U.S. Dollar Scorecard – Best and Worst Performers

By BKAssettManagement on May 18, 2013 06:31:55 GMT

It has been a great week to be long U.S. dollars. The greenback traded higher against all of the major currencies as investors around the world grew more attracted by the performance of U.S. equities and the rise in Treasury yields. The S&P 500 climbed to fresh record highs today, extending a move that has [...]

Trade of the Day for May 19th, 2013 – Short EUR/USD

By Tim Kelly on May 19, 2013 04:34:12 GMT

Euro Weekly Chart Shows Nearly Perfect Head & Shoulders Formation Our Prosticks model has been short EUR/USD from 1.3160 (May 9, 2013).  A nearly perfect head & shoulders pattern (bearish for the pair) is being carved out on the weekly charts.  A break below 1.2750 (breach below extreme tail of May 5; see daily chart) [...]

Chart of the Day for May 17th, 2013 – USD/NZD

By DailyFX on May 17, 2013 01:50:33 GMT

NZD/USD traded to its highest level in almost a year and a half last Friday before reversing sharply to end lower on the day. This left a so called “key day reversal” on the daily charts that warns a broader reversal could be in the works. Normally we don’t give too much credence to such high profile action, but the pattern has developed at a potentially important juncture for the pair from both a price and timing perspective. On the price side of things, Friday’s high in the Kiwi came at a convergence of a pitchfork line connecting the 2011 and 2012 lows and the 78.6% retracement of the 2011 range. Both are technically significant and denote levels where supply is likely to increase.

The bulk of technical analysis is focused on price or the Y-axis of a chart. Very little is attention is put on the X-axis of time – yet it takes up half the space. In our analysis we like to incorporate various techniques that address this oversight. These techniques are not the “Holy Grail”, but they do help identify points on a chart where a reversal (or acceleration) is more likely to occur. We seem to be at one of those junctures now in the Kiwi as a clear geometric relationship exists with the low recorded in early June of last year. A reversal is more likely to occur during this time in our opinion and the rare combination of negative price action at a significant resistance zone during a key time period increases our conviction.