Wednesday, February 12, 2014

Trading Week 10/02/14 (4)

Wed 12th Feb (6 am)
Indices: The USDX has bounced a bit after the Janet Yellen speech which seems rather odd given that she stated the Fed would remain accommodating and supply stimulus as needed. There might also be a bullish breakout from the descending wedge  here:

The EURX is trading lower but hasn't strayed too far:

S&P500: stocks loved the news and this would have provided a great SPY trade off 30 min charts for those of you who can trade the US session:  

The daily S&P500 chart shows how this bullish action may undermine the potential H&S set up: 

Gold: this was the surprise though as the stronger USD hasn't hurt Gold at all. In fact it is off and running in this love fest too. The daily chart's bullish 'inverse H&S' pattern seems to be well underway now: 

The weekly chart shows how this bullish action follows on from the technical pattern that I had noted last weekend. That is, of the bullish reversal 'railway track' pattern. 

It also bears noting that this was not the only bullish pattern noted recently. There was a similar bullish reversal pattern of 'railway' tracks noted at the end of last month too. Check out how the new monthly candle has traded bullish since then:

Open TS signals: all but one of the TS signals are trading in the black:

E/J: has given 140 pips and still sitting at a key S/R level:

A/U: 40:

A/J: 70:

Cable: gave up to 90:

Kiwi: 50:

EUR/AUD: 50 but at support:

GBP/AUD: flat

E/U: wasn't too impressed with the USD strength.

U/J: is a bit higher and currently negotiating the key S/R level of the monthly pivot. There has not been a 4 hr candle close above this level just yet though:

AUD/NZD: I'm watching out for any continuation of this possible inverse H&S pattern:

There is a fair bit of 'red flag' news today. Chinese Trade Balance data during the Asian session and then BoE and ECB speeches to come in the European session. The Chinese data could especially make or break the AUD based trades.

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