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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Trump says he recommended governors deploy National Guard, told them to deploy guard to 'dominate' streets -BBG
  • US President Donald Trump: His first duty is to defend the country, people. Instances of violence 'acts of domestic terror'. Mobilizing civilian, military resources to stop rioting -BBG
  • 🇳🇿 Building Permits MoM Actual: -6.5% Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 GDP Growth Rate YoY Final due at 23:00 GMT (15min) Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 GDP Growth Rate QoQ Final due at 23:00 GMT (15min) Previous: 1.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 Inflation Rate YoY due at 23:00 GMT (15min) Expected: -0.2% Previous: 0.1% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇳🇿 Building Permits MoM due at 22:45 GMT (15min) Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • #Gold prices have rallied by as much as 3% from the Wednesday low up to this morning’s high, and price action is tip-toeing up to that $1750 psychological level that’s proven so difficult to break. Get your $XAUUSD technical analysis from @JStanleyFX here:https://t.co/MIbZgve7Pi https://t.co/ml6G1N0b7V
  • RT @realDonaldTrump: I will be delivering brief remarks from the Rose Garden at 6:30 P.M. Eastern to update on the Federal Response.
  • US Dollar weakness continues as selling pressure sustained over the last five trading sessions steers the DXY Index 2% lower. Get your $USD currency pairs market update from @RichDvorakFX here:https://t.co/LLlcezQmXK https://t.co/ln5dqmkCPr
The Building Blocks of Trend Development 05.29

The Building Blocks of Trend Development 05.29

2012-05-29 13:58:00
Walker England, Trading Instructor,
Share:

Moving into the fourth final week of May, the Forex market has seen a series of charts consolidate and others create new trends. For the month, our primary focus has been in pairing weak pairs such as the Euro with strong safe haven currencies such as the USD and JPY. Today we will focus on these existing trends and newly created ones, using our building block analysis method. Finding continued strength in the market will allow us to focus on specific pairs for the remainder of the current trading week and the new month ahead.

JPY pairs have been our primary focus for finding strong trends throughout May and for good reason.The EURJPY in particular has declined 277 pips from its Block 1 high at 102.12 created on May 22nd. Pictured below we can see this move lower into Block 2. Currently the May 24th Block 2 low is acting as support on the EURJPY at 99.35. This week however price has temporarily stalled, neither creating a new low or fresh high. This movement can be treated simillarly to trading an inside bar. Traders can await a breakout in the direction of the trend , unders support, prior to placing fresh entries.

EURJPY

The_Building_Blocks_of_Trend_Development_05.29_body_Picture_2.png, The Building Blocks of Trend Development 05.29

EURCAD

The selloff of Euro pairs has also shifted to traditional commodity currencies such as the CAD. The EURCAD is trading as much as 249 pips lower from its Block 1 high established on May 21th . This pair is new on our radar and fresh off a . Over all, momentum is gaining towards the downside with lower highs and lower lows being formed in both Block 1 and Block 2. Currently, price is ensuring that a new down block will be created. Price has created a fresh low on the EURCAD earlier today,on May 29th at 1.2813. As weakness prevails on the EURCAD, traders may look for opportunities to sell into continued weakness.

The_Building_Blocks_of_Trend_Development_05.29_body_Picture_1.png, The Building Blocks of Trend Development 05.29

Using the analysis above, my preference is to continue to find opportunities to sell Euro pairs. This bias holds true on the creation of three down blocks on the EURCAD currency pair. As well, trend traders will look for the EURJPY to break new lows under.

---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.