Friday, May 15, 2009

Forex Fridays

On the weekly chart, notice the clear double top formation along with the lower RSI and MACD reading on the second top. Prices fell from that level and formed a bear market flag pattern. However, prices have now fallen from that level and are moving towards support at the 50 week SMA. Finally, the RSI and MACD continue to move lower, indicating this trend will most likely continue.

On the daily chart we see the downward move from the bear market flag more clearly. In addition, prices are below all the SMAs, the shorter SMAs are below the longer SMAs and all the SMAs are moving lower. Finally, the RSI and MACD are moving lower. Bottom line -- we have a very bearish pattern developing on both the weekly and daily chart.