Foundations of Technical Analysis: The Power of Parallels & Analogs

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Foundation of Technical Analysis Series- Click here for the complete series and webinar archives

In this episode of our bi-weekly webinar on the Foundations of Technical Analysis, we reviewed price action on the DXY (dollar index) on the back of the 4%+ decline since the start of the year. An analog of the early 1994 breakdown has been extremely useful in interpreting price action and although the broader picture remains bearish, the index is approaching areas of interest for a reprieve both in price and time.

Topics discussed include:

• Using analogs in price action to identify price patterns
• Multi-timeframe analysis
• Examining Momentum (RSI) – basics / helpful insights on how to effectively use momentum
• Identifying slope / pitchforks
• Q&A Session

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A review of the latest GBP/USD, USD/JPY & AUD/JPY setups published earlier this week highlight live examples of how we utilize our technical approach to translate an idea into an actionable trade.

• Near-term Setups in GBP/USD, USD/JPY, AUD/JPY
• USD/JPY Plummets to 4-Month Lows; More Pain to Follow?
• AUD/JPY Outlook Hinges on Break of Monthly Opening
• GBP/USD Breakout Underway - Topside Targets in View

Join us for the next Foundations of Technical Analysis Q&A webinar where we’ll take the entire session to answer your questions on trading. Click here to register free!

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---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list.