USD/JPY Technicals – Testing 103.0 Resistance

USD/JPY Technicals – Testing 103.0 Resistance

More bearish news from Japan. Industrial production for February increased 6.9% vs. 9.9% expected on a base Y / Y M / M base is even worse, the decrease of 2.3% when planned growth 3.6%. This is not the first time that the figures of industrial production, however, were disappointing. Since the beginning of 2013, this economic measure came in below expectations 12 of 15 times. However, this did not prevent traders to believe the hype abenomics before, with Japanese stocks climbing all JPY still weakening for most of the year 2013.

Things are pretty similar in moment. Nikkei 225 is bullish today, despite the latest setback, while the USD / JPY continues to climb higher, although the most recent data once again reflects the failure of abenomics or at the very least on the market optimism on the effectiveness of the stimulus far. It is also possible that these traders are simply focused on the possibility of additional stimulus by BOJ in May or June The only problem is that the Bank of Japan have tried to distance away / refusing to commit to a stimulus confirmed top up, instead opting to use rhetorical statements on how they will intervene if necessary (perhaps be they made a playbook sheet Draghi). Therefore, there is a huge chance that the market will be disappointed in time, increasing the potential risk of deterioration.

It should also be noted that the USD / JPY has been steady in February and March, two months traditionally see the strengthening of the Yen due to the repatriation of overseas funds by Japanese . The reason prices are not can be attributed to the fact that foreign funds were seen leaving Japanese equities. This increases the risk of falling further Japanese stocks but is a mixed signal for Yen.

If abenomics ultimately fail, it is possible that the Japanese Yen will strengthen in the short term the market will resume premiums they have given USD / JPY in the last 1.5 years on the promise of BOJ Intervention. However, the fundamentals will also dictate the demand for yen will be weaker than the Japanese economy is likely to be extremely low (and perhaps even hopeless), even if abenomics fail to revive the sleeping giant. Therefore, the Convention on the Yen being a "safe haven" may need to be rewritten and you could see Yen capitulating in the worst case for the Japanese economy.

That being said, it seems that Japanese traders are still "living the dream". What this means is that the violation of 103.0 resistance is possible because the prices have just broken above the downward trend line, while the Stochastic Curve still have the space to go higher before the end the current bull cycle. However, a break above 103.75 previous swing high is less certain. However, if the market continues to believe that the additional stimulus comes BOJ, a break of resistance mentioned above for a return above 104.0 is impossible

More Links: .
AUD / USD Technical - bearish Response Seen Ahead Of 0.93 Break, RBA Rate Decision
In FX Week Asia - Kiwi on steroids
USD / JPY - Japanese retail sales strong, CPI fail Yen to move

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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AUD/USD – Support Level at 0.76 Stands Tall

AUD/USD – Support Level at 0.76 Stands Tall

AUD / USD - Tuesday, June 30, 2015

to close the last week the AUD / USD fell sharply lower below 0.77 but found strong support for long-term support level at 0.76. This level has provided strong support throughout most of this year and was named again in the last day. In recent times, he used the support of 0.76 and jumped back to 0.77 times. Throughout last week the AUD / USD eased lower and was enjoying the 0.77 level key support before selling. A few weeks ago, he made a greater leap of below 0.77 until the last three weeks, but he ran right to resistance at 0.7850 key, which played this role several times this year. A few weeks ago, he also spent most of his time fairly stable operations around the 0.7750 level while enjoying a strong support 0.77.

During the last month, the 0.7850 resistance level has played a major role and continues to put selling pressure on the AUD / USD. During this same period, it received strong support from the rock the long term support level at 0.76 which allowed him to bounce back strongly to more than 0.78 to more than one occasion. Throughout the second half of May, the Australian dollar fell sharply four-month high above 0.8150 to the level of key support at 0.76. This level was a significant level for a couple of months and has supported the Australian dollar on multiple occasions. This recent price action has been a significant reversal, because there is not so long, the AUD / USD was in a solid medium term trend upward after crossing the 0.7850 key level and reaches four month high above 0.8150.

For most of this year, the Australian dollar has traded in a wide trading range between support at 0.76 and resistance around 0.7850. Earlier this year in February this range was narrower with the highest level of support 0.77. Throughout this period he has had reasonable swings back and forth between the two key levels with very few excursions beyond the levels. The key level remains now 0.76 and it will be interesting to see how the support at this level can contain and stop the trend of sharp decline in the AUD / USD has experienced in recent weeks. The 4 hour chart below shows how constant the recent decline was, but also how significant the level of 0.76 to be able to temporarily halt the decline.

(daily chart / 4 hourly chart below)

AUD / 29 USD June at 23:50 GMT 0.7672 H: L 0.7682: 0.7672

AUD / USD technical

S3	S2	S1	R1	R2	R3
0.70	-	-	0.7850	0.8150	-

During the first hours of the Asian session on Tuesday, the Australian dollar is easing back from the level of 0.77 after surging so far in the past hours. Current range :. trading just below 0.7680

Other levels in both directions

• The following :. 0.70

• Above :. 0.7850 and 0.8150

Open Ratios position OANDA

(shows the ratio of long short positions vs held AUD / USD between all OANDA clients. the left percentage (blue) shows long positions, the percentage right (orange) shows short positions)

the long position report AUD / USD fell below 60% as the AUD / USD jumped back at 0.77 in the past. hours. The trader sentiment is in favor of long positions.

Economic Releases

• 11:30 p.m. (Monday) IN AIG Manufacturing PMI (June)
• 11:50 p.m. (Monday) JP Tankan (Q2 )
• 1:00 trust NZ NBNZ business (June)
• 1:30 AU private sector credit (May)
• 5:00 JP Construction orders (May)
• JP 5:00 starts (May)
• 8:30 UK current account (Q1)
• 8:30 UK GDP (3rd Est.) (Q1)
• 8:30 UK Index services (April)
• 9:00 EU HICP flash (June)
• 9:00 EU unemployment (May)
• 12:30 CA GDP (April)
• 13:00 US S & P Case-Shiller Home Price (April)
• 13:45 US Chicago PMI (Jun)
trust
• US Consumer 2:00 p.m. (June)

* All times are GMT release of

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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EURUSD – Enters Correction as Resistance Broken

EURUSD – Enters Correction as Resistance Broken

The euro failed to hold early gains against the dollar yesterday and extended its losing streak against the dollar four sessions. But that does not necessarily mean that any consolidation or correction has already played and the price of today's action supports it.

Of course, it is easy to say at this time, with today's prices have already removed the tops of yesterday and still trading above. But there were warning signs before that.

The candle represents indecision yesterday and while it is considered more bullish than bearish, as the bulls were unable to maintain gains, does not require confirmation. The inability of bears to create new lows today means that the confirmation was lacking. The fact that the price instead crossed the peaks of yesterday is quite optimistic.

Another good warning sign was the divergence between the price action and the MACD and Stochastic, leading to new lows being made yesterday but the move getting no traction whatsoever. In fact, the 4 hour candle was not even close below the lower front and the next attempt to break below the new lower failed.

Following another strong move higher in the pair around the US Open, the pair faces resistance around 1.0920, which coincides with low 7 July . While we can see some profit taking at this level, there is still a lot of momentum in this movement, suggesting any consolidation will be temporary. Of course, this may change, but this is the way it currently appears

As pointed out yesterday (EURUSD - Positive Start But still bearish outlook). If the pair passes above this level the next significant level of resistance would be 1.0965. This is a previous support level and 38.2% retracement of the move from 10 to 20 July peaks low in July

Further resistance could be found above here between 1.090 -. Line marabuzo emphasized yesterday - 1.1020 and with it having previously been a key area of ​​support and resistance. It is also allows tracing of 50% of the above movement.

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GBPUSD – Inverse Head and Shoulders?

GBPUSD – Inverse Head and Shoulders?

new Cable bounced off its 89 days simple moving average on Friday and has since rallied and got the week off to a good start ? Despite some weakness early in the European session

failure to break below Friday's low this morning, could be considered a bullish signal, especially if it is accompanied by a close above 1.5572 -. two thirds of the way into Thursday's candle - that would complement a morning star formation. Some consider this to be the case if we see a close more than half in it, so above 1.5557.

Even then, I find it hard to get too carried away. The pair is clearly some form of consolidation phase that is supported by the fundamental picture of currencies. Two countries, each experience with decent recoveries central banks intend to raise rates, but being held back by persistent low inflation.

Technically, there is much resistance around 1.5625 to 1.5675 with the pair failed to break through here many times in recent weeks.

short term, 1.5550 could offer some resistance with it after a key level on a number of occasions in the past. A break above here would also represent a break above support and the most recent resistance levels, which is significant.

It could also be argued that 1.5550 marks the neckline of an imperfect inverse head and shoulders with 1.5458 shoulders and head to 1.5425. If this is the case, then according to the distance thereof from the neck, it could give a conservative price projection approximately 1.5642 and 1.5675 of an aggressive, which coincides with the high mentioned earlier.

The tools above and others can be found in OANDA Forex Labs.

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AUDUSD – Triangle Holds Clue to Next Move

AUDUSD – Triangle Holds Clue to Next Move

It was a mixed week for AUDUSD which began with the pair breaking the neckline of the double bottom and looking much more optimistic, before falling below again on weak Chinese trade data and speculation that the reserve Bank of Australia may cut interest rates at the next meeting.

the result of what has been some consolidation in the pair and forming a triangle that could offer clues about his next move.

There is still an argument for future gains in the pair, despite China slows and growing speculation that the RBA may cut rates at its next meeting on November 3. First, far lower RBA rate speculation and China slowdown is nothing new.

The chart also suggests traders are undecided at this stage rather than decreasing. Price consolidates rather than fall. Wednesday's low does not break below the daily closing levels in the middle of the double bottom so depending on how you measure these formations, one could argue that it remains intact (although I prefer to use the up rather than closing it is therefore invalid now in my opinion).

While the triangle on the map is only speculative, because it is only connected by two points on each trend line, a break above suggests that traders are more optimistic again. A break below would not even say that the market is bearish again, it could simply mean we see a greater return fib retracement level of 50% or 61.8% and the formation of a flag or falling corner.

meanwhile we could see more consolidation in the pair and the next clue might come from the way he reacts to the support trend line, assuming that it reached that level.

It is interesting to see the order book OANDA shows a number of purchase orders opened around 0.7220 and 0.72, the two key levels down in this pair. There are also a growing number of open positions as the pair slightly lower which suggests that many traders who see this as a dip rather than a longer maturity movement.

in the last month, the OANDA clients were very well positioned in this pair then this could be considered a bullish signal.

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USDJPY and JPY Crosses. Storm Clouds Gathering….

USDJPY and JPY Crosses. Storm Clouds Gathering….

A quiet end to the week in Asia, but the storm clouds seem to be gathering a point technical view on JPY Crosses.

Asia certainly has a "Friday" feel about it today. G-20 this weekend, BOJ and FOMC next week. Moreover, the most important for the Kiwi, the start of the Super 18 play-offs tonight rugby, have combined to leave Asia in a wait and see mode through the markets as the week winds down.

The most interesting next week is clearly the Bank of Japan pumped with street for announcements of additional large stimulus packages and quantitative easing. The street was awash with gossip of 20 trillion Yen packages and helicopter money.

USD / JPY hourly

There may be a positioning indication USD / JPY when the "helicopter no money" title was released BOJ Kuroda yesterday that USD / JPY quickly dropped 180 points in 30 minutes. When the Nikkei newspaper suggested this morning that the package could be as high as 30 trillion JPY, USD / JPY jumped to 106.20 before drifting to its lowest around 105.80.

looking at the hourly chart the recent highs at 106.20 coincide with the moving average of 100 hours. low multiples around 105.60 / 65 and the moving average 0 hours to 105.45 form initial support with a break opening of a deeper correction.

USD / JPY Daily

The daily chart is even more interesting with USD / JPY drawing a day outside reversal yesterday. IE make a new high, then closing at a new low, and then the day before.

ichimoko the cloud base daily for the 106.55 resistance first with 104.80 double bottom support.

AUD / JPY Daily.

Looking equally spectacular to end the week. Another day outside reversal yesterday (Engulfing Bearish for the purists). The cross was unable to maintain even yesterdays low. With the first significant support cloud base at 78.15. The RBA is widely expected to cut next week. With the potential relief positions / JPY long XXX and / or BOJ disappointment, there is significant potential for a decent technical downside movement. A break of 81.00, the cloud top and 100 day moving cancels the average.

Interestingly OANDA Labs AUDJPY long position continues to be high at 63.45% and behind GBPCHF XAGUSD.

The comprehensive overview of the ratios long / short and other analyzes is available here .... https://www.oanda.com/forex- trading / analysis / open-position ratios

NZD / JPY Daily

a similar picture to the above the fall of the cloud and low recent test. Resistance 74.35 cloud base and cloud top 74.85 and the moving average of 100 days. Again, it is all about the Bank of Japan next week but if the RBA has been cut, the RBNZ is a done deal to cut the week after.

TRY / JPY weekly

Is this the worst carry trade in the world? For most of the past 18 months, the currency pair with one of the best fictitiously differential ported to the world has lost a huge 39.39%. (See blue box on the graph) With the political uncertainty in Turkey continue, it is very tactical, or the very brave!

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EUR/USD – Yellen Nominated, Euro Halts Sharp Slide

EUR/USD – Yellen Nominated, Euro Halts Sharp Slide

EUR / USD shows little movement on Thursday as the pair trades slightly above line 1 35. The pair has stabilized after sharp losses the euro Tuesday. There were many developments around the Federal Reserve Wednesday. As expected, President Obama nominated Janet Yellen to lead the Federal Reserve. In addition, the minutes of the FOMC meeting indicated that most policy makers favor tapering QE before the end of the year. In economics, French and Italian industrial production news came well below their estimates. Wednesday's highlight is the US Unemployment Claims.

The dollar was broadly higher in Wednesday trading as President Obama appointed Susan Yellen to head the Federal Reserve. Yellen take over from Bernard Bernanke, who is due to retire next year. Yellen, who is currently vice president of the Fed, became the main candidate after former Treasury Secretary Lawrence Summers withdrew his candidacy. Yellen is considered favorable to the status quo in position and supported Bernanke in three rounds of QE increases. His appointment must be confirmed by the Senate, but it should be broadly supported.

The minutes of the policy meeting in September Federal Reserve were released Wednesday. At the meeting, the Fed surprised markets by opting to stay on course with its bond purchase program, which is taking place at 85 billion $ / month. The minutes said that the decision not to start narrowing was a "close call". This has increased speculation that we could see narrowing before the end of the year. However, the monkey wrench in all this is the financial uncertainty of the judgment and the threat of the debt crisis. In addition, the Fed relies heavily on key releases such as non-farm payrolls, which were hanging off. It is unlikely that we will see any attempt to reduce QE before December at the earliest.

The American case has now entered its second week, and neither side seems to show some flexibility. Polls show that the majority of the public blame Republicans for the impasse, which is likely to increase pressure on Republicans to agree to pass the budget so that the government can resume operations. The economic damage of the judgment should not be important if the crisis is resolved soon, but the political fallout is likely to be important.

As if Congress does not have its plate full with the budget deficit and to stop a crisis in the debt ceiling could trigger a devastating financial crisis. The US has a debt of $ 16700000000000, and the country will run out of funds to pay off debt on October 17 unless Congress authorizes the raising of the debt ceiling. Otherwise, the US could potentially default on its obligations, which could cause chaos in national and international markets. There are a lot of bad blood between Republicans and Democrats on the closure, and this will undoubtedly complicate negotiations on the debt ceiling. There are signs of some progress, the talks between the parties on the possibility of a short-term increase in the debt limit, avoiding a default for now.

EUR / USD for Thursday, October 10, 2013

EUR / 10 USD October at 10:20 GMT

EUR / USD 1.3521 H: L 1.3533: 1.3488

EUR / USD technical

S3	S2	S1	R1	R2	R3
1.3335	1.3410	1.3500	1.3585	1.3649	1.3786

• EUR / USD stable trading Thursday. The pair tested the 1.35 line during the Asian session, but increased slightly.
• The pair continues resistance 1.3585. It is followed by resistance at 1.3649, which held good since the beginning of February.
• The pair is putting strong pressure on the round number of 1.35. Is this key support line hold? This is followed by support at 1.3410
• Current range :. 1.3500 to 1.3585

Other levels in both directions

• Below: 1.3500, 1.3410 , 1.3335, 1.3162 and 1.3100
• above: 1.3585, 1.3649, 1.3786, 1.3893 and 1.4000

Open positions ratio [deOANDA

report EUR / USD is unchanged in Thursday trading. This is reflected in the current movement of the pair, which trades in a narrow range. The ratio continues to have a solid majority of short positions, indicative of a strong trader through to the US dollar gained ground against the euro.

After suffering losses Wednesday, EUR / USD is struggling to stay above the 1.35 line. With the US disseminate key employment data later in the day, we could see some movement in the pair if the output does not match market expectations.

EUR / USD Fundamentals

• 6:45 French industrial production. 0.7% estimate. Actual 0.7%.
• 8:00 Monthly Bulletin of the ECB.
• 8:00 Italian industrial production. Estimate 0.6%, -0.3% real.
• 12:00 US Secretary of the Treasury Jack Lew Speaks. Lew will testify on the debt limit before the Senate Finance Committee.
• 24:30 US unemployment claims. 307K estimate.
• 1:45 p.m. US FOMC Member Bullard Speaks James.
• 2:30 p.m. US natural gas storage. 96B estimate.
• 4:20 p.m. ECB President Draghi Speaks.
• 5:01 p.m. US 30-year Bond Auction.
• 4:45 p.m. US FOMC member Daniel Tarullo Speaks.

* Key releases are highlighted in bold

* All GMT release time

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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USD/INR – Bullish But 62.4 Resistance Hangs Overhead

USD/INR – Bullish But 62.4 Resistance Hangs Overhead

Indian Rupee has not moved as expected yesterday, with prices quickly recovered above the 61.6 instead of pushing the level of support 61.35. With USD trading flat during the same period, due to the reversal of yesterday seems to be based on the weakness of the INR. However, there was no release of fundamental news during the period might have changed sense, and the only reasonable explanation would be INR bullish traders realizing that they themselves overwhelmed by shorting USD / INR following numbers PMI when the prices of stocks and risk appetite do not support such a bullish reaction.

This would mean that the next rally can be interpreted as a one-off revaluation and does not necessarily mean that the overall feeling of USD / INR. This could also explain why USD / INR dipped down again during the Asian session today, even if new basic badly needed again.

Technicals play an important role as well. It is likely that short-circuited swing traders USD / INR above the ceiling of 62.0, adding downward pressure on the top of the gentle downward bias of origin was seen Monday. This statement is strengthened when we see that prices were supported by the original descending channel that was set last Friday's decline. The bullish response resulting is huge, but we are again facing resistance once again in the form of high-swing last Friday.

Time Table

Considering that this decision is purely technical, it is hard to imagine price gain much traction above 62.2. However, stochastic readings remain optimistic for now, with the current reading level suggests that prices may even reach up to 62.4 ~ using the previous upward cycle as a reference. However, there is every chance that stochastic readings will be able to reverse from here, because there are priority with many inflection points around current levels over the last 5 trading days, which opens 61 6 as bearish target.

Weekly Chart

Weekly Chart agrees with a possible bearish decline and because prices are now testing Top channel right now. Interestingly, Top Channel is currently around 62.4 as well, adding credence to the above analysis that short-term bullish momentum may run out of steam around there. This increases the strength of the resistance of the Top channel and opens a passage to 61.35 again

Links:
USD / JPY Technicals - slightly bearish Among Still . water
NZD / USD - Post Rally employment data Lacking punch
GBP / USD - strongly support surges 1.59

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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OANDA MP – Safe Havens Prosper (Video)

OANDA MP – Safe Havens Prosper (Video)

Senior analyst Craig Erlam market gives his analysis on EURUSD, GBPUSD, USDJPY, EURGBP, EURJPY, GBPJPY, Gold Silver and DAX.

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GBP/USD Technicals – No Clear Bearish Mandate Despite 150 Pip Decline

GBP/USD Technicals – No Clear Bearish Mandate Despite 150 Pip Decline

Cable pushed sharply lower yesterday, despite early glimpses bullishness. Prices rallied above the get-go and managed to hit a high of 1.6603, but that did not stop the tumbling prices sharply to a low of 1,641 US before noon. This decrease was driven by lower production than expected UK PMI, resulting breaking 1646 support which was the previous low this week.

However, if you look closely the price action. we notice that the biggest drop zone does not occur when the PMI figures were released, but was more aggressive during the hours of the US at first, perhaps driven by risk sentiment in line with the S fall & P 500. in addition, the decline actually began at the end of the afternoon before the European session began with the resistance turned support around 1,678 already broken before the announcement. In addition, the manufacturing PMI numbers amounted to a strong 57.3, which is far from shabby although it is lower than the 58.2 expected. Although this number is bearish, it should not have triggered a decline of 150 pips.

Time Table

Does this mean that prices are now bearish? Considering that AUD / USD and EUR / USD move erratically, merchants can choose to file the share price yesterday to the same folder "irrational volatility" as the volume of the market may not have been fully restored. Moreover, even if unable to negotiate over 1,646 must be chalked as bearish confirmation, bears have failed to recover any winnings earned since Christmas, and even if we exchange all the way to 1635 while this may simply be regarded as the lowest correcting market after the bulls are overloaded. Therefore, it will be premature to claim that GBP / USD has now turned bearish and we will certainly need further confirmation of the bearish appropriate sentence.

Table Daily

daily chart shows that the price is about to break the bottom corner, with stochastic indicator showing a bearish signal. If this is correct, we could see a downward thrust that could lead us to at least 1626. But before we get too excited, it should be noted that the corner drawn here is not "clean" with the summary points of contact. Therefore, we need a clear confirmation that the price has broken the trend line, echoing the need for additional confirmation in the table in the short term

Links:
S & P 500 - New Hangover. Year Price Drop On Profit Taking
USD / JPY - rangebound to start New Year

This item is for purposes general information only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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AUD/USD – Bearish Bias Remains Despite RBA Minutes Reflecting Non-Commitment To Cut Rates

AUD/USD – Bearish Bias Remains Despite RBA Minutes Reflecting Non-Commitment To Cut Rates

Australian dollar took a small dive this morning following the release of the RBA meeting minutes. Prices reached a low of 0.9352 after the minutes revealed that further rate cuts are possible. However, further reading reveals that the threat of immediate rate cuts are not present, resulting in a strong rebound that sent prices by 30 pips at the time that followed.

This is actually not surprising, because it should be noted that this report is taken from the 5th meeting in November, where RBA ultimately decided not to bring lower rates. Therefore, it should already be a given that the minutes should not reflect openly pacifist tones. Since the minutes, RBA said that housing prices should rise further, reducing the possibilities down rates - as would be inflationary in nature, and certainly encourage more mortgage loans and therefore even higher prices. However, RBA stated its concern that the growth rates are moderate, which means they would have some form of easing measures in the future. This concept is even stronger when RBA reiterated that AUD is too high - it is clear that RBA want to do something, and now they are being prevented from reducing outright rate. It may be a long shot, but the possibility of unconventional easing methods (read: EQ). Rest, and help bring AUD lower, while helping growth - kill two birds with one stone

hourly chart

Perhaps this is due to the RBA outlook that has kept the AUD / USD rally verified. Again, it is also possible that traders are simply focused on the weak Australian economic fundamentals, resulting in an inherent bearishness that pushed AUD / USD back to around 0.937. From a purely technical perspective, prices have broken with the bottom of the Channel Rising, which weakens the upward pressure that has been in the game since November 14. The upward thrust resulting failed to rise in the channel, strengthening of bearish sentiment and opens a possible move towards 0.929.

stochastic reading is bullish if, with a bull cycle signal is at stake now, but it is unlikely that prices will be able to break much higher because we have the 0.939 resistance and the confluence with overhead low hanging channel. In addition, the curve Stoch will face "resistance" around 30.0 and 45.0 levels (based on historical intermediate trough), where it will not be surprising to see this bull cycle being cut short, with both price and curve Stoch less movement in the immediate future.

table Daily

long-term chart is bullish if we reference the rally since early September prices rebounded from the level of 0.93, with upside target as 0.952 and 0.940 as intermediate resistance. However, the long-term trend (see weekly chart) is actually bearish, and should current recovery capped below 0,952, the probability of a head and shoulders pattern increases which can potentially bring us all the way to under 0.0 levels in the coming months. Right now, however, the possibility of a fall from here is still possible that the stochastic curve is also facing its own "strength" of 35.0. If the curve Stoch 35.0 pauses coupled with a break of 0.94 prices, the probability of an upward thrust increases.

But traders should be aware that the long-term fundamentals continue to favor a stronger USD (due cone eventual QE) and a lower AUD (due RBA being forced to cut rates or by unconventional methods of easing). Therefore, even if the bullish momentum is building, traders should be alert a bearish pullbacks will be lurking and pounce when weakness in the bullish momentum is seen

Links :.
GBP / USD - Pound As little change remains above 1.61
USD / CAD - Loonie Edges Higher As Purchases of foreign securities jumps
USD / JPY - Dollar Eases but remains above 100

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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EUR/USD Technicals – Bearish Bias But Strong Bullish Support Expected

EUR/USD Technicals – Bearish Bias But Strong Bullish Support Expected

Time Table

downside pressure remains intact for EUR / USD despite Friday's rally managed to push above 1.37 momentarily. However, not only the price unable to break the round figure number, prices fell quickly under the 1369 ceiling and soft, highlighting the strong downward pressure that EUR / USD is under. This morning was brief respite for the bulls once again, but the bullish venture start was stopped by the combined resistance of 1.369 gentle resistance and the downward trend line which is in post FOMC Wednesday game (Thursday Asian hours). This still open Friday's background as possible bearish target once, and we could see a downward acceleration should push prices below 1,367 flexible support.

Table Daily

Daily chart is bearish with bullish effort Friday unable to break above the rising trend line , piling pressure even more bearish on prices. A silver lining for the bulls, however, remain as Stochastic on the daily chart is less steep than ever and can even lower the current level - where previous low was seen in mid October. Therefore, it may be premature to assume that the test rising trendline ended, even if prices do not grow below the rising trend line, we could always find significant support near 1.36 readings as stochastic will most likely be in the region oversold when it happens.

Basically, we have to wonder if EUR must be so high at the moment. The problems of Greece and other peripheral euro zone countries remain, and can raise their ugly heads in Q1 2014 similar to recent years. In addition, USD is expected to strengthen in 2014 with the Fed should start rolling tapered ball after making the first cut last Wednesday. Therefore, we need to see a strong fundamental developments for EUR / USD to foster greater heights going forward, and now it is hard to imagine that happening in the next few months. ECB may yet pull another rabbit out of his hat to solve the problems of the eurozone once and for all, but possible solutions that have been thrown around the relevant liquidity measures (another round of LTRO) and / or the introduction negative rate - the two that lead weaker EUR, not harder, making the long-term probability of EUR / USD rally even lower.

that said, it should be noted that bulls EUR / USD remains strong, prices have managed to stay afloat despite S & P downgrading EU debt to AA +. Therefore, traders should not simply any short EUR / USD at the moment and hope for the best. Again, this bullish sentiment will only work in the long term if speculators are rewarded with upbeat news finally coming through, without which bearish retaliation may end up even bigger than the rally and we can have a quick sell-off on our hands in the future. Bottomline? Stay bear patients

Links :.
Gold Technicals - Bullish Pullback Seen But Bears Firmly In Play
NZD / USD Technical - bearish below 0.82 but do not expect Landslide
FX week Europe - European Union on the naughty list S & P downgraded to AA +

This article is only for general information purposes . It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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USD/INR Technicals – Resisting USD Strength Valiantly

USD/INR Technicals – Resisting USD Strength Valiantly

The Indian Rupee has strengthened slightly against USD during the last hours, despite having reached a high of 61.55 in the first 2 hours of trade. USD / INR was initially bullish, continuing the trend observed last Friday - a common theme throughout correlated assets more risky. Prices have a significant U-turn when the Chinese economy data was released, with the stronger than expected print overall GDP for risk appetite rebounding slightly. Sensex was the biggest beneficiary of this, currently earning 0.43%, but managing to hit a maximum of 21,209, despite trading in the red as low as 21,001 at one point. This upward response is not seen in other major Asian stock indexes, where the Nikkei 225 closed 0.59% lower, the Hang Seng Index to current -0.83% to -0.53% STI. Even ASX, the Australian index should have been more sensitive to Chinese economic data closed 0.21%, with the only Sensex which managed to return the sides.

Time Table

strength Sensex helped lead Rupee stronger, and as the consideration for the shares, currency India is the only major currency that managed to hit a level higher than Friday's closing (at least for now). This shows the strength in Rupee and at the same time to demonstrate the importance of having strong market fairness for health Rupee. Since Sensex stays healthy for now, the opportunity to continue strengthening Rupee against USD today is high.

Techniques that can play a role as well. Prices rebounded off the 61.55 resistance with rally unable to overcome the rising trend line this morning - invalidating the bullish trend that was in play on Friday and opening a possible move back to 61.10. Stochastic readings are agreed, with a down cycle currently in. However, stochastics promotes a 61.3 rebound (support seen on weekly chart below) that the readings are lower by 50.0 and will likely hit oversold when 61.30 price tags.

venture trends improve, the likelihood of rupture 61.3 becomes higher, but given that the United States is to have a holiday today, it is unlikely that trends risk will be able to change significantly. As such, a wedge of 61.3 is more likely to immediate short term unless European markets managed to surprise on the upside.

Weekly Chart

weekly chart does not favor the bears well. Stochastic readings are much closer to the oversold region compared to the hourly chart, and although prices have managed to break the key support 61.3, it is unlikely that we will be able to hit 59.0 before a withdrawal occurs and a push towards the Channel Top may be more likely from a purely technical point of view. Fundamentals continue to promote the long-term uptrend should increase to USD INR while still at risk with high inflation and weak production figures. Without the strength of the Sensex, it is unlikely that rupee will be able to strengthen itself, and traders who want long Rupee now for the long term could be burned should the strength of Sensex start saying back in line with the rest of the Asian equities; it is unlikely that Sensex will be able to remain stronger than the rest of Asia long given the weak economic fundamentals of India

Links :.
GBP / USD - 1.6450 resistance Rebounds Off Again
AUD / USD - Drops to multiyear Low 0.8750 Close
EUR / USD - Drops to eight weeks Low Around 1.35

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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TRY/JPY – Is It Safe To Carry Lira Now?

TRY/JPY – Is It Safe To Carry Lira Now?

Turkish Lira has seen better days, but to be honest, the euro has seen worse days as well? . Lira recovered against most if not all major currencies since the Turkish Central Bank tried to stop the slide in Lira increasing significantly interest rates, and traders are still wondering again if the rates high carry interest worth the risk right now.

Since this is a matter of interest deferral, it makes the most sense to pair with Lira currency with the lower interest yield - Yen. In addition, compared to USD and EUR, Yen appears to be weaker than the Bank of Japan is interested in keeping Yen weakened for a long period of time. Therefore, TRY / JPY will be able to have both central banks afloat maintenance. On the other hand, the Fed remains on track to narrowing further action will lead USD, while several members of the ECB has explicitly said they want EUR less, most if not all of them are reluctant for them to cut interest rates further, resulting in the market suspect they will not actually do it, or at least not in the near future. Therefore, USD / TRY and EUR / TRY traders can find Lira have a greater chance of weakening against these two currencies.

Weekly Chart

However, while TRY / JPY is the best candidate for the carry trade, does not mean that it is a good time to do it. Looking at the price action, we can see that despite the rebound over the last 2 weeks, the downtrend remains intact. Certainly, the price bounced off of support and 43.0 Bottom Channel, but we are still below the 46.8 significant ceiling was at stake before March-April 2012, which happens to be the swing low seen on the last week of August 2013. stochastic readings are bullish definitely improves the possibility of price break 46.8, but even if bulls have successfully Top channel to watch their faces, giving them very little room for a further increase.

It should also be noted that TRY / JPY has been trading extremely bearishly in 2013, when Yen weakness was for all to see. As such, one wonders if the above led BOJ Yen weakness is any significant advantage in this case as weak Lira seems to outshine everyone.

Then, when we execute a carry trade, we are not really aiming for capital gains (eg trading TRY / JPY higher), but simply seeking interest returns. When yields are high enough interest, we can even accept certain amount of capital losses (eg TRY / JPY down) the interest earned will be able to buffer against loss. In this regard, although TRY / JPY can not look the most optimistic, but as long as prices remain within an acceptable range, it can still be worth keeping a losing position that gives the carry interest.

looking at the price action should Lira weakness continue to rule, it will not be surprising to see prices fall to 43.0 and perhaps as low as 40.25. Any less than that will represent a downward extension and we could see the extreme bearish sell-off below that level. Therefore, the classic carry traders will likely close below this price. Assuming our 40.25 is lower and we open our position today, this would amount to a loss of 11.85% (current prices TRY / JPY 45.66). If your opening position with OANDA, you will be able to enjoy bear interest of approximately 7.93% based on interest rates today (note: different brokerage houses offer a different transport interest) . Therefore, in theory, as long as TRY / JPY does not fall below 40.25 in the next 1.5 years the transport trader will remain in the dark. Is it safe to make a 1.5 year bet now? This is an answer that individual traders must meet based on their risk appetite.

Alternately, traders can wait a little longer for prices to move lower before entering therefore lower potential loss but more likely that the S / L will be triggered. Another way is to wait TRY / JPY recovered much and give additional deposit that prices will not collapse further. But it also means that your entry price will be higher, and the potential loss will also be higher. Basically, you can not have your cake and eat it - take risks is a must - but since this is a position over several years (as all should carry trade), traders will do well to make sure they will be comfortable with the potential loss before committing as anything can happen in the long term

More links:
gold Technicals - Bulls Bears Roaming Free After Banished
AUD / USD - Threatening the resistance level of 0.0 [
EUR / USD - Make a push Through resistance at 1.3650

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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TRY/JPY – Is It Safe To Carry Lira Now?

TRY/JPY – Is It Safe To Carry Lira Now?

Turkish Lira has seen better days, but to be honest, the euro has seen worse days as well? . Lira recovered against most if not all major currencies since the Turkish Central Bank tried to stop the slide in Lira increasing significantly interest rates, and traders are still wondering again if the rates high carry interest worth the risk right now.

Since this is a matter of interest deferral, it makes the most sense to pair with Lira currency with the lower interest yield - Yen. In addition, compared to USD and EUR, Yen appears to be weaker than the Bank of Japan is interested in keeping Yen weakened for a long period of time. Therefore, TRY / JPY will be able to have both central banks afloat maintenance. On the other hand, the Fed remains on track to narrowing further action will lead USD, while several members of the ECB has explicitly said they want EUR less, most if not all of them are reluctant for them to cut interest rates further, resulting in the market suspect they will not actually do it, or at least not in the near future. Therefore, USD / TRY and EUR / TRY traders can find Lira have a greater chance of weakening against these two currencies.

Weekly Chart

However, while TRY / JPY is the best candidate for the carry trade, does not mean that it is a good time to do it. Looking at the price action, we can see that despite the rebound over the last 2 weeks, the downtrend remains intact. Certainly, the price bounced off of support and 43.0 Bottom Channel, but we are still below the 46.8 significant ceiling was at stake before March-April 2012, which happens to be the swing low seen on the last week of August 2013. stochastic readings are bullish definitely improves the possibility of price break 46.8, but even if bulls have successfully Top channel to watch their faces, giving them very little room for a further increase.

It should also be noted that TRY / JPY has been trading extremely bearishly in 2013, when Yen weakness was for all to see. As such, one wonders if the above led BOJ Yen weakness is any significant advantage in this case as weak Lira seems to outshine everyone.

Then, when we execute a carry trade, we are not really aiming for capital gains (eg trading TRY / JPY higher), but simply seeking interest returns. When yields are high enough interest, we can even accept certain amount of capital losses (eg TRY / JPY down) the interest earned will be able to buffer against loss. In this regard, although TRY / JPY can not look the most optimistic, but as long as prices remain within an acceptable range, it can still be worth keeping a losing position that gives the carry interest.

looking at the price action should Lira weakness continue to rule, it will not be surprising to see prices fall to 43.0 and perhaps as low as 40.25. Any less than that will represent a downward extension and we could see the extreme bearish sell-off below that level. Therefore, the classic carry traders will likely close below this price. Assuming our 40.25 is lower and we open our position today, this would amount to a loss of 11.85% (current prices TRY / JPY 45.66). If your opening position with OANDA, you will be able to enjoy bear interest of approximately 7.93% based on interest rates today (note: different brokerage houses offer a different transport interest) . Therefore, in theory, as long as TRY / JPY does not fall below 40.25 in the next 1.5 years the transport trader will remain in the dark. Is it safe to make a 1.5 year bet now? This is an answer that individual traders must meet based on their risk appetite.

Alternately, traders can wait a little longer for prices to move lower before entering therefore lower potential loss but more likely that the S / L will be triggered. Another way is to wait TRY / JPY recovered much and give additional deposit that prices will not collapse further. But it also means that your entry price will be higher, and the potential loss will also be higher. Basically, you can not have your cake and eat it - take risks is a must - but since this is a position over several years (as all should carry trade), traders will do well to make sure they will be comfortable with the potential loss before committing as anything can happen in the long term

More links:
gold Technicals - Bulls Bears Roaming Free After Banished
AUD / USD - Threatening the resistance level of 0.0 [
EUR / USD - Make a push Through resistance at 1.3650

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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NZD/USD – Bulls Gaining Initiative Ahead of RBNZ

NZD/USD – Bulls Gaining Initiative Ahead of RBNZ

Kiwi dollar was the highest since the Asian trading session, bouncing off the 0,845 support level and as since climbed above the 0.847 resistance and the closing level perhaps even more important last Friday - back in black for this week. What is impressive is that prices have managed to push higher despite a bearish Asian session which saw the Nikkei 225 falling 2.59% and the Hang Seng Index shed 1.65%. Therefore, it is clear that the sentiment of NZD / USD is bullish at the moment, which will provide a buffer against the "risk off" appetite in European session and US later.

Time Table

This strong bullish sentiment is not surprising with RBNZ rate decision within 12 hours. The central bank of New Zealand will raise rates tomorrow, so we would struggle to find willing sellers in the meantime. However, long-term bullish outlook for NZD / USD is questionable given that risk appetite is still largely bearish. Therefore, it is still possible that the bears can just go back tomorrow after the rate decision. In addition, it is clear that the market has already taken into account a rise in rates scenario already, increasing downside risks should fail to RBNZ rate hike as planned. Although RBNZ increased 25 basis points rate, the market may be abashed, further upward limit follow through or even start selling lower on behavior "buy the rumor sell the news".

Daily Graphic

Graph Daily tips as the downward pressure that we could have a high potential in our hands if 0850 resistance remains intact despite rising interest rates. stochastic indicator is in agreement with both readings in the overbought region, with a favored down cycle going forward. Nevertheless, a bullish scenario is also possible that the curve Stoch just recently pushed a down cycle signal, again suggesting that the bullish sentiment is strong. However, this could also be explained once more that the bears are not suicidal enough to sell to the decision RBNZ rate coming soon. As such, directional traders should wait for the decision of the RBNZ and the resulting reaction before committing full play, because it will be a better indication of where we are headed in the coming days or weeks compared to the current time.

Links:
GBP / USD - Supports on the support level at 1.66
AUD / USD - greatly reduced through the key 0.0 level
EUR / USD - Far slightly facilitates resistance level at 1.39

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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EUR/USD Technicals – Short-Term Downtrend Threatened

EUR/USD Technicals – Short-Term Downtrend Threatened

A boring Monday for EUR / USD, prices were to remain within most of 1.3745 to 1,376 band and do not do much. Even a better than expected German retail sales print (1.3% vs. -0.5% expected M / M) failed to ignite any significant bullish response, with the resulting bullish reaction even smaller than the initial rally since, during the early hours of the market opening.

this lack luster response is a strong sign that the short-term sentiment is bearish, and we can see a preview of this bearishness by the way prices have started down this morning. However, do not count out the bulls - the price of EUR / USD shot higher after the initial failure, led by bullish appetite obvious risk by gains in Asian shares. Therefore, even if the market sentiment is bearish, bearish force does not exceed the impact of wider market risk trends, as European equities should remain optimistic, we should not expect sharp falls EUR / USD in the immediate future.

timetable

agreement techniques, as prices pushed above the downward trend line, of compromising the bearish momentum that has been in play last week. Similarly, the stochastic readings began to point more after bouncing off "support zone" between 20 to 30.0 level. Therefore, the probability of a new 1376 test can not be ignored and we could see even more optimistic pushed so 1376 is broken.

Table Daily

There is light bearish bias via the daily chart, however. Prices may be considered bullish our perspective starts from early November 2013 in early February 2014. However, if we look to the heights of Mars and immediate direction is actually bearish. Considering that we managed to invalidate a bullish breakout scenario, it is clear that the downward momentum is strong and we could see yet another retest of 1.37 and even lower targets if a head and shoulders pattern is formed. Prices may head over the short term (as seen on the hourly chart) but with a resistance lower the expected head trendline, the probability of a bearish rebound increases

Connections:.
USD / JPY Technical - Testing Resistance 103.0
AUD / USD Technicals - Bearish Response Seen Ahead Of 0.93 Break, RBA Rate Decision
In FX Week Europe - CB, Agencies debt and governments Gotta Work Together

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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EURUSD – Inverse Head and Shoulder Near 2015 Low?

EURUSD – Inverse Head and Shoulder Near 2015 Low?

Thursday, I set the lowest in light of March as a potential key level for EURUSD after the break in? below the double top that had formed during the previous weeks. (EURUSD - March Break Here Low Eyed Double Top)

With the almost complete pass, the pair seems to be losing momentum disadvantage and may even fall slightly below the 12- year low set in March.

most recent low on the 4 hour chart has not been met with a corresponding low on Stochastic while the MACD histogram continued to show falling disadvantage momentum. This divergence could be a sign of bullish early warning.

Meanwhile, the Euro rallied back to the highs of the day when it meets resistance. The resulting training which can now be emerging is a head and shoulders reversed, but this is far from complete at this stage.

It is also important to note that even though it forms only break of the neckline is a complete training and everything can often fall apart at this stage.

It is still early in this movement yet but the early signs suggest that the bears are facing a difficult task to push it below the March low. A look at the Commitment of Traders (COT) report, which is published weekly by the Commodity Futures Trading Commission (CFTC), can support the showing him that non-commercial traders bearish position was reduced last week.

Despite the net short positions between customers OANDA slightly lighten today they are net short than they were on Thursday suggesting they see a flexibility downwards. Unfortunately, as pointed out Thursday that's not necessarily a bearish sign, in fact, it could actually be considered more of a bullish than bearish indicator.

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EURUSD – Bearish as Evening Star Nears Completion

EURUSD – Bearish as Evening Star Nears Completion

If EURUSD was not already in the downward search of the end of fall yesterday, it is certainly start now following the rise in the dollar on the back of strong US jobs report for May.

reversal yesterday in the second half of the session left the pair looking rather bearish. Failing to break through the resistance area of ​​1.14 to 1.1535 or even good test for that matter, was an early sign that the pair was not as optimistic as he looked in a few days before.

This was a great area for the pair as there was a group of resistance levels providing a significant barrier and a break above this would have been an extremely bullish signal. Apart from containing a number of previous support and resistance, the descending trend line from 15 August and the simple moving average peaks 144 days were also involved in this area.

not only the pair fail to break through here, the result was a bearish shooting star candle with a close below the opening level. The only thing that could make this better is a close below the middle of the body of the candle Wednesday, completing the evening star formation.

As not only we, but thanks to the jobs report, the price is currently below Wednesday's opening level. As this can be maintained in the vicinity, I will be very bearish again.

In this case, the next major support would come around 1.0820, 28 May low, a break that would offer lower down following lower highs yesterday, confirming the new downtrend. Here below, from 1.0650 to 1.07 is the key.

* The tools above and many others can be found in OANDA Forex Labs.

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GBPUSD – Cable Seeking Bullish Confirmation

GBPUSD – Cable Seeking Bullish Confirmation

cable is looking much more optimistic since the break if the 233 days simple moving average in the last few weeks and now he faces a key test of its uptrend, with the new test of this key ADM.

When a medium or major resistance level is broken, a key test of the quality of the break may be how it is at the retest. If it is satisfied, then the role of this level has been changed, in which case it would be from a level of resistance to a support. This acts as a confirmation of the break and in this case gives the impression that confidence in the pair is much more optimistic.

So far, the level survived the first round, but that does not mean he will not face another. The 4 hour chart is showing no signs that the move lower is easing. Neither the MACD or Stochastic is showing a loss of momentum at this stage, although the stochastic is crossing potentially oversold territory which is a slightly bullish signal.

I want to see it followed by a movement above the oversold territory and combined with a reversal pattern in price action before becoming again short-term bullish. Further confirmation would then come from a break above the descending trendline resistance around 1.5750.

If we see a daily close below the 233-DMA, it would not necessarily confirm that the uptrend in the cable is finished, by any stretch of imagination. There is still significant support just below 1.5550 around here -. Historically a key support level and resistance and 50% retracement of the move from lower to higher June

Until this is broken, the pair remains in a clear trend medium-term bullish flag formation and remains valid, which is a bullish continuation pattern.

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Read More : GBPUSD – Cable Seeking Bullish Confirmation

GBPUSD – Cable Seeking Bullish Confirmation

GBPUSD – Cable Seeking Bullish Confirmation

cable is looking much more optimistic since the break if the 233 days simple moving average in the last few weeks and now he faces a key test of its uptrend, with the new test of this key ADM.

When a medium or major resistance level is broken, a key test of the quality of the break may be how it is at the retest. If it is satisfied, then the role of this level has been changed, in which case it would be from a level of resistance to a support. This acts as a confirmation of the break and in this case gives the impression that confidence in the pair is much more optimistic.

So far, the level survived the first round, but that does not mean he will not face another. The 4 hour chart is showing no signs that the move lower is easing. Neither the MACD or Stochastic is showing a loss of momentum at this stage, although the stochastic is crossing potentially oversold territory which is a slightly bullish signal.

I want to see it followed by a movement above the oversold territory and combined with a reversal pattern in price action before becoming again short-term bullish. Further confirmation would then come from a break above the descending trendline resistance around 1.5750.

If we see a daily close below the 233-DMA, it would not necessarily confirm that the uptrend in the cable is finished, by any stretch of imagination. There is still significant support just below 1.5550 around here -. Historically a key support level and resistance and 50% retracement of the move from lower to higher June

Until this is broken, the pair remains in a clear trend medium-term bullish flag formation and remains valid, which is a bullish continuation pattern.

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