The USD/CAD has been shaping up in my preferred chart pattern of a descending wedge for some time now. The upper trend line of this wedge is currently being tested and, with recent US$ strength, this might be worth watching for any momentum-based breakout and mean-reversion move. This week brings NFP so watch to see […]

Last week: I mentioned last week that technical signals were pointing to caution being needed and that proved to be spot on! The Bond rout, and commensurate rise with US Treasury yields, dominated the markets last week and triggered a risk-off shift with all four of the US stock index majors closing lower, so too […]

The focus today has been all about the Bond rout and the yin and yang consequential spike with yields and this is being reported as the reason for the move out of stocks. I am a chartist and not an economist but I understand the relationship between Bonds and yields. However, I am reading, from […]

The US$ is looking a bit weak ahead of Tuesday’s Fed Chair Powell testimony so watch this event to see if it shifts sentiment at all. Regular readers will recall how I warn that trading is better off shorter-term charts when the FX Indices are stuck in the 4hr and or daily Cloud and this […]

Last week: There were some great trend line breakouts opportunities last week and one of the best was the move on the GBP/JPY, off last week’s profiled 145.50 level, that gave up to 250 pips. I hope the FX traders caught a chunk of this! Some interesting divergence has now emerged and I consider that […]