Forex Trading Signals Week #10
October 19, 2009 by Kelvin
Filed under Forex Signals
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
Weekly Chart: The EMAs continues to be stacking in a downward manner with good angle and separation
Daily Chart: The EMAs for the daily chart are also stacking downward indicating a downtrend
Forex Technical Analysis
Weekly Chart: The stochastic is punching up while the MACD histogram looks like going to flip to the upside. However the price is currently holding at the 0.618 fibonacci levels of 148.887 and if it manages to break through the point, it will hold at the 0.5 fibonacci level at 151.601.
Daily Chart: After the breakout of the trend wall at 149.166 on the 24 September 2009, the price is now back to the trend wall to testing the trend line. If it is repelled by the trend wall, it will continue the wave 5 downward movement and if it manages to break up the trend wall, the trend wall will become invalid and you can take the 0.5 fibonacci level at the weekly chart as the resistance level
Overall Forex Analysis
Additional Information: After a hugh upward movement at the hourly chart, there seems to be forming a MACD negative divergence in the price. Personally, I see that as a MACD neutralisation instead of a divergence. If you take a look at the hourly chart now, you will see that the price is actually moving sideway and is in fact waiting for MACD to go to neutralisation level and then continue to punch up again.
The long term trend will be a down trend but for this week, you may have to go LONG if the price break through 149.294 and go SHORT if the price break down 147.668.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
Weekly Chart: The EMAs are starting to align in a upside direction
Daily Chart: The EMAs are stacked properly with good angle and separation on the upside
Forex Technical Analysis
Weekly Chart: The stochastic has reached the overbought zone and there is a MACD histogram negative divergence form. This usually signify that there is a downward movement soon. However, as I observe the chart, I am seeing the formation of the Elliot wave 3 which may be causing the upward movement of the EURUSD pair
Daily Chart: The stochastic has punched down and there is also a MACD negative divergence form therefore indicating a downward movement
Overall Forex Analysis
I will go SHORT for this pair as there are negative divergence form on both the Weekly and Daily chart.
All the best to your trade and hope you can profit from this information!
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