here is a song for ur weekend 
Inserted Video
with the chart
i don't understand with your chart...why are you take sell with the EU condition like that...can you explain to me..
- #14,832
- Dec 6, 2010 8:08am Dec 6, 2010 8:08am
- | Commercial User | Joined Sep 2008 | 2,498 Posts
the usual silly monday
this is how i do enjoy the silly mondays
cheers
this is how i do enjoy the silly mondays
Inserted Video
cheers
- #14,835
- Dec 7, 2010 2:25am Dec 7, 2010 2:25am
Just as ichimoku is a great way of picking commencement and continuations of trending markets, it can also be a nice reminder of when something is getting over bought or over sold once every single timeframe is above/below the kumo and by a decent margin.
AUDUSD currently fits this mold, it stands out squarely on "the sheet" as the only currency with a bid in it and would most likely be taking its strength from the recent pop in the gold price.
To perma-bulls in the Aussie carry trade it may come as a surprise that the AUD is not actually the same as gold however once China hike their interest rates this weekend we should expect to see a different scenario unfold and this to be realised quite quickly. Downside risks in the Aussie remain in the 0.9550 region and then around 0.92 while upside is bluesky and a vertitable moonshot given the rate at which large investors are bailing out of stocks at the moment.
Momentum is slowing in both the AUDUSD/AUDJPY and also gold. Check out the daily gold chart and you can see it has made 3 consecutive higher highs but the RSI has fallen on each subsequent occasion - a classic 3-drives to a top formation showing large momentum divergence.
I am not saying that we will see gold for the price of dirt and the AUD around US0.10c but there looks to be a healthy little correction coming for these instruments.
For those who are more used to seeing divergence using the RSI, set your RSI to 20 (a little longer period so it removes more fake outs) and draw a line under the two most recent lows on the daily RSI. Now draw a line under the 2 most recent lows on the daily gold chart price action.
See how they go in opposite directions? That's not good if you're long
This basically translates to - most of the large players bidding up the price to get out of the trade leaving the retail traders holding the baby at unsustainable levels with very little bid interest support should sellers come in at these new highs.
Have a great day everyone.
AUDUSD currently fits this mold, it stands out squarely on "the sheet" as the only currency with a bid in it and would most likely be taking its strength from the recent pop in the gold price.
To perma-bulls in the Aussie carry trade it may come as a surprise that the AUD is not actually the same as gold however once China hike their interest rates this weekend we should expect to see a different scenario unfold and this to be realised quite quickly. Downside risks in the Aussie remain in the 0.9550 region and then around 0.92 while upside is bluesky and a vertitable moonshot given the rate at which large investors are bailing out of stocks at the moment.
Momentum is slowing in both the AUDUSD/AUDJPY and also gold. Check out the daily gold chart and you can see it has made 3 consecutive higher highs but the RSI has fallen on each subsequent occasion - a classic 3-drives to a top formation showing large momentum divergence.
I am not saying that we will see gold for the price of dirt and the AUD around US0.10c but there looks to be a healthy little correction coming for these instruments.
For those who are more used to seeing divergence using the RSI, set your RSI to 20 (a little longer period so it removes more fake outs) and draw a line under the two most recent lows on the daily RSI. Now draw a line under the 2 most recent lows on the daily gold chart price action.
See how they go in opposite directions? That's not good if you're long
This basically translates to - most of the large players bidding up the price to get out of the trade leaving the retail traders holding the baby at unsustainable levels with very little bid interest support should sellers come in at these new highs.
Have a great day everyone.
