Forex Trading Signal Week #16
December 8, 2009 by Kelvin
Filed under Forex Signals
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
Weekly Chart: The exponential moving averages are continuing to stack in a downward manner indicating a downtrend in action.
Daily Chart: In this daily chart, the EMAs are all stacked nicely in a downward manner also indicating a downtrend.
Hourly Chart: However in this hourly chart, the EMAs are now curving up ending the nice downward stacking of the EMAs.
Weekly Chart: The price is currency being supported by a 0.764 Fibonacci level at 145.086. At the time of writing this post, a new support line at 139.051 is formed. The MACD are flat with no indication of any trend and the stochastic are moving up toward the 50 mark.
Daily Chart: The price in this chart is being resisted by a 0.618 Fibonacci level at 148.664. The MACD line and its trigger line are below the waterline but a bullish crossover has occurred at the time of this writing. The stochastic has reached the overbought zone and is now curving down with a crossover of the 2 lines.
Hourly Chart: The price for the hourly chart is supported by a 0.382 Fibonacci level at 146.937 and the MACD seems to be neutralized and is looking for a upward movement. The stochastic for this pair is oversold and is likely to move up.
Overall Forex Analysis
I will go for LONG if the price break through 148.661 and I will take profit at 151.540 which is a strong resistance level. I will go for SHORT if the price breaks below 146.880 and take profit at 145.440 which is a strong support level.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
Weekly Chart: The EMAs for the weekly is the same as the previous week analysis. The EMAs are all stacked upward but the angle remains to be flat.
Daily Chart: The EMAs for the daily chart are all stacked up with good angle and separation signalling a uptrend.
Hourly Chart: The EMAs are started to bend down and the upward stacking are gone.
Forex Technical Analysis
Weekly Chart: There is a resistance at 1.50476 and it has been tested for about 5 times at the time of writing this post. The MACD histogram has finally flipped down and the stochastic is now below the 50 mark.
Daily Chart: The price has breakout from the 1.48775 support line and has been confirmed by the MACD flipping down. The stochastic has reached the oversold zone and looks set to move up to form a retest of the support line that is breached.
Hourly Chart: 2 large movement has causes the MACD to move down sharply. Although it looks like a positive divergence is formed but I think that it is actually neutralization in progress which means that the price may continue to move down.
Overall Forex Analysis
I will go LONG if the price goes above the 1.49 mark which means that the retest of the line is not successful resulting in a fake out. If the price goes below 1.47, I will go SHORT as it means that the retest shows that the breakout is a real one.
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