Forex Trading Signal Week #24 2010
July 12, 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: Flat
- Hourly Chart: Weak Bullish
As a whole, the trend for this currency pair is flat although the higher time frames are showing strong bearish signals. This is because of the indecision of the traders after the symmetrical triangle breakout which causes this consolidation on the lower time frame.
Forex Technical Analysis
Weekly Chart
Pretty similar to last week, the price is still moving within the trend channel and nothing much is there to take note for this time frame.
GBPJPY Weekly
Daily Chart
After the triangle breakout on the 30th June 2010, the price did move down but is supported by the Fibonacci 0.764 level at 131.355. In fact, this level was tested twice and the price moved up and this is the main cause behind the consolidation on the 4 hourly and hourly charts.
GBPJPY Daily
4 Hourly Chart
After the price breakout of the trend channel on the 21 June 2010, the price immediately forms another trend channel. The price stays within the trend channel until another breakout occurs on the 8 July 2010 which is invalidated with the formation of a candlestick below the trend line.
GBPJPY 4 Hourly
Overall Forex Analysis
At the time of writing, there is a formation of negative divergence on the CCI for the 4 hourly chart and the stochastic is overbought. These are signs of a downward movement. Therefore I will wait for the price to break below the 131.355 support level before enter a trade.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
- Weekly: Mix
- Daily: Strong Bearish
- 4 Hourly: Strong Bearish
- Hourly: Strong Bullish
As a whole, the longer time frame is showing sign of strong bearish for the EURUSD. The strong bullish signal on the hourly chart could be simply the retracement on the higher time frame.
Forex Technical Analysis
Weekly Chart
The EURUSD is moving toward a medium trend line and is going to test it for the first time after the price has broken below it on the 8 May 2010.
EURUSD Weekly
4 Hourly Chart
On this time frame, you will see the power of past swing highs holding the current price movement.
EURUSD 4 Hourly
Overall Forex Analysis
From the weekly, daily, 4 hourly and hourly charts, I can see the incoming downward movement of EURUSD. I will look for opportunity to go SHORT for this pair.
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