Forex Trading Signal Week #5 2010
February 21, 2010 by Kelvin
Filed under Forex Signals
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
The overall trend for the GBPJPY currency pair on the weekly chart continues to be in a downtrend with the proper stacking of the EMAs.
On the daily chart, the EMAs are flat signalling a period of consolidation.
On the hourly chart, the EMAs are stacked downwards but the gradient of the EMAs are very gentle showing poor momentum.
Forex Technical Analysis
On the weekly chart, the price is supported by the 0.5 Fibonacci level at 140.775 and the stochastic has reached the oversold zone.
On the daily chart, the price is moving in a channel and is now moving along the support level of the channel. However the stochastic is now punching down quickly.
On the hourly chart, the price is also supported by a past resistance that has turned into a support level at 141.331 and the stochastic is also oversold.
GBPJPY Weekly
GBPJPY Daily
GBPJPY Hourly
Overall Forex Analysis
For the GBPJPY pair, the price is currently at various support levels on all the 3 timeframes that I have analyzed. This gives a good BUY signal but please do not hold on to the trade for too long as the overall trend is still DOWN. Make some profit from the upward run due to the support levels and then wait for chance to SELL and ride the downward trend.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
The overall trend on the weekly chart for this currency pair is still UP as the EMAs are still stacking up. However you have to be slightly careful as the upward momentum is not that strong due to the gentle gradient of the EMAs.
As for the daily chart, the EMAs are closing up as the 100 EMA are going to cut below the higher EMAs signalling a downward movement in action.
On the hourly chart, the EMAs are stacked nicely downward with good angle and separation signalling a downtrend.
Forex Technical Analysis
On the weekly chart, the price is currently held at the Fibonacci 0.382 level and the stochastic is highly oversold. This gives a good indicator of a upward movement due to the support level at 1.34914.
On the daily chart, the price has fulfilled the Fibonacci extension and in fact it has gone slightly over to the 1.764 level. Do take note that this chart could be forming an Elliot wave but it has to be further confirmed with more movement of the price.
On the hourly chart, the stochastic has reached the overbought zone maybe looking to move down.
EURUSD Weekly
EURUSD Daily
EURUSD Hourly
Overall Forex Analysis
Based on the 0.382 Fibonacci support level on the weekly chart plus oversold stochastic, there is a high chance of an upward movement of this EURUSD pair this week.
In addition, the price has fulfilled its full Fibonacci extension and will be having a retracement and this add on to the chance of a upward movement in this pair.
However, you have to consider that the trend on both the daily and hourly chart is DOWN, therefore I will SELL if the price moves below 1.34914 and BUY when the price move above 1.38037.
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