Autochartist Updates

By: Dima Chernovolov

Analyst, Autochartist

GBP/JPY is moving down inside the Clear Triangle chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this chart pattern at the 6 bar level as a result of the low Initial Trend (measured at the 3 bar level), above-average Uniformity (6 bars) and substantial Clarity (8 bars). This Triangle continues the predominant downtrend visible on the daily and the weekly GBP/JPY charts. The top of this chart pattern (point A on the chart below) formed when the pair reversed down from the resistance area made out of the 38,2% Fibonacci Retracement of the previous extended weekly downward price impulse from the August of 2009 as well as the resistance level 135.00 (as is shown on the second chart below). The pair is expected to fall further toward the lower support trendline of this Triangle in the nearest time.

The following weekly GBP/JPY chart highlights the technical price levels mentioned above:

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By: Dima Chernovolov

Analyst, Autochartist

EUR/ZAR continues to fall inside the Uniform Triangle chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 5 bar level as a result of the low Initial Trend (rated at the one bar level), near maximum Uniformity (8 bars) and above-average Clarity (6 bars). This chart pattern continues the overriding multi-year downtrend visible on the daily and the weekly EUR/ZAR charts. More specifically, this Triangle follows the preceding sharp weekly downward price impulse from the major resistance at 11.50, standing close to the 38,2% Fibonacci Retracement of the previous long-term downward price-move from the October of 2008. The top of this chart pattern (point A on the chart below) formed when the pair reversed down from the 38.2% Fibonacci Correction of the aforementioned preceding weekly downward price impulse from 11.50. The pair is expected to fall further in the nearest time.

The following weekly EUR/ZAR chart shows the longer-term picture of this currency pair’s movement:

For further information on this and other Autochartist products visit www.autochartist.com

*Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Read the full risk disclaimer and privacy policy on trading at...

By: Dima Chernovolov

Analyst, Autochartist

NZD/JPY continues to fall inside the Clear Descending Triangle chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is measured at the 5 bar level as a result of the following values of the individual Quality indicators: average Initial Trend (rated at the 5 bar level), lower Uniformity (4 bars) and significant Clarity (7 bars). This chart pattern continues the preceding sharp downward price impulse from the major long-term resistance at 69.00. The pair is expected to fall further in the nearest time, which is also indicated by the PowerStats analysis shown below.

As can be seen from the following PowerStats chart, the upper boundary of the daily Expected Price Range (EPR) for NZD/JPY for tomorrow (66.4596) stands below the upper resistance trendline of the above Descending Triangle, while the lower boundary of the EPR (65.1024) stands below the lower support trendline. Both of these facts heighten the likelihood of further losses for this currency pair tomorrow.

For further information on this and other Autochartist products visit www.autochartist.com

*Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Read the full risk disclaimer and privacy policy on trading at...

By: Dima Chernovolov

Analyst, Autochartist

USD/SEK continues to fall inside the clearly-formed Triangle chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 6 bar level as a result of the equally measured Initial Trend and Uniformity as well as the near-maximum Clarity (rated at the 8 bar level). This Triangle continues the strong downtrend visible on the daily and the weekly USD/SEK charts. More specifically, this Triangle follows the sharp preceding down-thrust from the major resistance at the round price level 7.0000. Points A and B of this Triangle formed when the pair reversed down from the two consecutive Fibonacci Retracement levels of the aforementioned preceding downward price impulse from 7.0000 – point A formed at the 61,8% Fibonacci Retracement and the B at the 50% Fibonacci Correction of this impulse. These two points also stand close to the upper resistance trendline of the longer-term Triangle (shown on the second chart below) – which increases the chances that the pair will fall further in the nearest time.

The following daily USD/SEK chart shows the technical price levels which have affected the recent movement of this currency pair:

For further information on this and other Autochartist products visit www.autochartist.com

*Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you...