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Dynamic Trader Blog - Forex Chart Pattern Signals

Monday, December 08, 2008

Pound Aussie DB?

G'Day Dynamic Traders,

Lots of movement in the markets today, hope you managed to sweep some sweet gains.

I have posted the GBPAUD chart today which is a personal favourite of a few people I know.
The monthly timeframe shows no real trend, price is going mainly sideways, and the weekly shows a downtrend since October time.

On the daily chart the price appears to be displaying a descending triangle forming into a squeeze. The value index has been providing support in recent times. MACD has been following price fairly diligently although the previous low on the MACD is far lower than the current low in comparison to the price.

The four hour chart shows more clearly what appears to be a DB. Though the current trend may be down, there is strong support around the 2.22 area, with the squeeze forming a bounce up may be witnessed prior to further potential weakness.

A word of caution, this pair does range more than the more common ones discussed here, therefore good risk and money management are imperitive.

Happy Trading
Bijal Shah

“Obstacles are those frightful things you see when you take your eyes off your goal.”