Forex Trading Signal Week #21 2010
June 16, 2010 by Kelvin
Filed under Forex Signals
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
- Weekly Chart: Strong Bearish
- Daily Chart: Strong Bearish
- 4 Hourly Chart: Weak Bearish
- Hourly Chart: Weak Bullish
From the above trend analysis, it looks like the overall trend for this GBPJPY is DOWN and the weak bullish on the hourly chart could be a sign of retracement for the downtrend.
Forex Technical Analysis
Weekly Chart
Similar to the previous week analysis, the price is still moving within a trend channel waiting for the breakout to occur.
GBPJPY Weekly
Daily Chart
On the daily chart, the price has broken out of the symmetrical triangle but it will be tested by a Fibonacci 0.500 resistance at 136.339 before it becomes a valid breakout.
GBPJPY Daily
4 Hourly Chart
On this chart, the price has broken out of a mini trend channel and then move into another trend channel. What is so special is that the 2 trend channel is formed within a bigger trend channel.
GBPJPY 4 Hourly
Do take note of 2 strong resistance levels at 136.153 and 139.463.
Overall Forex Analysis
I will look to sell the rally in a downtrend. Therefore I will be looking for opportunity to go SHORT and the best opportunity will be to wait for the trend channel breakout on the 4 hourly chart. If you are looking for a shorter term trade, you can lookout for the upward triangle breakout on the daily chart to be validate before entering a trade.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
- Weekly Chart: Weak Bullish
- Daily Chart: Weak Bearish
- 4 Hourly Chart: Strong Bearish
- Hourly Chart: Weak Bearish
From the above analysis, the trend for the EURUSD is going through the transition from bullish to bearish.
Forex Technical Analysis
Weekly Chart
The price has just been repelled by a major support at 1.18801. One tip to share with you is that the first test for a major support will usually be unsuccessful and it is usually at the third or fourth attempts that the breakout will occur.
EURUSD Weekly
Daily Chart
At the same time where the price hits the major support on the weekly chart, it is also testing the Pivot S1 point which makes it a double support zone. At the time of writing, the price is now resisted by Pivot R2 resistance and the stochastic is going into the overbought zone.
EURUSD Daily
Hourly Chart
On the hourly chart, the price has created a negative divergence on the MACD technical indicator which is a sign of an incoming downward movement.
EURUSD Hourly
Overall Forex Analysis
I will look to go SHORT for this pair as it will attempt to retest the major support on the weekly chart which is coincidence with the MACD negative divergence on the hourly chart.
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