Stock Graduate Call notes 1/28/14: Review Major Pairs

Reviewing the daily charts of the major pairs today shows some potential trades and some wait and see scenarios.

NZDUSD is in a trading range.  It recently came off of support and the lower Bollinger band for a potential move up to resistance which also happens to be the upper Bollinger band.

USDJPY is no longer upward trending and looks to be starting a downward trend.  It has gone up the last couple of days but not enough to recover the down day on Friday.  It looks to be setting up for a sell trade.

GBPUSD is longer term uptrend if you look at the 50 day moving average.  It established a new recent high last week.  After a doji candle today, the lows of the day haven’t been reached.  Look for opportunities to enter a trend trade during a bullish day.

EURUSD looks to be forming an ascending triangle with resistance around 1.3820.  If it breaks through that resistance, there could be about a 500 pip move based on the ascending triangle pattern.  While waiting for that pattern to complete, there is still opportunity for a bullish trade up to the resistance.  Look for a bounce off the ascending line of the triangle for an entry.

USDCHF is non-trending but recently bounced off the lower Bollinger band and coming out of oversold area for Stochastic & CCI.

The AUDUSD is in a downward trend though has bounced up this week towards the 18 day moving average.  This is setting up for a sell trade if you play the trend.  Look for a pull-back off the 18 day moving average.

USDCAD has essentially been in an upward trend since the beginning of 2013.  It has leveled out now and then for a few weeks before resuming the trend.  The most recent leveling ended the first of the year and it resumed the strong upward trend.  Look for pull-backs as opportunities to buy.

Beware the US Fed’s policy statement and press conference tomorrow which could cause some short term volatility.

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