Forex Trading Signal Week #16 2010
May 11, 2010 by Kelvin
Filed under Forex Signals
If you think that the strong down movement that you have seen in the GBPJPY last week is simply due to the Greece financial problem, you are in for a surprise. What actually happen is a combination of fundamental together with technical that cause the GBPJPY to spiral down so badly.
If you remember that I have warned you about the symmetrical triangle forming on the 4 hour chart in last week forex signals. There is a successful breakout last week and this is also one of the factors that push the market down last week.
Those of you who know how to do price projection will know that the price moves down more than the projected value. This is because of the reaction of traders to the fundamental news last week as well.
Let us go through the analysis for this week:
1) Forex Trading Signal For GBPJPY
- Weekly Chart – DOWN
- Daily Chart – Mix
- 4 Hourly Chart – Flat
- Hourly Chart – DOWN
As a whole, the trend is DOWN
Weekly Chart
The market has breached the support trend line and is now resisted by it. However the price is also supported by the 0.382 Fibonacci level at 135.332.
From the MACD, it can be seen that the buying force has weaken and the stochastic is also pointing down after reaching the overbought zone.
GBPJPY Weekly
4 Hourly Chart
After the successful breakout last week, the price has moved down by about 1300 pips and has since retrace backed about 100 pips.
From the MACD histogram, it can be seen that the buying strength is weakening and looks like it will continue its downtrend.
GBPJPY 4 Hourly
Overall Forex Analysis
As a whole, I will look to go for SHORT trade this week which is in compliance to the trend for the week.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
- Weekly Chart – Flat
- Daily Chart – DOWN
- 4 Hourly Chart – DOWN
- Hourly Chart – DOWN
From the above 4 time frames, you can see that the overall trend for EURUSD is down for the week.
Forex Technical Analysis
Weekly Chart
After the market manages to break below the 0.382 Fibonacci support level after the 8th attempts, the price moves down rapidly last week. Since it has broken below the 0.382 level, it is likely that the trend is now down.
EURUSD Weekly
Daily Chart
On the daily chart, after the price has managed to break below the R1 pivot support at 1.32196, the price move down about 400 pips in total last week. Due to the strong movement, it could come with a upward retracement this week. In addition, the stochastic has reached the oversold zone and is now pointing up.
EURUSD Daily
4 Hourly Chart
On the 4 hourly chart, there is nothing much to observe but there is a clear down trend in action. Therefore it can be a good opportunity for those of you who want to ride the trend.
EURUSD 4 Hourly
Overall Forex Analysis
I will go for trend trading this week as there is a strong downtrend in action.
Other Related Posts:
