Monthly candles closed at the end of Wednesday’s trade and are worth reviewing as we head out of the northern hemisphere summer period. All of the major stock indices closed with indecision-style candles although the NASDAQ carved out a close above the key 5,200 level marking the highest ever close for the tech-heavy index. Many FX pairs also closed with indecision-style candles but a few beaten down pairs managed to carve out reversal-style candles and it is this latter group that FX traders should note.
NB: I am away for the next few days so further updates will be brief and few during this time.
Forex Indecision-style monthly candles:
EUR/USD: a bearish coloured Doji and closed just below the key 1.12:
GBP/USD: A ‘Spinning Top’ candle and closed just above the key 1.30:
NZD/USD: a bullish coloured ‘Spinning Top’ and closed just below the key 0.73:
USD/CAD: a bullish coloured ‘Spinning Top’ and closed just above the key 1.30:
AUD/JPY: a bullish coloured ‘Spinning Top’ BUT in a bit of limbo:
GBP/NZD: a bearish coloured ‘Spinning Top’ and closed just above the key 1.77:
Forex bullish-reversal style monthly candles: this is the group that I suggest FX traders take most note of as these pairs remain on the bearish radar for many commentators. These reversal candle formed above major support levels and so I would want to see a close and hold below these regions before being confident of any bearish continuation:
USD/JPY: a bullish-reversal ‘Hammer’ candle AND closed just above the key 100:
EUR/JPY: also a bit of a bullish-reversal ‘Hammer’ candle AND closed just above the key 115:
GBP/JPY: a bullish-reversal ‘Hammer’ candle and closed just above the key 134:
EUR/AUD: a bullish-reversal ‘Hammer’ candle and closed just above the major support trend line:
GBP/AUD: a bullish-reversal ‘Hammer’ candle BUT closed just below the key 1.75:
Stock Indices: all closed with indecision-style candles:
NASDAQ: A bullish coloured ‘Spinning Top’ BUT this closed at its highest ever level and above the key 5,200 breakout region:
S&P500: a bearish coloured Doji BUT closed above the key 2,135 level:
DJIA: a bearish coloured Doji:
Russell 2000: A bullish coloured ‘Spinning Top’ BUT this closed above a triangle trend line supporting a bullish breakout:
DAX: A bullish coloured ‘Spinning Top’ BUT this closed above a triangle trend line suggesting a bullish breakout:
FTSE: A bullish coloured ‘Spinning Top’ and closed just below the key 7,000 level:
TSX: A bullish coloured ‘Doji’:
XJO: a bearish coloured ‘Inside’ candle but holding above a long-term support trend line:
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