Forex Trading Signals Week #18
December 28, 2009 by Kelvin
Filed under Forex Signals
1) Forex Trading Signals For GBPJPY
Forex Trend Analysis
The overall trend for the weekly and daily chart for the GBPJPY currency pair are down with its EMAs stacked nicely downwards with good angle and separation. However the trend on the hourly chart demonstrates an uptrend.
On the weekly chart, the price is currently moving within a symmetrical triangle formation. Most of the time, a symmetrical triangle that occurs after a downward movement will continue to move in a downtrend. As for the stochastic, it is above the 50 mark and looks like it is going to punch downward.
On the daily chart, the price is also moving within a symmetrical triangle and it is close to its apex. Therefore you should be alert as breakout is going to occur and breakout that occurs on an apex is usually very powerful. The stochastic on the daily chart is close to the overbought zone.
On the hourly chart, the price is resisted by a Fibonacci level 0.382 at 146.368. From the candlestick pattern, the bear seems to be pretty strong as it produces several candles with long upward shadows.
GBPJPY Weekly
GBPJPY Daily
GBPJPY Hourly
Overall Forex Analysis
I will go SHORT when a breakout occur and breached the 145.300 level. However be careful when you see a upward breakout as it may be a fake out. Therefore check your MACD for confirmation of valid breakout.
2) Forex Trading Signals for EURUSD
Forex Trend Analysis
The trend on the weekly chart for the EURUSD pair is up but the strength is still weak. On the daily chart, the longest period EMA is starting to curve down slightly closing the angle and separation of the EMAs but the EMAs are still stacking upward. Similar to the GBPJPY pair, the trend on the hourly chart seems to differ from the daily and weekly charts.
Forex Technical Analysis
After the downward breakout below the 145.000 support level, the price has move down about 250 pips. On the weekly chart, the stochastic has reached the oversold zone while the MACD continues to move down.
On the daily chart, the price has breakout of the trend channel and has hit a support at 1.42169. At the same time, the stochastic has reached oversold zone and is punching up. You will be able to see a bullish engulfing candle at the support level signifying a retracement.
On the hourly chart, the stochastic is also at the oversold zone and looks set to cut upwards. At the same time, the price is supported by a Fibonacci level at 1.43585.
EURUSD Weekly
EURUSD Daily
EUDUSD Hourly
Overall Forex Analysis
It looks like the price may move up to retest the trend line at 145.000 at the weekly chart. Therefore I will go LONG if the price break the 1.44023 resistance level and I will go SHORT if the price break below the 1.42169 support level on the daily chart.
If you are interested in knowing more about how to trade moving averages, you can read them in my blog.
Other Related Posts:
