Friday, March 5, 2010

Forex Fridays

I've drawn several possible upward sloping trendlines to show the basic fact that the uptrend has been broken.

A.) Notice there is no clear consolidation pattern -- no clear triangle/pennant/head and shoulders. Instead, prices are simply moving between roughly $23.50 and $23.90

Note the price EMA picture.

First, the 10 and 20 day EMAs are now moving sideways, indicating the trend is weakening. However, the 50 is still moving higher.

Also note the 200 day EMA is moving higher, indicating the long-term trend is now up.

So far, this chart looks to be consolidating.