A-B-C-D Trade - page 196
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Not confirmed in print media as of this writing, as news that SNB taking measures to weaken the CHF. Reportedly, by bloomberg t.v., they will inject liquidity and conduct psychical intervention.
U.S. equities getting slammed again. EUR/USD down on flight to safety as well as reaction to French banking sector and downgrade rumors.
Divergence on 1-hour and 30-min charts, with 2nd peak at 09:00. Drop has touched area of previous pivot 1.41513 near 585-degree line of SQ9(Price). This is at the 88.6% retrace based on using Aug 8th Low.
Fibo fan provided resistance at peaks, along with 405-degree line.
Gold up, will comment further on this later.
Here's another chart on EUR-USD, a 1-hour with fibo fans pointing up and down.
Pointing down: High = July 27th 01:00 1.45350 Low = Aug 4th 23:00 1.40545
Pointing up : Low = Aug 4th 23:00 1.40545 High = Aug 8th 07:00 1.44005
Yellow horizontal marks previous high as resistance.
GOLD CFD XAU_USD has been testing previous high of 1779.80.
With gold and XAU_USD, let's see if there is a pullback after the European session closed. Recent similar transitions have done that. Volume should also fall.
With about 15 minutes left in the de facto European session, we can see resistance currently at the 127.2 extension price of 1787.43.
Tight directional plot: Low = 1752.23 High = 1779.90
Resistance level above are:
Mars 90-degree just above the 127.2.
138.2 = 1790.47, with Moon 270 also in neighborhood.
161.8 = 1797.00
We'll update the XAU_USD (gold) chart soon as the pullback has indeed occurred.
Attached is GBP/USD. The 30-min had BAJA bullish divergence. This is the 15-min view, in which we can see the strong bounce off of the 200% extension at 15:15 GMT, back up to the 161.8 for approximately 50 pips.
Attached is a split-screen of charts on XAU_USD (mimics gold futures).
Chart on the left utilizes PSQ9, with directional fib extension plot. Yellow horizontal is S&R. Price closed below the Mars 90-degree level after making a quick extension to the 161.8.
Chart on the right is a 15-min and has session colors, which emphasizes the importance of a trader's awareness of behavior when transitioning sessions. In this case, the pullback is likely attributed to profit taking after the European session ended 15:59 (blue box).
Indicator used is Time_modified_2
Volume indicator on right also shows drop after European close.
The right also plots retracement fibs with 1739.23 as the Low. We can see the candles close above the 50% fib price of 1775, at the pivot 16:45/17:00 GMT.
Split screen shows quick short off various fib resistance levels, and PSQ9 Mars and Moon.
Retrace fibs plot from Low = 1.41215 and High = 1.42404.
23.6 = 1.42138 (just hit 02:45 period)
Volume on the 30-min and 1-hour at the peak candle were lower than previous candle.
Split-screen again. On the right we have 2 charts with BAJA bearish divergence upon end of the 06:30 candle period.
Bottom chart utilizes PSQ9 and white fibs. 2 peaks at 02:00 and 06:30 were at the 61.8% and 50% fibs. We had already posted the quick short on the 02:00 peak.
Upper right chart has white 23.6 and 38.2 fibs at the 2 peaks.
Left chart is a 5-min with session colors. Fib plot was Low = 22:55 1.41215 and High = 18:25 1.42371.
07:00 European open rose to the 127.2 extension of 1.42683. Price declined to the 88.6 fib of 1.42239. Looking to left, we see previous support at this price level.
Notice indicator Money Flow Index (MFI), which is based on volume and displayed similar to RSI. Since we set RSI to 4-period (fast), it tend to display similar movement as price.
After price stopped at the 88.6 fib, we can see the divergence between the RSI(4) and MFI. Although this is on the 5-min chart, it does tell us not to get too excited with the subsequent bounce up yet.
***
European stocks up. S&P reaffirms France's AAA rating. Major French bank denied rumors of possibly requiring a bailout, or something to that effect.