Sunday, June 13, 2010
EURUSD - Minor upside
Forex Markets - EURUSD Trend Analysis
The EURUSD price action came off the Intermediate channel support last week and begins an attempt to the 1.2330 major Resistance. True Major support remains at 1.1638 (not visible on the chart). Note the moving averages tracking of the resistance of both the Minor and Intermediate channels.
Strategy, continued building of short bias positions whilst price remains below the minors. A break of minor or major 1.2330 would signal an attempt at the intermediate channels and a slow unwind of short positions off the major channel whilst retaining long hedged covers would take place for our fund. An Intermediate break and confirmations from major indices would signal bull market strategies to begin.
The EURUSD price action came off the Intermediate channel support last week and begins an attempt to the 1.2330 major Resistance. True Major support remains at 1.1638 (not visible on the chart). Note the moving averages tracking of the resistance of both the Minor and Intermediate channels.
Strategy, continued building of short bias positions whilst price remains below the minors. A break of minor or major 1.2330 would signal an attempt at the intermediate channels and a slow unwind of short positions off the major channel whilst retaining long hedged covers would take place for our fund. An Intermediate break and confirmations from major indices would signal bull market strategies to begin.
S&P 500 - A case for the downside
S&P 500 #EPMO Futures chart
The recent minor rally on the SP 500 proved nothing more then a real lack in bull action as price failed to establish even near-term minor Resistance pressure. No decisions are made as to the direction as across the US indices the picture remains unchanged DJ and NASDAQ.
Any challenge of the Major trend remains high above at 1200.75, before we need defeats of Intermediate Resistances at 1147.75 and the Fibonacci 1126.31 which quite aptly is the 50% Fibonacci level of the crunch, indecision.
Not included on this chart is the Rallies Fibonacci, price put the SP500 just over the 23% percent as the minor rally comes away from the Dow 33% support line which price touched immaculately 1036.50, of course very close to the Intermediate 1040.75 on this study chart.
Strategy, current price gives us neutral postures. We remain bear bias for the Intermediate and major terms. Initial trading shorts off 1200.75 are hedged to 10.40.75. We are likely to increase short positions at 1147.75 on a failure confirmation, thus taking away long protections as risk of breakout diminishes. Any break down of 1040.75 we see us target the true support of 975.25.
Breaks above 1147.75 we see us switch to a bull market strategy.
The recent minor rally on the SP 500 proved nothing more then a real lack in bull action as price failed to establish even near-term minor Resistance pressure. No decisions are made as to the direction as across the US indices the picture remains unchanged DJ and NASDAQ.
Any challenge of the Major trend remains high above at 1200.75, before we need defeats of Intermediate Resistances at 1147.75 and the Fibonacci 1126.31 which quite aptly is the 50% Fibonacci level of the crunch, indecision.
Not included on this chart is the Rallies Fibonacci, price put the SP500 just over the 23% percent as the minor rally comes away from the Dow 33% support line which price touched immaculately 1036.50, of course very close to the Intermediate 1040.75 on this study chart.
Strategy, current price gives us neutral postures. We remain bear bias for the Intermediate and major terms. Initial trading shorts off 1200.75 are hedged to 10.40.75. We are likely to increase short positions at 1147.75 on a failure confirmation, thus taking away long protections as risk of breakout diminishes. Any break down of 1040.75 we see us target the true support of 975.25.
Breaks above 1147.75 we see us switch to a bull market strategy.
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