term level to determine trading direction off of.

Do you see opportunity trading the DAX post ECB?

 

[Vantage FX]

Chart of the Day:
Today’s chart of the day takes a follow up look at last Monday’s GBP/USD chart of the day in which we took a look at a clean bearish channel that price has been creeping down between over the past few months.

“I just can’t find a technical argument that would make me want to buy against the trend at a weak bearish channel bottom.”

Well we certainly found a reason didn’t we! Just a certain Italian named Mario Draghi.

GBP/USD Daily:

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While price is re-testing those previous swing low support levels this time as possible resistance, I am inclined to keep my bearish bias on the pair in tact and stay looking for setups in the direction of the trend.

Do you see opportunity trading Cable parallels?

 

[Vantage FX]

Chart of the Day:
Lets take a closer look at the Oil chart.

Oil Daily:

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Taking a look at our first daily chart, we can see that oil, after failing to hold onto any sort of sustained break out, has been hugging its major bearish trend line. After last night’s price action, the bulls look to have finally given up on the level and we have now dropped back inside the trend line.

From here, we will be watching whether price re-tests the trend line as resistance again and look to short from there.

Oil Daily 2:

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The second daily chart just shows a simple parallel drawn from the major trend line above, but set to line up with some of the short term bottoms. The fact that this level lines up perfectly with the previous swing bottom at 37.75 gives Oil a nice confluence of support of which could give bulls their last stand.

Do you see opportunity trading Oil?