The Long Term Trend
by John on 28/11/08 at 12:45 pm
It’s important to keep an eye on the longer term trend.
Let’s check the long term trend on the most important currency pairs:
EUR/USD:
The EUR/USD weekly chart shows a severe downtrend that started on with a double top breakdown formation. In just a couple of months, EUR/USD lost the gains it made in 2 years.
GBP/USD:
The GBP/USD started a strong downtrend last July, and accordingly with the weekly chart, this trend remains solid.
USD/CAD:
The USD/CAD was on a solid downtrend that lasted years. Then the currency pair formed a trading channel.
Finally the USD/CAD got strength and completed a strong breakout.
Once again, the USD seems particularly strong against other currencies.
AUD/USD:
In 4 months, the USD recover all the value it have lost in 2 years against the AUD. The currency pair now seems to be consolidating.
USD/JPY:
The JPY continues to gain ground against the USD. The downtrend on the USD/JPY remains intact, and the currency is now touching on a strong support area.
