Sunday, January 04, 2009

Forex: Euro and The Swiss Franc



Above is a chart of the Euro and the Swiss franc and in the bottom panel is the MACD for the Euro. You'll notice back in November the Swiss Franc made a new low but the Euro did not. The Euro bottomed before the Swiss Franc just prior to both markets having an explosive rally to the upside. Now we are seeing a similar divergence but to the down side.

Last week the Swiss Franc made a new high but the Euro did not. This divergence is bearish in my opinion and may suggest weakness for these two currencies. You'll also notice the MACD for the Euro has just given a sell signal on Friday.

4 comments:

michael said...

Hi Kevin,

I have been looking and studying your examples going back in the archives and I really like the repeating time cycle themes and similar length legs that reoccur all the time in stocks and futures. Question: How do you usually go about finding these recurring patterns? eyeball or by a program?

Kevin said...

Hi Michael,

I wish I did have a program that would find time cycle patterns. I pretty much just eyeball the charts and thats how I find the cycles.

pauline said...

Hi kevin!

I was converted from USD to EU last aug'08 by citibank..I need advice in its simplest form since i know nothing of this.I am single mom and saving this amount for my daughters college tuition.
Thanks!

Pao

pauline said...

Hi kevin!
I was screwed up by citibank.they got me into a dualy currency,now my USD was converted to EU and its falling off. I need help.i know nothing about this things,im saving this amount for my daughters tuition. I am single mom,unemployed as of the moment..

I need advice in the simplest form..

thanks!

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