Cleopiptra

Computers can do in a microsecond what would take humans hours to do manually. Beginning with the U.S. equities market more than 15 years ago, algorithmic trading has become common in major financial markets – and has penetrated the foreign-exchange market in a big way in recent years.

I’m not usually a huge cross-rate fan, but the minutes from last night’s RBA release and the BOC rate statement both being digested there’s reason to look a the AUD/CAD. Bottom line: Traders are discounting a rate hike in the loonie while simultaneously “baking-into-the-cake” a rate CUT in the aussie.

Trending patterns like the NZD/USD’s Rising Wedge can be traded one of three ways and it all depends upon the strength of the (up)trend. The daily NZD/USD has rallied through the uptrend line resistance of the pattern triggering a contnuation breakout entry long. Chart pattern alert courtesy of Autochartist. The first way – and this …

This is a question I received from a new trader who has been learning about how I trade. It’s an interesting question – especially during these times where the lack of a bullish or bearish Directional bias on many majors – is increasingly driving me personally to the shorter-term, intaday time frames.

With a bear flag breakdown, the daily USD/JPY has taken the first step back to possibly testing the 80.00 decade level and setting up a continuation of the prior meandering downtrend in the pair.

The fact that two markets in distribution (the daily dollar and EUR/USD) are trading into their potential exhaustion areas makes today’s price action all the more important and brings up this question: How much potential for follow-through is there?

The reversal higher through the Falling Wedge on the daily EUR/CHF has many traders thinking of a more pronounced and potential trend reversal but even though there was a pattern reversal, do not assume a trend reversal says the Autochartist Forecast area.

Sideways patterns with this kind of organized floor and ceiling have been rare…with the width of the range, this is a perfect time to talk about FADES….always AGGRO but sometimes exactly what the price action is telling us to do.

The sideways chop on the U.S. Dollar continues as the index was rejected from the 76.50 level for the third time since late-May. What does this mean for your trading and how can you handle the summer chop?

The daily time frame tells me that while I should respect the strength in the euro, there is a chance that prices will exhaust as the 1.4600 to 1.4650 area comes into play.