Forex Trading Signal Week #18 2010
May 24, 2010 by Kelvin
Filed under Forex Signals
I hope everything is well for you so far and below is the forex trading signals for this week.
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
- Weekly: Strong Bearish
- Daily: Weak Bearish
- 4 Hourly: Strong Bearish
- Hourly: Strong Bearish
From the trend analysis on the 4 time frames, the outlook for GBPJPY this week is bearish.
Forex Technical Analysis
Weekly Chart
On the weekly chart, you can see that the price is now ranging in a trend channel and is in fact close to the bottom of the channel. At the same time, you can see that the price is now being supported by Fibonacci 0.236 level which is a critical level at the moment.
GBPJPY Weekly
As long as the price manages to break below the 0.236 level at 129.343, the price will most likely continue to move down until it hits another major support level at 119.115 which is a major swing low established on the 17th January 2009.
Do take note that the stochastic is approaching the oversold zone and the CCI is starting to curve up. Therefore there is also a chance that the price will continue to move within the channel as it is repelled upward.
4 Hour Chart:
On the 4 hour chart, the price has formed a positive divergence on the MACD as well as the CCI. Together with the support level at the weekly chart, there is a high chance that the price may reverse its position and move up.
GBPJPY 4Hourly
Hourly Chart:
There is a formation of an ascending triangle on this time frame. The price has in fact tested the 130.532 resistance level for about 8 times and failed and the stochastic at this moment is overbought.
GBPJPY Hourly
Overall Forex Analysis
Although the overall trend for this week is bearish, the formation of positive divergence on the 4 hourly chart should not be overlooked.
If the price breaks above the trend line on the 4 hour chart, it will continue to move up to at least 132.800 which is the next resistance level. However if the price break below the 129.343 level, there is a high chance that it will continue to move down until 127.000.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
- Weekly: Weak Bullish
- Daily: Weak Bearish
- 4 Hourly: Strong Bearish
- Hourly: Strong Bearish
The overall trend for the EURUSD pair is bearish.
Forex Technical Analysis
Weekly Chart
The price is currently held by a major support level at 1.23384. The stochastic has reached the oversold zone and is curving up. However the MACD is showing good angle and separation between the MACD line and its trigger line which is a strong sign of trend.
EURUSD Weekly
Daily Chart
Besides the major support on the weekly chart, the price is also held by a pivot S1 at 1.22429 and is now resisted by a pivot level. However the MACD histogram has flipped up showing that the buyer has increased and seller has decreased.
4 Hour Chart
In contrast the MACD on this time frame shows the weakening of the buyer as the MACD histogram is shortening and looking to flipped down.
EURUSD 4 Hour
Overall Forex Analysis
I will continue to sell the rally in a downtrend for this currency pair until the hourly chart changes to bullish trend.
What do you think of these two currency pair? If you have any finding or analysis that I did not mention above, please give your comment so that other traders reading this blog can benefit from it.
Other Related Posts:
