Monday, May 11, 2009

May 8, 2009 Forex Market Recap

Friday was a beautiful uptrending day for both euro and cable, another good example to apply forex strategies for the advance phase.

After the breakout of the ascending triangle, euro formed a shooting star followed by a hammer on hourly chart, a typical price action to shake out weak hands. Euro offered two great opportunities to long at the breakout of resistance level. The second had a higher probability since the uptrend is confirmed.


Cable formed a top range (1.5160-1.4980) on hourly chart. The strategies to trade a range-bound market is quite different from a trending market. Confirmation is needed for a legit breakout or breakdown. For a true breakout, the price should close above the resistance after the breakout, while a true breakdown, the price should remain below the support after the breakdown.

British pound
British pound

On daily point and figure charts, euro made a double top breakout at 1.35, which cable made a double top breakout at 1.50. Both euro and cable made a new high in twenties trading days (H20).

Yen met major resistance at 99.50 on both point and figure charts and candlesticks.

point and figure charts
Japanese yen


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