Although the double top neckline is being held, the price actually forms a trend channel after that and upon breaking the channel, the price moves down for about 400 pips.
1) Forex Trading Signal For EURUSD
Forex Trend Analysis
4 Hourly Chart: Strong BullishThe overall trend for this pair is still Up despite the big drop in price.
Forex Technical Analysis
Hourly Chart
After the double top formation highlighted by me last week in my analysis, the price is being supported by the neckline and then forms a trend channel.
In fact, there is a fakeout in the trend channel which leads people to enter a LONG position. For those of you who have purchased my forex trend line strategy book, you will be able to tell the fake out and should not have entered the trade.
After the fakeout, the price actually move down and break through the support trend line with a valid breakout signal.
EURUSD HourlyOverall Forex Analysis
I will advice you not to take any trade in this pair as the price is too volatile and therefore the retracement will be pretty wild at time. Wait for the price to stabilise before looking for another trade.
2) Forex Trading Signal For GBPJPY
Forex Trend Analysis
The trend for this pair is Down for the week.
Forex Technical Analysis
Hourly Chart
The price might reverse up this week as there is a formation of a MACD positive divergence. As you can see from the picture, the price makes a higher high and a higher low which is a sign of upward movement.
GBPJPY HourlyOverall Forex Analysis
The price might move up this week, however it does not constitute a reversal yet as it might be just a retracement on the higher time frame.
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