Forex Trading Signal Week #14

1) Forex Trading Signals For GBP/JPY

Forex Trend Analysis

Weekly Chart: The EMAs in the weekly chart are properly stacked down in an orderly manner. This indicates a long term downtrend in action.

Daily Chart: The EMAs in this daily chart also signify a downtrend as the EMAs are stacked down as well.

Hourly Chart: The EMAs in the hourly chart are also stacked nicely downward indicating a downtrend.

Forex Technical Analysis

Weekly Chart: The price has bounced off the trend line after retesting it confirming an incoming down trend. The stocashtic has punched down the 50 mark and the SMI is doing a downward crossover.

Daily Chart: The price is currently confine by the 0.764 and 0.618 fibonacci levels. The stochastic has enter the oversold zone while the MACD has punched down the water line.

Hourly Chart: There is a positive MACD divergence on this time frame and the MACD lines are pointing up with good angle and separation. The stochastic has curve down after touching the overbought zone.

GBPJPY Weekly

GBPJPY Daily

GBPJPY Hourly

Overall Forex Analysis

The overall trend for the GBPJPY is down. However since there is a positive MACD divergence in the hourly chart, you should be extremely careful when implementing your trade. I will go SHORT but I will wait till the positive divergence effect is neutralised.

If the price goes below 145.795, I will enter SHORT and if the price goes above 152.126, I will go LONG and hold for some time as the movement might be quite big.

2) Forex Trading Signals For EUR/USD

Forex Trend Analysis

Weekly Chart: The EMAs for the weekly chart of the EUR/USD are stacked upwards with increasing angle and separation.

Daily Chart: The EMAs has completely stacked upward but the angle and separation of the smaller EMAs are not that distinct yet.

Hourly Chart: The EMAs for the hourly chart are pretty flat which is a signal of consolidation.

Forex Technical Analysis

Weekly Chart: The MACD are showing negative divergence but the stochastic is now cutting up. A resistance level has been formed at the 1.50586 level as there are three candle that is repelled by it.

Daily Chart: The MACD for the EUR/USD pairs are pretty flat since 24 June 2009 and the stochastic is currently at the 50 mark cutting upwards.

Hourly Chart: The MACD has rise pretty high but the histogram is getting shorter signaling the lost of momentum. The stochastic is above the 50 mark and it has just point up at the time of my writing this post.

EURUSD Weekly

EURUSD Daily

EURUSD Hourly

Overall Forex Analysis

The outlook for this pair is up from the trend analysis but you have to be aware of the negative divergence in teh weekly chart. If the price manage to cut above the 1.50586 level, it is a good time to go LONG.