GBPNZD we are in a delicate area for this pairWe are in a delicate area for this pair, from here you can start a big raise - related to the NZDUSD in which we expect further falls
Startegy
DIS relative strength during market correctionPrice of Disney's stocks holds nicely during this corrective phase showing relative strength. S&P was up 1% on Friday and gain 6 handles on premarket showing some follow through. This stock could be a good candidate when market buying will resume. Entry ans Stop on chart. It is difficul to say what could be potential target as stock hovering near historical highs, but minimum requirements are 1,5-2 more that risk (makes our target $91.60 - $92.00)
US Dollar index bullish reversal from support zoneIn general, week from 30th of June to 4th of July was positive for global markets. Indexes gained 1-2% mainly on better then expected job numbers from US. Dow Jones above 17000 with technology index Nasdaq at 14 years highs , after the government reported the economy created 288,000 jobs in June and the unemployment rate fell to 1,6%. A stock or index hitting new high has no overhead supply to contend with. When a stock or index reaches a new high supported by big volume clues, it has been propelled upward by institutions taking positions because they believe that fundamentals are solid and the prospects for the future are even better.
The European union kept monetary policy unchanged as expected following last month's measures to stimulate the economy. CAC 40 bounced off 4407 where 21 EMA is situated. It could be our new point of reference. Week before sellers managed to broke down accelerated trend, if they still want to keep control on price they should defend break down point 4500. After big run in 2013-14 years it may take a pause and pull back a bit deeper to 50 EMA and macro trend line close to 4300.
The US dollar gained against major currencies. The job report is bullish for the U.S. dollar, and a headwind for gold. Dollar Index bounced off support zone that is in tact since April 2014. Now we have green, reversal candle that can lead to something bigger if next week buyers will lift prices above previous high of that candle. US Dollar still under pressure below key moving averages. I will use my levels of support/resistance and pivot points to measure price action.
SPY down trend dayDifferent entries and playbook trades that make sence for me with comments on the chart.
CAT classical "h-pattern"This construction mashinery company entered into strong uptrend since December 2013 after it broke up major consoldation resistance in the mid $80ish area.
Now stock with the whole sector ($MTW, $TEX, $DD, $JOY) showing relative weaknes vs broad market.
I use my 8 and 21 EMA to measure short term sentiment ant to make adjustments if i am positioned. It dropped its 8/21 EMA on 20th of May first time since mid March. And settling for a nice h-set-up which is classical pattern in technical analysis.
Break down below $100.72 may attract more active, swing traders and I expect to see some follow through.
Stop above previous swing high at $104.50 makes this trade attractive from R/R point of view.
Target is $95 previous base support level, 200 EMA.
All traders should manage this trade depend on their time-frame and strategy.
AUD/USD bounce off of major supportCurreny pair bounced off of major support level that is in tact since beginnig of April. Also, it was bottom of bull flag.
As it broke up intermidiate resistance level it caught some follow through.
I am bullish and will be watching for buying opportunities on 50% pullback close to 8/21 EMA or if it will go through 0.93118 it may attract more active swing traders.
My road map (target) is right to 0.94600.
AUDUSD range with upside biasDaily chart: head and shoulders resolved to upside after it broke neckline at 0.91000. We had follow through to 0.94610 then entered into complex pullback (bull flag) which was broken up with potent, igniting candle and now it is building nice upper level base above all key moving averages.
Shorter-term tech analysis:
Pair entered into rnage bound market sith support zone from 0.93322 to 0.93465 and resistance zone 0.93933-0.94081
Trading plan:
entry close to support zone then on break up of trend line inside of that range and then on break up of resistance.
VRTX setting for move lowerAfter stock bounced from resistance that is intact since May 2013 and broke down upper level support @ $76 with strong follow through to November lows.
Now, it is flagging near lows in front of support. With weak Biotechnology sector and market sitting on resistance it could be start of another down leg.
Enter short @ $63.80
Stop above 21 MA @ $66.83
Target $58.07-$59.76 and then I expect potential break down and continuation move to low $50ish area.
SPY inverse Head and Shoulders, higher lowsUS markets covered morning losses and closed well on highs. Tech sector and small cap companies continue to diverge from S&P500 and major cap Dow Jones. It makes some traders nervous, and some say it's time for caution but we will measure price action with levels and wil continue to follow our process and rules.
Market has switching gears every day, so we should adapt quickly. Don't trade opinion, trade price action.
SPY built series of hiher lows, one at $181.51, then another one at $184.96 and yeasterday's low at $186.01. You have this upper range that looks like Inverse Head and Shoulders pattern.
Now in order to break out, the SPY need to get above and stay above $188.50-$189
