Forex Top 3 Chart Setups: Pound, Loonie, and Aussie
Mark Whistler is the founder of www.WallStreetRockStar.com and is the author of multiple books on trading. Mark’s newest book, The Swing Trader’s Bible – co-authored with CNBC/Fox News regular guest Matt McCall – will be on shelves in late summer, 2008. In addition, Mark also writes regularly for TraderDaily.com and Investopedia.com.
Sign up for a free trial to Forex Force with Mark Whistler, a twice-daily alert service from professional trader Mark Whistler featuring intraday and swing trading setups. Click here to start your free trial.
Top Chart Setup #1: Loonie Short-term Reversal?
Looking at a daily chart of the USD/CAD, we see that the pair has been torridly screaming upwards over the past four days. Now the CAD/USD is sitting right at 2-month descending resistance of the relative range… While the monthly chart shows there is plenty of room for the U.S. dollar to run on the upside -over the long haul, the daily charts shows a near-term pullback may be necessary, allowing the greenback time to cool for a move higher.
Top Chart Setup #2: GBP/CHF Coiling to Strike
When we take a peek at the 5-minute chart of the pound and franc (GBP/CHF), one theme is incredibly prevalent: consolidation. In the present environment, what we see is significant coiling throughout Wednesday morning. When we back up slightly and look at the larger picture, what we see is that the pound has certainly been taking a hit since July of 2007. At present, trend traders contend the present coiling is simply a bear flag setting up for another move downward…
However, bulls are likely looking at longer term charts, and calling recent events a “cup and handle” for a reversal. More time is needed to see who will prevail; however, the pair is setting up for a large move.
Top Chart Setup #3: Aussie/Yen Intraday Setup
Looking at an hourly chart of the AUD/JPY, we see that the pair fired up Tuesday night and Wednesday morning, after Australia reported quarter over quarter GDP growth – double expectations. Now, the pair is trading right at the top of the two day ascending channel, while also having potentially just put in a tweezer’s top.
It’s always risky to trade against the trend; however, the pair might need to pullback within the relevant channel, before the AUD/JPY can move higher.
