For those aficionados of Japanese candle sticks, a Doji is a sign of indecision, a price bar that is simply shaped like a cross indicating that despite the price range opening and closing prices were precisely the same at the end of the period. It often presages a change in trend, more so on the daily charts, where you can see a Doji in the middle of this year's dollar top formation that appeared on Jan 29.
This morning a Doji appeared on the hourly study, not as powerful signal as on the daily, but always something to take note of, one appeared two day's ago at the onset of the European session, and presaged the low of 1.2100 that led to a rebound to 1.2200 by the time New York was in full swing. Today the Doji doesn't seem to be saying much however, other than the market is indecisive, isn't sure what way to go, and isn't sure whether this is the beginning of the end of the dollar pull back, or the end of the beginning.
On the weekly study a close here would be a second up week with a higher high, higher low, higher close, and has broken above the downtrend resistance that kicked in at 1.2150, and looking at that chart it is easy to be bullish. Funnily enough the fund manager that made that excellent EUR/USD top call the week before last is also suffering similar pangs.
Initially forecasting a two month dollar pull back they are wondering whether it may end in just another week or so. Meanwhile spot is exactly where it opened the New York session, 1.2187/90 and the 61.8% Fibo of 1.1995/1.2285 the most recent trading extremes comes in at 1.2175 and seems to be holding the sell off. Decisions, decisions.
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