DRFX FOREX SWING TRADING

Consolidation has been the name of the game in the Currency Market for most of 2014 and the AUD NZD has faithfully played its role in this regard. A large 300- Pip Pennant can now be seen following a nearly 3-year downtrend that started in 2011. Within the next few days, we will see either a continuation of this pattern with a Bearish break down to Support or a Bullish move that starts a new Uptrend towards the major Outer Downtrend Line. The strong decline in the AUD NZD started from the high of 1,3794 in March 2011 to eventually end at the low of 1,0491 in January 2014. In the process, it created an Inner and Outer Trend Line as the market accelerated in the latter part of the downtrend before ending with the current Pennant formation. DAILY CHART This Pennant can be seen more closely on the next chart where a small Range has also been formed at the Resistance. DAILY CHART At this point, the currency pair could continue to m...

We have been in a Range setup on the Daily Chart for some time now and with it being above the Outer Uptrend Line, a major breakout could be on the horizon. If the breakout is Bullish, then the major Resistance at 105,43 that ended the 9 month trend would be the first major target. On the other hand, the Range setup is also part of a very long period of sideways movement for the USD JPY which has broken an Inner Uptrend Line in the process. Since major trend changes are normally preceded by sideways patterns and breaks of Inner Trend Lines, a bearish bias in favour of the Japanese Yen might be the better forecast for 2014. The current Range pattern of the pair can be seen in terms of the large Uptrend that ended in December 2013. You can see the break of the Inner Trend Line and the gradual drift towards the Outer Trend Line that has now taken the form of the Range. DAILY CHART Between the Support and the Resistance boundaries, the pair has been moving by 168 Pips o...

Hundreds of Pips in either direction appear to be possible for the next few weeks if we see strong Bullish or Bearish breakout signals. The Weekly Range has recently been hit after a very long and slow trend and has now settled above a major Downtrend Line. A convincing Bullish Candle break above Resistance would put the 0,9400 area in play, while a break short to also take out the Uptrend Line would make 0,8700 the long-term bearish target. The currency pair has started to move within a small Range above the Inner Uptrend Line, following a rally to the 0,9100 area. DAILY CHART The gains for the Swiss Franc also put the pair above a major Outer Trend Line of a previous Downtrend. DAILY CHART As you can see, the recent uptrend was part of a break from the Inner Trend Line to the Outer Trend Line of that Downtrend. From this point, the market could either break higher for an even stronger Uptrend or break lower to resume the overall Downtrend. In co...

Having broken the Outer Uptrend Line as expected, the CAD CHF is now at a bit of a crossroads. The Double Tops that were formed were strong enough to lead to the bearish break, but may not be enough to push the pair down much farther. We could see the formation of a Range that eventually leads to the start of a downtrend, but if we see a strong Bull Candle above the Counter Trend Line (CTL) the Uptrend could continue. Daily Chart below shows the breakout that took place below the Inner and Outer Trend Lines. Supporting this breakout were the Double Tops and the fact that we had rallied by  600 Pips, exceeding the Monthly Range for this pair. DAILY CHART Despite this break, the Double Tops seen here were too weak to start a significant downtrend. The first part of this pattern was strong, but the weakness of the candles for the 2nd `Top` rendered the signal too weak. DAILY CHART The candles shown here, however, are closer to what we would e...

This pair has recently attempted to start a breakout from a Range on the Daily Chart, with a break of a Counter Trend Line (CTL) setup below the Support. This is a common way for Consolidation breakouts to begin following a test of the Range with this CTL barrier. However, the bearish break candle was not strong enough and would need to be followed by another bear candle to convincingly start the downtrend. Nevertheless, with a break of the Uptrend Line already taking place and a False Breakout of a previous Consolidation, it is only a matter of time before the USD begins to regain lost ground against its Aussie counterpart. We can see the CTL setup that was broken in the graph below. CTLs tend to appear at the Resistance or Support of a broken Consolidation as a way of testing these areas before the breakout begins. DAILY CHART Despite being a strong candle on its own, the break below the CTL was not far enough to start the breakout. The ...

This pair has finally come to the end of a very strong Uptrend that began in June of 2012, reaching its peak in March of this year. As with most trend changes that are about to take place, the market goes through a period of Consolidation in the form of a Range or a Pennant before breaking out in the new direction. As these patterns are being formed, however, they can also provide setups to trade between Resistance and Support. Such an opportunity may be seen in the next few days if the 2nd Support price point is formed. Once a strong enough Bullish Candle signal appears to also break the current Downtrend Line, a rally of 350 Pips will be on offer for the sharp Swing Trader. Looking at the figure below, we can see the current sideways movement of the pair that followed the end of the Uptrend. The Inner Uptrend Line was broken and is now hovering above the Outer Uptrend Line, indicating an imminent trend change bearish. DAILY CHART The char...