As of Thursday morning (New York session), after a prolonged period of major directional volatility, the majors currently appear to be in a general state of consolidation. Distinct continuation patterns of consolidation like flags and pennants are appearing on many of these charts, suggesting that the next major breakout moves could potentially be a continuation in the direction of dollar-weakening. Watch for any strong potential breaks out of these consolidation areas, which could presage major directional moves.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading (John Wiley & Sons), will be released in early 2009.
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