EURCZK - Supporting Marabuzo threatened.

This month has seen EURCZK appreciate by 2.5% from the low.
This powerful rise has been reflected by the bullish tone of the Keltner channel and supported by the 13 day ema and by distinct Marabuzo lines.
This week the upside has stalled and the market attempt to profit take. This has resulted in volatile but trendless trading but the 13 day average is coming under threat and the support of the Marabuzo line from May 15th, 25.950, is becoming ever more crucial.
Certainly worth keeping an eye on from a closing basis perspective.
That's it from us for this week - here's hoping the weather is kinder this bank holiday weekend than the current wet, windy miserable outlook from my office window.
Enjoy.

USDCHF - Weekly Marabuzo line to limit setbacks

Investor demand for USDCHF since April’s low continued last week.

A 2nd positive weekly performance in succession was posted with a move that took the currency pair to the most positive levels traded for 9 months and a correction of 76% of the 2012-13 decline.

In addition momentum is supportive, prices are above the important 13 day moving average, and the market is ‘hugging’ the top of the Keltner channel – a trending indicator.

Overbought extremes offer a note of caution but allowing for some profit taking to develop but expecting setbacks to continue to be limited with the Marabuzo line created by last week's price action likely to attract investors on any dip.

USDCAD uses Marabuzo line as platform

Cold and grey here in London and the early FX market has lacked any really strong signals to get excited about.
Was disappointed to see #EURGBP post early gains - though they haven't been maintained but what was rewarding was the rise in #USDCAD,
This move is based on the Marabuzo line drawn by Tuesday's price action. This comes in at 1.0143 and the 2 subsequent days found buying interest close to that point while today's acceleration has confirmed the relevance.
Of course it is not the Marabuzo line alone that was the basis for a positive stance; the Keltner channel is bullish, prices moved back above the key 13 day moving average with Tuesday's improvement and the market is now through the top of the daily Ichimoku Cloud pattern.
Nonetheless the Marabuzo line was always going to provide a great level to work from.
Have a great weekend.

USDCHF - Marabuzo line acts as platform

April's decline based at a Marabuzo line created by February's sharp improvement - see the chart.
May's new demand has used that point as a platform for a move to the most positive levels traded for 9 months.

A move through the top of the weekly Ichimoku Cloud and a strong move upward from the 13, 100 & 200 day moving averages also emphasises teh importance of the Marabuzo line support.

Marabuzo Caps EURGBP

Interesting that even on a daily perspective the impact of  a Marabuzo line can stretch a surprising distance.
Take a look at the EURGBP chart below and you'll see how rallies since the Marabuzo created on the 25th April have been capped, on a closing basis, at this point.
We're looking at a potential retest of .8398/8400 lows but until the market closes above the Marabuzo line (or another is formed in due course) then the tone cannot be regarded as anything other than bearish.

Marabuzo line to support EURCZK

The market has taken some profits after gains from February’s low. But after a sequence of 3 negative weekly performances, and a correction of half of that upside, this week has seen a renewal of demand for the cross.


Yesterday's strong gains dominate that upside with the move taking prices through the key 13 day mvg avg and turning the important Keltner channel positive.

Trading is likely to continue to be volatile but setbacks are likely to be limited by 25.755, a Marabuzo line, on a closing basis.

EURGBP capped by Marabuzo Line

Interesting that the rally in EURGBP from last week's 13 week low stalled at a Marabuzo line formed by last Thursday's decline.
Gains also peaked at the trend defining 13 day moving average and formed a Doji.
These bearish factors have been confirmed by today's modest decline although we'd expect an early move beneath .8425 to confirm.