Channels for the eyes

The EURUSD chart I posted here is still valid. The downward channel has four touches on the support band which is alarming for shorts. It would pay to be cautious with shorts here also considering the oversold RSI. If it hits and bounces on the red "still-hypothetical channel" support, I expect a very strong rally.

As the UK finance based "paper" economy is crumbling, it shows on the GBPUSD. The 5 years support was broken 4 weeks ago and I showed what happened after that here. I was too optimistic to think that the green support would give in for a bounce to touch the upper wall. Instead, it continued its free fall to confirm a very solid double-decker channel. It looks very oversold and may bounce here. It would be a fantastic short when/if it touches the upper band.

Since my last post here, SUGAR has broken its first descending triangle and rallied quite nicely from 18 to 18.8. It may correct to touch or get close to the red support it just broke which would make a perfect entry point for a long. If futures or CFDs aren't for you, you can use ETFs with positions tailored for your account size and stress tolerance. Ultimately, I still expect it to break the green and orange supports. It may even disregard them because they are not confirmed supports without the third touch&bounces. The target is in the 22 area to break free. After that, I would just ride the wave until it gives me some clear signals of turning back down. This chart is one of my favorites in terms of depressed and squeezed price ranges. 

COFFEE, since this post, hit the  green channel and bounced back without making a new lower low. It is right back at the channel resistance which means it is quite eager to break it. The other option is to break the red support which would ruin this nice picture.

NATGAS long looks good since my last post here. It doesn't show any indication of a correction back to the red uptrend support. This is very encouraging to think that it may break the blue support at the 4th touch which would take the prices to around $5.00. I have been reading that many exploration companies are going bust at these prices. On the other hand, power and transportation industries in the US are switching to natural gas at a rapid rate. Soon, perhaps already happening, the supply-demand pendulum will swing to the short supply side which supports the long trade. Some call it the trade of the century. I wouldn't go that far but it certainly is promising. Hope it helps.