Friday, July 24, 2009

Forex Fridays

Click on all images for a larger image

Prices are consolidating in a triangle pattern. In addition, we have a declining MACD and RSI along with a bearish EMA picture (The short EMAs are moving lower, the 10 day EMA has moved through the 50 day EMA, the 20 day EMA is about to move through the 50 day EMA and prices are below all the EMA).

The daily chart shows more detail regarding the consolidation pattern. Note that prices have been moving lower for over a week. While the MACD has given a sell signal notice the lack of sharpness in the overall direction of the indicator. A true sell signal would occur at a sharper angle. That does not make this signal less valid but it is something to consider. Also note the EMA picture is very bearish -- all the EMAs are moving lower, the shorter EMAs are below the longer EMAs and prices are below all the EMAs.