Thursday, June 16, 2011

#Dow Jones, #GBPUSD, #EUR and #USD

The Dow Jones has broken two historical ascending trend lines. These trend lines were part of a diamond formation observed on the daily charts. This reversal formation has an initial MINIMUM target of 10.900 points. However, it probably will head much lower.

Cable had reached a KEY trend line today. It's the neckline of a HUGE Head & Shoulders formation that can clearly be observed on the H4 and daily charts. Actually I have posted this picture here before as well as the positional trade I took at the peak of the right shoulder.

The Euro has FULLY formed a HUGE (very symmetrical) diamond formation that can be observed on the monthly chart. This will send this pair to much lower levels. I REPEAT once again that below parity is a MUST for EURO in the subsequent years.

USDx is touching and actually testing the descending trend line of a channel observed on the daily/weekly charts. It most likely will breakout upwards sooner than later. As mentioned MANY times here, the buck will surge for the following years. I have published the multiple bull targets here in my blog.

I am still preparing the article that explains all of this and the thought process behind it

Stay tuned.

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