Thursday, May 1, 2014

Trading Week: E/U + Ichimoku Alignment.

Thurs 1st May (4.15 pm)
Indices: The USDX and EURX Index charts are very close to being aligned again for 'risk on' across both the 4hr and daily time frames. Watch for any developing trend momentum from any new alignment.

USDX: The index is below the Cloud on both the 4 hr and daily time frame:

USDX 4hr:

 USDX daily:

EURX: Price is above the Cloud on the 4hr chart and trying to free the Cloud on the daily chart. Success here would complete the bullish 'risk on' alignment:

EURX 4hr: 

EURX daily: 

The conventional charts show the USDX heading towards the lower range of the recent trading channel and the EURX yet to affect a triangle breakout:


Forex: there is the start of a shift to 'risk on' evident but many European markets are closed so caution is needed.

E/U: with this shift to 'risk on' on the EURX and USDX it is no surprise then to see the E/U moving higher. Price is getting up close to the monthly triangle trend line and may attempt for a breakout here if this sentiment continues. This major S/R region should trigger some reaction from this pair, if nothing else. I don't have any TS signal but a technical trend line break may offer a trade entry opportunity if bullish sentiment continues:

E/U 4 hr:

E/U monthly: I have been writing about a potential major triangle breakout of the E/U from its monthly chart for some weeks now. The trend line bears watching given this latest bullish movement. This trend line corresponds with the upper region of the monthly Ichimoku Cloud (see below):

E/U Ichimoku Charts: The E/U is trading above the Cloud on the 4 hr, daily and weekly charts which is bullish. A break of the monthly trend line would correspond, fairly closely, to a break up and out of the monthly Ichimoku Cloud. This would be a significant bullish development:

E/U 4 hr:

E/U daily:
E/U weekly:
E/U monthly:

Kiwi: this TS signal wasn't valid due to the Bollinger band but it continues in the right direction at least:

Aussie: this is starting to drift towards the upper boundary of the trading channel. A break of this channel may offer a trade entry opportunity:

Cable: continuing higher from the 1.68 breakout:

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