Hi, I am so sorry for the delay n posting my candlestick analysis, but
I am very busy this week, and if God's will I will restart posting my
analysis after a week.
May Jesus Christ bless you all.
| EUR/USD attempted to rally again late yesterday, possibly on weakness in US equity markets. But overnight, the stronger USD and saw 1.2195 area support fall, and now we focus on 1.2130 as the last support holding the pair back from a retest of the 1.2000 area. 1.2195 is now resistance. Further out, we may look for EUR to find strong support. |
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| GBP/USD looks like it is finally committing lower, with a fall through 1.7900 further confirming that we should focus on 1.7800 now and possibly even 1.7500 eventually. 1.7970 is first resistance, followed by the 1.8020 area. |
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| USD/JPY rallied strongly overnight, possibly for technical reasons as the 110.15 minor resistance was taken out. Still, 110.80 is an awfully big barrier. If the pair can pull through that level, then we're looking at the range between 111.50 and 113 again. To the downside, 110.00 looks like a swing level. |
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| EUR/USD found resistance below the 1.2260 ideal resistance area, though a positive boost from Germany and EuroZone sentiment surveys still presents a risk that the pair could revisit the 1.2300 area before heading lower again. Support appears robust around the 1.2200 area for now. |
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| GBP/USD can't make up its mind which way it wants to go, but the preference is for it to eventually head lower, especially if it stays below yesterday's high and the resistance at 1.8047. A move through 1.7900 encourages the view toward 1.7800 and possibly even 1.7500 eventually. |
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| USD/JPY still looks heavy, and a fall through 109.50 again could encourage a test of the crucial 108.90 area, which guards the gates to much lower levels still. The upside swing level comes in around 110.00 - this was briefly breached this morning, but must hold if it is to help swing the pair higher. 110.80 is the key resistance higher still. |
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| EUR/USD found resistance below the 1.2260 ideal resistance area, though a positive boost from Germany and EuroZone sentiment surveys still presents a risk that the pair could revisit the 1.2300 area before heading lower again. Support appears robust around the 1.2200 area for now. |
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| GBP/USD can't make up its mind which way it wants to go, but the preference is for it to eventually head lower, especially if it stays below yesterday's high and the resistance at 1.8047. A move through 1.7900 encourages the view toward 1.7800 and possibly even 1.7500 eventually. |
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| USD/JPY still looks heavy, and a fall through 109.50 again could encourage a test of the crucial 108.90 area, which guards the gates to much lower levels still. The upside swing level comes in around 110.00 - this was briefly breached this morning, but must hold if it is to help swing the pair higher. 110.80 is the key resistance higher still. |
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The tongue that brings healing is a tree of life, but a deceitful tongue crushes the spirit.
Proverbs 15:4 (NIV)
The hammer is a bullish reversal pattern that forms after a decline. In addition to a potential trend reversal, hammers can mark bottoms or support levels. After a decline, hammers signal a bullish revival. The low of the long lower shadow implies that sellers drove prices lower during the session. However, the strong finish indicates that buyers regained their footing to end the session on a strong note. While this may seem enough to act on, hammers require further bullish confirmation. The low of the hammer shows that plenty of sellers remain. Further buying pressure, and preferably on expanding volume, is needed before acting. Such confirmation could come from a gap up or long white candlestick. Hammers are similar to selling climaxes and heavy volume can serve to reinforce the validity of the reversal.
The hanging man is a bearish reversal pattern that can also mark a top or resistance level. Forming after an advance, a hanging man signals that selling pressure is starting to increase. The low of the long lower shadow confirms that sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of selling pressure raises the yellow flag. As with the hammer, a hanging man requires bearish confirmation before action. Such confirmation can come as a gap down or long black candlestick on heavy volume.
EUR/USD weekly chart showing tweezer top, indicating a possible bearish continuation pattern, but beware of possible bullish Monday as a normal start of the candle.
