• Online Forex trading Community


Nicole Elliott from Mizuho Corporate Bank at 01/18/10


Comment: A powerful chart combination with last week’s ‘bearish engulfing’ candle following on from the previous week’s ‘hanging man’. Once again it underlines the formidable resistance that lies between 90.00 and 91.55, an area that limited the top throughout the whole of 2009. The weekly Ichimoku ‘cloud’ has at last stared to thin, so perhaps we are building for a sustained break lower. Moving averages and Ichimoku ‘cloud’ indicate we are in bear mode and it is just a matter of time before we break pivotal support around 84.00. Then expect a drop to 80.00, maybe 77.00.

Strategy: Attempt shorts at 88.50, adding to 90.00; stop above 91.15. Add to shorts on a weekly close below 87.50 for 84.50 short term and probably 79.00 further out.

Main Menu