We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.22% Oil - US Crude: -0.12% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7UGWflcF7Y
  • - #NZDCHF outlook bearish as the pair struggles to surmount key resistance range - #NZDCAD trading at 13-month highs, but are technical cues hinting at a pullback? - #AUDNZD is again retreating from five-year resistance – how much will it decline? https://www.dailyfx.com/forex/market_alert/2020/07/08/New-Zealand-Dollar-Analysis-NZDCHF-NZDCAD-AUDNZD.html
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.08% 🇪🇺EUR: 0.00% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.04% 🇦🇺AUD: -0.10% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lTYr3UzRhP
  • RT @DanielGMoss: A ‘second wave’ of #COVID19 cases threatens to hamper #Australia's tentative recovery Uncertainty around the future of fi…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.26%, while traders in NZD/USD are at opposite extremes with 72.66%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ksJ0N2pq6W
  • A macro forex trading guide exploring how to trade the Euro vs the Swedish Krona and Norwegian Krone through the prism of the Core-Perimeter model. Get your market update from @ZabelinDimitri here:https://t.co/n6zwlZJmGO https://t.co/F8sLZvRG1q
  • If you missed today's session on IG Client Sentiment where I discussed the outlook for the #DowJones, $AUDUSD and $USDCAD while discussing fundamentals and technicals, check out the recording below and stay tuned for a full report! - https://t.co/2wVxhtItzX
  • Wall Street Futures Update: Dow Jones (+0.213%) S&P 500 (+0.175%) Nasdaq Composite (+0.242%) [delayed] -BBG
  • RT @margaretyjy: Watch my Bloomberg TV interview at 9:00AM Singapore time. Coming in soon! https://t.co/Z6u6offept
  • The Core-Perimeter trading model helps traders understand interactions between global economies, helping to trade the assets embedded in these relationships. Get your market update from @ZabelinDimitri here:https://t.co/dKRAo00lfA https://t.co/jw5uvZBvRx
Maintained Momentum Builds EURJPY Weakness

Maintained Momentum Builds EURJPY Weakness

2012-05-04 18:40:00
Walker England, Trading Instructor,
Share:

Trend analysis can be one of the most difficult tasks a trader must face. Analysis can become convoluted due to a variety of different charts, time frames and technical indicators. The easiest way to find direction is to take a quick walk down your chart and start marking off highs and lows. We can establish an uptrend by finding price print higher highs along with higher lows. The traits of a downtrend are exactly the opposite. Downtrends will specifically look for price action to print lower lows and form lower swing highs as price progresses downwards.

Let’s look at an example. Below we have a 30minute chart on the EURJPY currency pair. Our trend analysis should begin at the far left of our graph by marking the highest high. My recommendation is to incorporate at minimum of six trading days’ worth of price bars on your chart. Today’s analysis pinpoints the April 25th high located at 107.67. From this point, the EURJPY moved 220 pips lower to 105.47 creating a new swing low on April 30th. From this point, the chart has continued to print lower highs and lower lows all the way through today’s price action. This is indicating price is in a downtrend.

Maintained_Momentum_Builds_EURJPY_Weakness_body_Picture_2.png, Maintained Momentum Builds EURJPY Weakness

Now that we have an idea of where the trend is going, we can also use our analysis to gauge market momentum. For this, I recommend blocking off our graphs into three day trading periods. This can be done by using the verticle line function inside of marketscope 2.0 . Then proceed to block your graph by drawing lines denoting Monday and Wednesdays. You can find this process outlined below on our EURJPY graph.

Strong momentum can be judged if we have the last two blocks coming to the same conclusion regarding the trend. The blocks denoted in green both conclusively show lower highs and lower lows during their respective periods. With this in mind, as a trader, I will have a stong bias to sell.This process will continue into next week as well. At the start of trading on Monday, I will draw a new verticle line on my graph denoting the weakness of the EURJPY from Wednesday the 2nd through Monday the 7th.

Maintained_Momentum_Builds_EURJPY_Weakness_body_Picture_1.png, Maintained Momentum Builds EURJPY Weakness

Using the analysis above, my preference is to continue to find opportunities to sell the EURJPY on retracements and breakouts. This is preference is in tune with our trend and will continue to be the basis for our trading unless price prints a higher high. Primary price targets for this pair reside at 104.16 as discussed in the April 11th edition of Chart Of The Day.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com .

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.