Murray Math Lines 26.08.2011 (USD/CAD, AUD/JPY, CAD/JPY)

Analysis for August 26^th, 2011

USD/CAD

Yesterday the market decided to test the “triangle” pattern. The price rebounded from its bottom line, thus indicating the importance of this pattern. Taking into consideration that this movement is taking place in an overbought zone, we can expect the price to start growing again to the +2/8 level. If this level is broken, the lines will be redrawn.



The price wasn’t able to fix itself below H4 Super Trend’s line, the market rebounded from the 1/8 level and went back to the previous levels. The forecast remains bullish with the first target at the 8/8 level. If the market breaks H1 Super Trend’s line and the indicators’ lines form “Bullish Cross”, the price will start growing.

AUD/JPY

In case of the AUD/JPY currency pair the correction continues, it reached the 4/8 level and the daily Super Trend’s line. We can expect the price to rebound from these levels, and after that down-trend may continue. The target of the future descending movement is the 0/8 level.



At the H1 chart the price has rebounded from the 8/8 level. If the market breaks Super Trends’ lines and they form “Bearish Cross”, we’ll have a strong signal to start selling the pair. The first target here is the 0/8 level, but taking into consideration the situation at the major charts, we can expect the price to break it.

CAD/JPY

The CAD/JPY currency pair has been consolidating for several weeks, and this movement is supported by the daily Super Trend. If the price rebounds from it, down-trend will be able to start moving to the 0/8 level.



At the H1 chart we can see the formation of flat pattern in an oversold zone, which usually is a signal of the continuation of the current trend. During the next several days we can expect the price to break the -2/8 level. After that the lines will be redrawn.