Forex Trading Signal Week #3 2010
January 26, 2010 by Kelvin
Filed under Forex Signals
1) Forex Trading Signal for GBPJPY
Forex Trend Analysis
Similar to the previous few weeks, the weekly chart of the GBPJPY pair demonstrates a downtrend as the exponential moving averages are all stacked nicely downward. As for the daily chart, it appears to be in consolidation at the moment as the EMAs are all flat and cluster together. As for the hourly chart, the EMAs are starting to stacked downward after a period of consolidation. As a whole, the long term trend seems to be DOWN.
Forex Technical Analysis
On the weekly chart, the price is currently held by the support trend line which is coinciding with the Fibonacci 0.618 level at 145.860. However the stochastic is now punching down to less than 50 marks.
On the daily chart, the price had broken through a symmetrical triangle and is now retracing to retest the resistance line. The resistance line in this case also seems to be coinciding with the 0.618 Fib level at 148.587. The stochastic for the daily chart is closed to the oversold zone and is looking to punch up.
On the hourly chart, the price has just broken up the 0.5 Fibonacci level at 147.017 but it is not sure if it can hold. The stochastic for this time frame has reached overbought and is looking to punch down.
GBPJPY Weekly
GBPJPY Daily
GBPJPY Hourly
Overall Forex Analysis
I will wait for the price on the daily chart to reach the 148.587 which is the 0.618 fib level as well as the resistance line of the symmetrical triangle. If it manages to break up further, I will go LONG and if it repels, it means that the forex breakout is valid and I will go SHORT.
From the price projection done on the symmetrical triangle, you can set your limit at 145.187, 139.692 and lastly 135.311.
2) Forex Trading Signal for EURUSD
The exponential moving averages on the weekly chart are all stacked upward but similar to the previous few week, the strength of the uptrend is not strong due to the gentle gradient.
The trend of this pair on the daily chart is still up but the 100 EMA is starting to curve down a little.
As for the hourly chart, the EMAs are stacked nicely downward with good angle and separation signalling a downtrend.
On the weekly chart, the price is currently held by the support level of the 0.5 Fibonacci level at 1.40275 as the stochastic has reached oversold and is now moving up.
On the daily chart, the price of the EURUSD has been pushed down by a Fibonacci 0.618 level at 1.45703 and may be heading for the 1.618 level at 1.36540. However the stochastic of this pair has reached oversold and is now punching up.
On the hourly chart, the price is held by the 0.618 Fibonacci level at 1.41753 and it looks like it is the fourth wave of an Elliot wave pattern. If the price continues to move down, it is actually forming the 5th wave which is the final down wave for this pattern.
EURUSD Weekly
EURUSD Daily
EURUSD Hourly
Overall Forex Analysis
I will go SHORT if the price move below the 1.41192 level as it will be forming the fifth wave of the Elliot wave pattern which is usually very accurate and I will take profit at 1.40284, 1.38703 and finally 1.37621.
*I am really very happy to be able to capture a picture of an Elliot wave and show you how to trade using it. There are some traders out there who claim that Elliot wave do not work at all, however I have been using it quite effectively for some time now. However, I am not saying that this Elliot wave on the EURUSD pair will move in the fifth wave immediately and I strongly discourage you from entering numerous lots as the fifth wave sometime happen after a period of consolidation and it may wipe you out.
So stay alert and look for signals to enter your trade.
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