Autochartist Updates

By: Dima Chernovolov

Analyst, Autochartist

EUR/NZD continues to decline after the recent completion of the high Quality Flag chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 8 bar level as a result of the strong Initial Trend (measured at the maximum 10 bar level), below-average Uniformity (4 bars) and substantial Clarity (9 bars). The completion of this Flag continues the strong downtrend visible on the daily and the weekly EUR/NZD charts. The top of this chart pattern (point B on the chart below) formed when the pair reversed down from the resistance zone made out of the round price level 1.6000 and the 50% Fibonacci Retracement of the preceding sharp daily downward price impulse from May of this year. The pair is expected to fall further toward the Forecast Price 1.5630.

The following daily EUR/NZD chart shows the aforementioned resistance levels:

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By: Dima Chernovolov

Analyst, Autochartist

AUD/CAD continues to fall after the recent Breakout of the Double Top chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 7 bar level as a result of the strong Initial Trend (measured at the 8 bar level) and average Uniformity and Clarity (both rated at the 5 bar level). The completion of this Double Top reverses the previous upward correction to the longer-term daily downward price impulse from the major multi-year resistance level 1.0550 which reversed the pair sharply down in the February of 2004. The pair is expected to fall further toward the Forecast Price 1.0079 as can also be seen from the PowerStats chart below.

As you can see form the following PowerStats chart, the lower border of the daily Expected Price Range for AUD/CAD for tomorrow (1.0073) stands very close to the Forecast Price calculated for the completion of the above Double Top (1.0079) – which heightens the likelihood that this currency pair will fall toward 1.0079 in the nearest time.

The following monthly AUD/CAD chart shows the previous price action close to the major resistance level 1.0550:

*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...

By: Dima Chernovolov

Analyst, Autochartist

EUR/SEK continues to fall after the recent Breakout of the horizontal Key Support level 8.4593 identified by Autochartist on the 4-hour charts. Autochartist rates the Significance of this Key Level at the 3 bar level which corresponds to 3 recent price reversals from this support. This Key Level Breakout continues the predominant downtrend that can be seen on the daily and the weekly EUR/SEK charts. The pair had previously reversed down (at point A) when it failed to approach the strong resistance area made out of the round resistance level 8.7000 (former strong support which reversed the pair sharply up in February of last year) and the 50% Fibonacci Retracement of the downward price impulse from May - which broke the aforementioned support at 8.7000 in July. The pair is expected to fall further toward the Forecast Price 8.3915.

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

*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 http://www.ibfx.com.

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By: Dima Chernovolov

Analyst, Autochartist

EUR/USD continues to fall after the recent completion of the well-formed Triangle chart pattern identified by Autochartist on the 4-hour charts. Autochartist rates the overall Quality of this Triangle at the 5 bar level as a result of the low Initial Trend (one bar) and significant Uniformity and Clarity (rated at the 7 bar 8 bar levels accordingly). The completion of this Triangle continues the preceding weekly downward price impulse from the middle of 2011. The top of this Triangle (point A on the chart below) formed when the pair corrected down from the strong combined resistance area lying at the intersection of the 38,2% Fibonacci Retracement of the aforementioned weekly downward price thrust from 2011 as well as the weekly upper Bollinger Band (as can be seen from the second chart below). The pair is expected to fall further toward the Forecast Price 1.2852.

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

*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 http://www.ibfx.com.

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