Friday, January 23, 2009

Forex Fridays

Click on all pictures for a larger image

Notice the following on the weekly chart:

-- Prices rallied from a low of 71 at the end of last summer to 87 near the end of last year. Prices have fallen from the level and subsequently rallied again but have not gotten back to the 87 level. In other words, the rally petered out.

-- The upward sloping trend line has now below resistance: notice how prices edged up against the line, but didn't cross it until recently. And then the post crossing candle pattern is a shooting star -- a weak formation.

-- The 50 and 20 week SMAs are moving higher

-- The 10 week SMA is moving lower

-- Prices are above all the SMAs

-- The RSI broke its upward moving trend

-- The MACD is moving lower

Notice the following on the daily chart:

-- Prices have been increasing since mid-December

-- Prices are above all the SMAs

-- The 10 day SMA is about to cross over the 50 day SMA

-- The MACD is rising

-- The RSI is rising

Bottom line: the weekly chart says prices have peaked. However, the daily chart says prices can move higher. I would split the difference by saying prices have some upside to the previous peak.