Last week: I had warned last week to watch the descending wedges setting up across many Forex pairs for potential mean-reversion activity. This proved to be sage advice as many of these wedges triggered and delivered significant gains: the AUD/JPY for 160 pips, the GBP/USD for 190 pips, the Kiwi for 110 pips and the […]
US stocks closed higher on optimism over the Biden Infrastructure plan with the S&P500 and NASDAQ closing at new all time Highs. The DXY is little changed and, thus, so is Gold and many of the Forex pairs I monitor.
The US$ stalled at resistance to start the week but traders should watch to see how the DXY reacts to today’s FED Chair Powell testimony. My weekend update contained many bullish-reversal descending wedges on Forex pairs and all of these delivered mean-reversion moves to some extent. The GBP/USD ended up being one of the cleanest […]
Last week: The complacency that had plagued the markets for the last few weeks came to an abrupt end following the FOMC update. We’d had weeks of very few trend line breakout moves but there was an abundance in this last week. The Federal Reserve indicated that US interest rates might rise sooner than initially forecast […]
US$ strength has continued and this has been accompanied by Yen strength which helped to trigger a great trend line breakout on the GBP/JPY. I expect there will be some significant revision to the long-term chart patterns for this weekend’s update!