Friday, January 27, 2012

Forex Trading Signal Week #37 2011

November 14, 2011 by  
Filed under Forex Signals

If you have read my forex trading signal last week, you should have profited from part of the 236 pips down move last week.

The price indeed break below the trend channel with a valid breakout and the price moved down sharply.

Whenever you see a trend channel forming after a sharp movement, it is a sign of relieving the pressure and therefore is a continuation pattern. This is exactly how I predict the down move last week with such accuracy and I hope that you guys have learned something from this analysis.

Below is the analysis for this week

Forex Trading Signal For EURUSD

Forex Trend Analysis

  • Weekly Chart: Flat
  • Daily Chart: Weak Bullish
  • 4 Hourly Chart: Weak Bearish
  • Hourly Chart: Strong Bearish

As a whole, the trend remains bearish despite the strong upmove of the price at the end of last week.

Forex Technical Analysis

4 Hourly Chart
So what actually created the upmove last week? If you take a look at this time frame, you can see that there is a positive macd divergence occurring before the upmove.

However the price has now hit the past support which has turned into resistance. At the same time, there is a formation of a railway track which is a reversal candlestick pattern.

Overall Forex Analysis
I will try to go SHORT for this pair as the price is being held by a strong resistance and there is a formation of the railway track.

However I will not go SHORT for too long as there is also a high chance of the upmove due to the strong upmove last week.

If you are interested to learn more about how I do my technical analysis everyday, you can take a look at this book that I have written. As for how to tell whether there is a valid breakout, you can take a look at this book as well.

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