Inter-market Technical Analysis using algorithmic pattern detection
MONDAY APRIL 26, 2010 07:24 ET
In trading this morning in Europe, $EURGBP seemed poised to drop below recent support which would activate my target from last week of approximately 0.85. After it was announced that Angela Merkel would be making a statement about Greece at 13:00 today (European time) the euro found a bid and the euro/sterling cross rate moved back up.
The area targeted is where I would be looking to re-establish a short position on EUR/GBP.
USD/JPY almost closed at the 94 level last Friday and has seen some spikes above this level during trading in Europe this morning.
I maintain my intermediate term targets of 97 followed by 100.
The chart for gold remains constructive but until there is close above $1170, whereupon I would expect a quick move upwards, I would look to add to long positions on each pullback to the dotted line on the chart.
Sterling/dollar is within the cloud formation on the daily chart which will keep me on the sidelines on this cross rate - but as discussed on Friday the real action is on the cross rate between sterling and the euro- although playing both sides against the dollar is a useful tactical scalping strategy.
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TRADE OPPORTUNITIES/SETUPS FOR MONDAY APRIL 26, 2010
The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions.
None of these setups should be seen as specifically opportune for the current trading session.
For a more comprehensive listing of price formations detected by our pattern recognition algorithms please visit TradeWithForm
EWA iShares MSCI Australia Index
The sector fund for Australian equities, EWA, is on my list this week as a short candidate.
XOP SPDR Oil and Gas Exploration
XOP, the exchange traded fund for the oil and gas exploration sector, reveals one of my favorite breakout patterns and I would be looking to scale out of the position starting at $49 and then beyond.