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A longer-term chart was posted earlier this month with a reasonably bearish tone so with that in mind there is an appealing setup for a short trade here. The current March leg up has exceeded RSI dynamic oversold level above 60 (dynamic because oversold/overbought can shift away from rigid 70/30 levels by focusing on the longer-term trend price is currently in)...

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Bund futures bounced in September and created some nice symmetry when the first wave from September to late November was thrown back exactly 61.8% before rising exactly 100% (minus 1 tick) to the initial early February highs of 144.57. A fade then only managed to reach back down to existing Fib support and consolidation did not last as price broke free again...

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EUR/JPY is at the mercy of both $ and € weakness at the moment therefore if it breaks down we could see the 138.5-138.8 area tested. In the meantime, we are in no man's land as far as entry or reentry is concerned. Bulls may want to wait for the aforementioned levels to consider longs while bears may have a look at any pullback towards 140.3

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A couple weeks ago we highlighted an area of support below 100.6 which could act as a magnet for USD/JPY so long as it remained under pressure below 102.85. After failing to overcome that resistance last week, USD/JPY now looks determined to test early February lows below 101. We believe that these lows will not hold but that the support area just below remains a...

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One to watch this week (and perhaps next) for H&S lovers is GBP/AUD. The tentative pattern is actually quite compelling for many reasons. First of all GBP/AUD is on a multi-months bullish run which stalled just shy of a major monthly Fib retracement near 1.92. Also, the pattern itself so far abides by market geometry quite accurately. For instance, left and...

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Smooth uptrend started in June 2012 hit a wall last January below 175 and a (very) long term trendline on the monthly chart suggests we may have a temporary top in place. However, the same monthly chart provides an alternative (and preferred) resistance zone at 180 and just below which has already been quite tested between 1997 and 2003 and now also accounts for...

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January offered a picture perfect example of how to use Cardwell's RSI reversals to determine price targets. A negative reversal provided us with a 140.29 target which was only a couple pips below January 20th low of 140.32, and was triggered nonetheless a week later. Now, the reverse situation may be occuring with positive reversal stemming out of today's fall...

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Recent dip towards 1.6650 opens up a quick long here at 1.6665 for a retest of 1.68. Previous range extension following upward break of wedge in November (A.) led to the measured move target of 1.665 to be reached in late January (B.). Then a retest of previous resistance at 1.6250 in early February (C.) initiated another leg higher to current yearly high above...

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Several clues point to a move sub-1.46 for EUR/CAD should the mid-line of the current pitchfork-like channel be broken. This scenario is preferred so long as 1.5165 holds and an updated chart with risk and reward targets will be posted if appropriate.

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Looking at the current throwback within the larger uptrend, Yen may strengthen further against the US Dollar before Yen shorts start to take profits and another wave of Dollar bulls steps in. This scenario remains valid until either mid-March or a clean break of 103.50, whichever comes first. UPDATE: We do not agree with many other analysts who suggest that the...