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Kiwi in Bullish Trend

The Kiwi has entered a bullish trend. On our first chart below we see that the 25 day (in blue) and 50 day (in red) exponential moving averages are trending higher, with the 25 above the 50 EMA. This indicates that a bullish trend has commenced in this currency pair.
But just how far can this rally go? The 20 month Average True Range is currently at 370 pips. But of course this is the high to low range, not the open to close range we need to estimate a target.
I’ll be placing my forecast just be…
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Aussie Ready for a Breakout

The Aussie looks ready for a breakout. Look at our first chart below. The AUD/USD has been pushing against the resistance area around 0.7700-0.7800 for the past 12 months. We've now quoted at 0.7671 and we are again approaching this area. With each subsequent test the odds increase that the resistance will eventually be broken.
Where do we target in case of a breakout? The monthly ATR for this currency pair is now at 388 pips, as can be seen below. But this is high to low range. The open to clos…
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Seven-Year Uptrend to Continue

The seven-year uptrend in the SP500 is set to continue. Look at the monthly chart below. This US Stock Index is now in one of the longest bull runs in history. Of course eventually the party will end. But until it does, it would be unwise to bet on red.
On the second chart below we can see a shorter-term view of the market. Notice the classic V-shaped pattern below. This is a bullish pattern. It signals that the bears have been trapped by the sudden price rise. More gains should follow from her…
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Overhead Resistance Continues to Keep a Lid on Prices

The overhead resistance in the EUR/SEK continues to keep a lid on prices. On the chart below we can see a general area between 9.600 and 9.7200. Notice the many spikes near this area in the past. This signals strong selling pressure.
We are currently quoted at 9.6252, so we're right inside this resistance area. This means that any price gains should be minimal. In September we traded to a high of 9.6654 but the pair again met heavy selling to bring it down to current levels around 9.62-9.63 Euro…
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Pound to Break 5 Year High

The Pound made a new 5 year high on Thursday but as the trading week was trading to a close, Sterling was pushed back below the 1.7050 figure. The sharp selloff on Friday may lead to a short term move lower in the currency pair. Here is the price action in gbp/usd during the past few days.
I think the move higher will continue, even if we get a temporary retracement going forward. I expect the 2009 high at 1.7050 to give way in the coming month. Above 1.7050, the next important resistance stands…
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