The ECB Effect

So the ECB posted its rate announcement today and it was...to say the least; BORING. They didn't change anything actually but there was a reaction. Lets go over how the most relevant currency pairs reacted. Highlighted in blue is a two-day view of the pairs price along with its High and Low between the two days.

EURUSD

Has been falling steadily for over 30 days straight pretty much but yesterday it was pretty much congested and stuck in a range just before the end of the day when it consolidated; which is expected before news. What Most people didn't expect and what I predicted was the bounce in this pair. Contrary to the downtrend the market turned to the upside today. I know that banks and institutions use news for reasons to instigate sentiment and direction. This is what they did today. They sent the price all the way up to 1.26908 approx. 108 pips from yesterday's low of 1.25828. If we get a close above today's high/resistance(1.26650); we should see this pair turn to the upside for an extended period. The 60min chart below shows us what I'm talking about. Observe the RSI above 50 today... 

EURJPY

This pair has been on a downtrend as well but there is no rest for the weary when it comes to the Yen. Traders have been relentless in their pursuit to acquire yen for exchange for European Currencies. Monetary policies have created this atmosphere. Yesterdays high was met by a shooting start at 138.799. Towards the end of the day yesterday we saw our support of 138.00 broken, the pair slid into the London Session saw a new low of 136.947 and the price became congested around the time of the ECB Rate News; Leading me to believe the bank traders were simply trying to confuse the retail markets as well as get customer orders in before the price got away from them. Below on a 60min chart we can observe this behavior. 

EURGBP

So yesterday this pair fell but managed to pick itself up during the Asian Session and end the day just barely higher than it opened. Today was a completely different story. I wasn't sure when but I know there would be a bounce in this pair and boy oh boy did it bounce today. I knew this because of the consolidation without range I noticed on the 60min chart. Below on that same chart we can see the pair test a low of .77660 yesterday AND the day before that without breaking down. From there the pair used the new to bolster itself up to a high of .78497; passed the .78277 intra-week resistance. I see the tide turning for this pair and more positive days in its future. Below we can observe the RSI moving from below 50 to overbought in just 48 hours. Interesting. 

EURAUD

The Australian traders are giving the markets hell right now (lol). If you don't know anything about the Aussie traders and pairs I'll give you a bit of advice: Be early, because they move fast and often. This pair took a nice ladder up over the past few weeks and ended up going haywire in a realm of congestion just as it met new highs. Yesterday the pair failed to make a higher high (1.45609) and ended up falling dramatically. It ended the yesterday near its opening price and  roamed into today falling below its medium term support (1.44500) which looks like it could now serve a resistance. Today it has successfully made a lower low at 1.43447 and has began to retrace towards the aforementioned resistance test. Below we can observe the pair's RSI just above 50 but that seems to be the signal for the bears to come in and take control. 

Study: Fracking and Quakes in the Markets

 Because I have quite a few different instruments to update you all on I wont spent too much time on the salutations. Just as an overview we will be covering EURUSD, USDCAD, USDJPY, NZDUSD, GBPUSD, AMAG, and C.

First lets start with NZDUSD; looks to me like the pair has found some support (and a good place to take profits) at .81223. I believe this small retracement will only last until previous support is met at around .82477. From this level traders will most likely see the price fall dramatically over the next 7-14 days. Below shows the daily chart for this pair and my lines should help my story.

Next up we have EURUSD which is making me so happy I cant believe it's not butter. This pair has been on a slippery slope for the past 2-3 weeks and has finally found some support around our entry of 1.296...exactly where I thought it would seeing as how this is the 61.8% retracement level on the weekly chart and historical support going back to 2013 and 2012. For this pair I see small buying at first to shake up the shorts and get them to offer up more EUROs at lower prices just so the big boys can come in and carry the price right back to our 1.32-1.33 range. From there I'm looking for my target at 1.37 to be hit...Now that's swing trading at its finest if this works out. as of now this all looks like it could work out. Below in the first chart is the weekly chart and after is the daily chart I included to give you a closer look at the situation. 

GBPUSD has been a stubborn old man recently, giving traders no reason to want to participate in its action. The price has been hella volatile and I'm sure amateur traders are pulling their hair out trying to guess the next move. I believe, and believe me, the 1.60 level might be hit just to destroy the longs, confuse the shorts, and pick up pending orders. If not, the move higher is set. My entry was around 1.62 and my target is around 1.64. Another possibility is the pair moving to 1.64 as a resistance test only to let the thing drop heavy through the 50% retracement level 1.60, right on to the 61.8% level 1.57. The weekly chart shows a bit of a hammer candle but the daily just shows a doji supported by some strong positive candles but nothing too major yet. Observe the language...a lot of price action going on here. Below is a daily chart which shows us what I'm talking about. 

Lets look back to USDCAD and remember that last week we saw a triangle/bullish flag, a bearish divergence, AND a resistance level approaching.  Here we are today dealing with those sings and signals. From 1.11 the price has fallen sharply and given me confirmation that my signals and indicators (tho they're delayed) did not steer me in the wrong direction. My next move in this pair is to sell support turned resistance at around 1.10 and my first target is 1.09 and my second is 1.08 just to warm myself up lol. Below is a chart of the daily candles of this pair and you can clearly see what I'm hunting for and why.

And last but certainly not least for the FOREX section USDJPY. I've had this pair bought at 104.90 and held it for over 2 weeks now. It's been highly successful and profitable. From its current level is 107.03 as I write this post and has posted a doji from yesterdays lackluster day. My first target is still 110.00. Basically if it works don't mess with it. My initial position is working so no need to manage anything right now. Patience grasshopper. 

Let's direct our attention towards the U.S. Equity Markets. Yesterday I mentioned two instruments I had my eyes on. The first being AMAG, it has been showing me exactly what I want to see. My 22.99 resistance sell order has been respected but hasn't done much more which leaves me a bit cautious. Today the pair ranged between 22.99 and support 22.79. My target is around 21.50 or the nearest resistance level from the move up. Below is a 15 min chart showing the inactivity in the stock and my entry prices along with my targets. 

Now completely last on today's analysis report, or whatever you want to call this long ass chart hall, is  C. Here, we're literally trading against or with the bank traders lol. Yesterday I mentioned this stock because it showed some promising movement to the downside based on its technical performance. So far this stock has only flirted with my entry which is a stop-limit short sell; because I'm looking to be carried with momentum downwards towards the bottom of its range instead of being jerked up in down for three days only to be stopped out if the market decides to turn around and go home. 51.90 and below is all I'm interested in. For now I'm waiting for orders to be filled but I still feel the same way about this stock as I did yesterday.Below is a 60min chart which shows us todays ranging and my entry price level and my intial target. 

I'm not interested in hearing about you losing your money because you tried to copy any of these trades so do yourself a favor and study your own research and analysis or email me so you can pay me for my complete ideas. Other than that youre on your own lol.