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The EUR/USD can also be seen in a large wedge formation setting up since March 2nd, 2010. The pair has been in a tightening range since that time with lows getting higher and highs getting lower. This pattern typically indicates a powerful move in one direction or the other. The pair has currently broken just above the top trendline and traders are trying to see if the pair will hold above the 1.3670 level. This would pave the way for further movements to the upside. The next level of reistance comes in at 1.3735 (the high for the past week.) The EUR/USD is well away from the 200 Day MA at 1.4327. On the downside, support will be seen at the 100 Hour MA (blue line) at 1.3642. Below that, the 200 Hour MA at 1.3614 and then the 50% retracement level at 1.3586 come into view.

The EUR/USD can also be seen in a large wedge formation setting up since March 2nd, 2010. The pair has been in a tightening range since that time with lows getting higher and highs getting lower. This pattern typically indicates a powerful move in one direction or the other. The pair has currently broken just above the top trendline and traders are trying to see if the pair will hold above the 1.3670 level. This would pave the way for further movements to the upside. The next level of reistance comes in at 1.3735 (the high for the past week.) The EUR/USD is well away from the 200 Day MA at 1.4327. On the downside, support will be seen at the 100 Hour MA (blue line) at 1.3642. Below that, the 200 Hour MA at 1.3614 and then the 50% retracement level at 1.3586 come into view.

The EUR/USD can also be seen in a large wedge formation setting up since March 2nd, 2010. The pair has been in a tightening range since that time with lows getting higher and highs getting lower. This pattern typically indicates a powerful move in one direction or the other. The pair has currently broken just above the top trendline and traders are trying to see if the pair will hold above the 1.3670 level. This would pave the way for further movements to the upside. The next level of reistance comes in at 1.3735 (the high for the past week.) The EUR/USD is well away from the 200 Day MA at 1.4327. On the downside, support will be seen at the 100 Hour MA (blue line) at 1.3642. Below that, the 200 Hour MA at 1.3614 and then the 50% retracement level at 1.3586 come into view.

The GBP/USD looks like a giant coil spring, or a wedge formation on the 1 Hour chart, as we start to see signs of the three’s a crowd rule. This rule states that when the price and both the 100 and 200 MA’s converge, there is bound to be a move in one direction or another. As traders we now do our analysis and get prepared in either direction as the market loads up pressure on the GBP/USD to move.

In the 5 Min chart, we can see the pair testing trend line resisntance in the past hour. The market as a whole, is likely trying to gage the tops and bottoms of this large wedge. The pair has room on the top side, to the next major level of resistance at 1.5177 which is the 38.2% move from high on Feb 17, 2010 to the low on March 1st, 2010. Above this the pair will hit the 50% retracement level at 1.5299. If the pair breaks lower, support will be encountered at 1.4888 and below that at the 2010 low of 1.4784.

The GBP/USD looks like a giant coil spring, or a wedge formation on the 1 Hour chart, as we start to see signs of the three’s a crowd rule. This rule states that when the price and both the 100 and 200 MA’s converge, there is bound to be a move in one direction or another. As traders we now do our analysis and get prepared in either direction as the market loads up pressure on the GBP/USD to move.

In the 5 Min chart, we can see the pair testing trend line resisntance in the past hour. The market as a whole, is likely trying to gage the tops and bottoms of this large wedge. The pair has room on the top side, to the next major level of resistance at 1.5177 which is the 38.2% move from high on Feb 17, 2010 to the low on March 1st, 2010. Above this the pair will hit the 50% retracement level at 1.5299. If the pair breaks lower, support will be encountered at 1.4888 and below that at the 2010 low of 1.4784.

The GBP/USD looks like a giant coil spring, or a wedge formation on the 1 Hour chart, as we start to see signs of the three’s a crowd rule. This rule states that when the price and both the 100 and 200 MA’s converge, there is bound to be a move in one direction or another. As traders we now do our analysis and get prepared in either direction as the market loads up pressure on the GBP/USD to move.

In the 5 Min chart, we can see the pair testing trend line resisntance in the past hour. The market as a whole, is likely trying to gage the tops and bottoms of this large wedge. The pair has room on the top side, to the next major level of resistance at 1.5177 which is the 38.2% move from high on Feb 17, 2010 to the low on March 1st, 2010. Above this the pair will hit the 50% retracement level at 1.5299. If the pair breaks lower, support will be encountered at 1.4888 and below that at the 2010 low of 1.4784.

A burst of activity in the USD/CAD has pushed the pair hard up into the Goalposts, causing the pair to surge above the 100 hour MA (blue line) all the way to 1.0315 (200 Hour MA, green line) as seen in the 1 Hour chart.

Moving to the 5 Min chart the pair has backed down to the 38.2% retracement as the market prepares for its next move. The pair will at least need to break and hold above the 200 Hour moving average at 1.0315 to give signs of a continued move higher. The next target on the upside is the 38.2% level as seen on the 1 Hour chart at 1.0391. If the pair fails to move higher, a move lower would put the pair into support at the 100 Hour MA at 1.0271.