Caroline Carlin's Blog (169)

Extreme prices are a signal of impending market exhaustion.

Pivot points, along with projected levels of support and resistance, are the most commonly used indicators of potential market turning points in forex currency trading.

However, there are also many other instruments to help traders analyze the situation, like moving averages,…

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U.S. Unemployment Claims, U.S. Producer Price Index and U.S. Current Account releases are due at 8:00AM EST.



Last week's jobless claims had dropped to 451K. Expected forecast is that they will rise to 463K. A continuation of the fall would have an impact if this index drops below 430K. On the other hand, traders could appreciate a decrease on inflation in a slightly positive previous release of PPI Index. Today's expectations are focused on a… Continue

The Mexican Peso has been gathering strength since August 2010, top of the steady 10000 point consolidation range that has been taking place between 13.4000 and 12.4000 levels, from the beginning on the year, on daily charts.



A broader weekly view of the descending wedge would suggest we might be ready for a further run to the lows and pattern baseline at 12.1270, which if broken would lead to a test of the strong support line lying almost another 10000 points below, at… Continue

Australian Dollar just pierced this week November 2009 high of 0.9404, advancing well above the 80% retracement mark on the last and deep weekly swing low.

This swing itself was a 76.4% retracement on previous move from early 2001 all-time lows at 0.4773 to july 2008 all-time highs at 0.9847, and ended at 0.6006 on october 2008.



Although this is a longer term view, the present monthly levels would suggest an attempt to test… Continue

Dollar weakness along with Asian renovated strength have set up a fireworks show in almost all currency pairs early this week. Gold breaking all time highs without an apparent fundamental reason adds to the picture a remembrance of similar events in 2008, a few weeks before the financial collapse that took place at about this time of the year.

Watch around the corner.

Singapore Dollar strength broke 2008 support level zone 1.3450 at the beginning of this month, and apparently isn't yet close to give back its advance to these all-time highs.

If we apply a pitchfork to the monthly chart, along with a fibonacci retracement of the last swing high, we can see that the median pitchfork roughly… Continue

As a Forex trader, you have an ample choice of conventions that involve both price and time progressions across the charts. Choosing the best trading timeframe can be quite confusing, especially when you try to spot the trend that will fit in with your particular strategy.



First of all you should define which one of them is the best time frame for YOU (the one that matches more precisely your own inner rhythm and pace). If you're basically a scalper… Continue

One of the most recurring questions that I get either from new or intermediate traders is related to the expected accuracy of this or that technical indicator. Almost every trading system seems to be based on one or more of these instruments of measure, which will show different relationships between general market behavior, time and price itself.



At a certain point of their own learning curve, I believe each and every trader has been through the dilemma of finally finding the "best"… Continue

 

USDCAD

As expected, the Loonie retraced even further through our targets closing on Friday at 0.9789, and breaking down the daily ascending trendline. Price is back again inside the descending channel and a retest of the confluence of the weekly SMA34 and middle Bollinger bands as well as daily SMA200 is very near (0.9730/40) and round number…

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