The EUR/USD pair has been in a tightening range after a very strong move a couple weeks ago.  This has formed a triangle formation and points to breakout either higher or lower of roughly 400 pips from the breakout point.  With the overall trend still up, the bias is for a break to the upside, yet the lower support line of the triangle will need to hold.  Otherwise a move down is expected.  On the downside (and upside) there are major support levels (resistance levels) which need to watched after the breakout occurs – these include recent swing low (and high) areas.

Source: Forexyard - EUR/USD - 4 Hour

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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I am more of a short term trader, but longer time frames can still greatly help even if we only day or swing trade.  The following video talks about weekly charts.  These are important for many traders and is worth a watch.  I will keep this brief and try to post a trade idea or two later today.

Why weekly charts are so important in the Forex market:
http://www.ino.com/info/414/CD3784/&dp=0&l=0&campaignid=3

Enjoy,

Cory Mitchell, CMT
Chief Market Strategist

P.S.  Want more trading education?  Get 4 free trading seminars here:

http://www.ino.com/info/36/CD3784/&dp=0&l=0&campaignid=9

Be Sure to check them out as well!

The GBP/USD currency pair has formed a downward sloping flag formation.  This sets up a potential trade, and due to the action leading into the current formation, we have multiple profit targets.

A break above the upper channel line (see chart) indicates a swing higher with a target of 1.6500.  A move aggressive target is 1.6550 which is just above a former swing high from early July.

A break lower is less likely, but could happen.  The target would be 50 pips below the breakout point  of the lower channel line (see chart).  A more aggressive target is 100 pips.

The channel lines change over time because they are sloping, so it is prudent to reconstruct these lines on your own chart.

Want to learn more about chart patterns or other forex and stock market trading methods?  Check out the Trading Courses page.

Source: Forexyard, GBP/USD 1 Hour Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

If you are you interested in getting into forex trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

On the longer term charts this pair has really leveled off and is in a definite range.  Within the range there are potential trading opportunities when we shrink the time frame and look for set ups on these smaller time frames.  In this post we will look at the 1 hour chart.

Currently there is a descending wedge which offers a couple of trading options.  The pair recently tried to test the upper trend line, but failed.  This sets up a potential short with a target being the lower trend line.  At this moment the reward for risk is not that attract for this trade, but if the upper band is tested again and does not definitively breakout, then the the reward to risk will improve greatly.

If a breakout of the wedge where to occur, the profit target would be about 85-90 pips from the breakout point.  With trend lines where they are at currently, a breakout would test either the July 6 High, of the July 1 Low.  Although as time progresses it is more accurate to establish the profit targets based off the 85 pip target from the breakout price, instead of the using those swing high and lows as targets.

Please read the latest How to Use the Trade Ideas blog if you understand the analysis. If you still have questions after, feel free to comment

Source: Forexyard, USD/CHF 1 Hour Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

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So I was about to do an analysis of the USD/JPY and then I was sent this video which is basically exactly what I was going to say.  If you follow any of my analysis, I use a a lot of chart patterns.  You can learn what patterns I like to trade, and how to trade them in my book, or you can  watch these guys videos.  Often they provide a very similar outlook to my own views, and I feel fully confident in providing their analysis,videos and potential service to you.  They provide a fantastic service if you are interested, or you can just enjoy the videos with no strings attached.

This video looks at the longer term view of the USD/JPY forex currency pair, and where it is likely to go.  The video is great in that it shows how to technically analyze forex charts, and then also gives a bit of an intro to the methods that they use over at Ino.  Great stuff!  I think these video are great, they are free, but if you are interested in learning more you can sign up for a free trial to one of the most premier services (you get so many things with a subscription!) in the trading industry.  Or…just simply enjoy this great totally free video analysis of the USD/JPY pair.

http://www.ino.com/info/400/CD3784/&dp=0&l=0&campaignid=3

All the Best in your trading,

Cory Mitchell, CMT

The eur/usd currency pair scorched higher today, moving almost double its 12 day average (daily) range.

Breaking above daily support at 1.4000 it appears a new swing up is developing.  The next resistance level is at 1.4170 with a push beyond likely to test the recent highs at 1.4330.  Moves beyond indicates profit targets of 1.4590 and a further target of 1.4800 (rounded down).

The pair is a medium term uptrend which has accelerated higher.  This is common for tradables in this stage of a market trend.

Want to learn more about chart patterns or other forex and stock market trading methods?  Check out my Trading Courses page.

Source: Forexyard, EUR/USD Daily Chart

To Your Trading Success,

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

———

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

In my last post on the longer term view of this pair, I mentioned that how the pair reacted at 1.0800 would be critical in its longer term movements (this analysis was contributed to ForexPros.com and can be seen under my submitted analysis – My analysis of the eur/usd and usd/jpy can be viewed daily, all day, on the homepage of the site as I provide an idea of what to expect through the upcoming trading day).

We know know that it reacted strongly with the USD gaining over 700 pips against the CAD since that level was touched.

Several factors point that we are in the start of a new uptrend.  RSI has moved up above 70 which it did not do on the downswing.  Thus we have a breakout on the RSI.  The (small) correction also held above 40, which is a strong sign.

With the rate surging, at the moment, higher we will likely test the trend resistance line.  This trend line is just below the former swing high at 1.1750, the former swing high is at 1.1800.  Obviously a break of that level will be required to really confirmed a reversal and a new uptrend.

The trend line moved down over time so the break of that trend line can give us early indication of a  move ever higher.

The break above 1.1800 indicates a move to 1.2800 over the long term.  This could be adjusted as low as 1.2400 depending on the when the breakout occurs.  The longer it takes to breakout, and thus the lower the trendline price is when the breakout occurs, the lower the profit target will be.

Failure to move above 1.1750 (this will decrease over time as the upper trend line falls) and ultimately 1.1800 would mean a testing of the small correction lows at 1.1200 and a more significant correction.  A break below 1.1200 would indicate further weakness and a likely resumption of the downtrend.  That downtrend would be confirmed with a move below 1.8000.  Intermediate support between 1.1200 and 1.8000 is 1.0950.  If that level can hold, it will likely be choppy trading for a while as the market chooses a direction.

BOTTOM LINE:  Right now it appears we are heading even higher, but we are still in a downward sloping trend channel.  Corrections should hold above 1.1200 and and resistance is expected between 1.1700-1.1800.

Keep in mind, oil is breaking hard, and you see that analysis at http://www.darkpooltraders.com/vb/energy-futures/106-oil-about-break.html.  Get the analysis and updates to that trade there.

Falling oil prices hurt the CAD, which will mean the USD is likely to rise in relation to the CAD.  It is not a perfect indicator, but as a general guideline it works well.  This means the USD/CAD currency pair is likely to push higher as oil prices fall.  While this is not an oil analysis, a move back to former lows is not expected in oil, so the oil fall is likely to be  just  a natural correction.  Thus I believe oil will fall, but for a short time.  Large moves in oil can affect the pair dramatically…as they did today (June 22).  Thus, keep an eye on oil when following this pair.

The average daily range of the pair is currently hovering around 150 pips per 24 hour period starting at 00:00 GMT.  Keep this in mind when making projections for day trading and when using profit targets with time constraints.

Please add comments or if you questions please ask them view the comments link at the bottom of the post.

Want to learn more about chart patterns or other forex and stock market trading methods?  Check out my Trading Courses page.

Source: Forexyard, USD/CAD Daily Chart

To Your Trading Success,

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

———

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

The pair is in a sharp downward sloping wedge.

The interesting thing is this wedge’s apex is right at the major support level of 95.60.  Thus, this wedge can give us an early indication of which way the market is likely to act off this support level.

From the chart you can see the trendlines of this wedge.  A break above indicates a move of 75 pips from the breakout price, either up or down.

As of when I post this the upside trendline is at 96.00 and the downside breakout price is 95.80.  The risk is small for the potential reward.

Want to learn more about chart patterns or other trading methods?  Check out my Trading Courses page.

Source: Forexyard, USD/JPY 30 Min Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

———-

Want to learn more about chart patterns or other trading methods?  Check out my Trading Courses page.

———

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

The pair just broke minor and a major support

Source: Forexyard EUR/USD 15 Min Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

———-

Want to learn more about chart patterns or other trading methods?  Check out my Trading Courses page.

———

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.

June 18, 5:44 AM GMT

Please read the latest How to Use the Trade Ideas blog if you have questions. If you still have questions after, feel free to comment

With a short term uptrend in place we have a favorable set up for a buy.  A push above 1.3980 would indicate a profit target of 1.4040.

Another trade is buying near the bottom of the current range and using the same profit target.

The short term uptrend remains in tact as long as 1.3860 is not broken.  This trend will rise over time though.

The pair currently trades at 1.3937.

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

———-

Want to learn more about chart patterns or other trading methods?  Check out my Trading Courses page.

———

Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.

I am here to personally help you out if you open an account, and need help with strategies or figuring out the trading platform.