Saturday, June 7, 2014

Not all wicks are created equal - EURAUD

The lower wick on EURAUD D chart shows a clear rejection of the move below the support area 1.4600. On Friday we followed this up with a large doji. However we are still below the D 8lwma, below the RSI 50 level and RSI has not crossed up.

I am not convinced by any candle that cannot cause a close the other side of 8lwma. Could this be the start of a move up, of course. We are possibly 2 days (lower wick and the doji) into the 3-7 day reversal pattern we typically look for in a change of direction.

The 4hr shows the higher low and RSI cross up, but we are still below the 50 level and the upper trend line has not been broken. I haven't shown the lower trend line that forms the triangle.

Either way the flow needs to confirm next week.



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