Intermarket Analysis and Trading
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Welcome back our daily analysis and charts. These are short term setups and the idea is to trade them on intra day basis.
We have had a great week as Capital3x swells to over 3000 pips in February. The myfxbook link can be seen here: MYFXBOOK Capital3x
Back to todays charts and setups sent about 3 hours back.
Dollar Index on the hourly has support coming in at 81.61 and then 81.33 which I suspect is EURUSD at 1.315 zones. Be long the dollar with stops under those levels. Also remember Bernanke is to speak today and most analysts believe he may try to tone down the dollar. I believe the opposite may happen but that is pure chart logic.
DX index on the daily is far above the daily BB. I have rarely seen this kind of a formation on the dollar where the index for 4 consecutive bars is staying above the daily bollinger bands. The formation is uber bullish and the first target could be 84 on a medium term basis. Refer the point and figure charts for targets. But keep this chart in mind as you refer to trading other pairs.
Italian bonds opened with a massive opening gap at 110.4 and fell to 108 in the first 15 minutes. We are yet to see a proportional move on EURUSD which I suspect is waiting to happen once markets realise that BTP is down and staying down. Gaps close and if by tmrw EU session BTO gap does not close, then this gap could be medium term capping line at 110.4 and propel the bond to 105.65. The daily technical stochastics and vortex are bearish.
The German bunds have sprung over 143.5 and todays candles is above yesterday close which is signifying the bullish pressure as euros flow in safety. The next stop for bunds is at 145.76 and will also propel risk markets like ES futures to 1460
This is favorite setup. AUDUSD is about to break the 3 M lows. The lower BB is at 1.0212. If you see a close below we have a 100-200 pip drop coming which will also meet the P&f target at 99. Refer weekend charts on AUDUSD. The technicals are weak and stochastics are constantly being beaten under 20. Bears are in control. In case of bounce watch the 1.0325 level which is the 200 DMA and 20 dma both at the same level. Obvious offers in place.
On the hourly charts, AUDUSD is now bending the 100 SMA downand the 20 sma is also bending down at 1.0270. Any bounce on hourly should not exceed 1.0284. But above 1.0284 (netline buy) will set it on course for a move to 1.0305 which is the 200 sma.
We have had a great week as Capital3x swells to over 3000 pips in February. The myfxbook link can be seen here: MYFXBOOK Capital3x
Back to todays charts and setups sent about 3 hours back.
Dollar Index on the hourly has support coming in at 81.61 and then 81.33 which I suspect is EURUSD at 1.315 zones. Be long the dollar with stops under those levels. Also remember Bernanke is to speak today and most analysts believe he may try to tone down the dollar. I believe the opposite may happen but that is pure chart logic.
DX index on the daily is far above the daily BB. I have rarely seen this kind of a formation on the dollar where the index for 4 consecutive bars is staying above the daily bollinger bands. The formation is uber bullish and the first target could be 84 on a medium term basis. Refer the point and figure charts for targets. But keep this chart in mind as you refer to trading other pairs.
Italian bonds opened with a massive opening gap at 110.4 and fell to 108 in the first 15 minutes. We are yet to see a proportional move on EURUSD which I suspect is waiting to happen once markets realise that BTP is down and staying down. Gaps close and if by tmrw EU session BTO gap does not close, then this gap could be medium term capping line at 110.4 and propel the bond to 105.65. The daily technical stochastics and vortex are bearish.
The German bunds have sprung over 143.5 and todays candles is above yesterday close which is signifying the bullish pressure as euros flow in safety. The next stop for bunds is at 145.76 and will also propel risk markets like ES futures to 1460
This is favorite setup. AUDUSD is about to break the 3 M lows. The lower BB is at 1.0212. If you see a close below we have a 100-200 pip drop coming which will also meet the P&f target at 99. Refer weekend charts on AUDUSD. The technicals are weak and stochastics are constantly being beaten under 20. Bears are in control. In case of bounce watch the 1.0325 level which is the 200 DMA and 20 dma both at the same level. Obvious offers in place.
On the hourly charts, AUDUSD is now bending the 100 SMA downand the 20 sma is also bending down at 1.0270. Any bounce on hourly should not exceed 1.0284. But above 1.0284 (netline buy) will set it on course for a move to 1.0305 which is the 200 sma.
