Forex Trading Signal Week #20 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

As a whole, the trend for this week is DOWN.

Forex Technical Analysis

Hourly Chart
There is a formation of a rising wedge which is a sign of bearishness. From the formation, it looks like the the price will collapse downward. However you have to take note of the R2 Daily Pivot which is a major support for the price.

Hourly Chart EURUSD

4 Hourly Chart
The price is approaching a major resistance which is in confluence with the 200 EMA.

4 Hourly Chart EURUSD

Overall Forex Analysis
I will look to go SHORT if the price breaks below the wedge and R2 Daily Pivot.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend for this pair is UP.

Forex Technical Analysis

Hourly Chart
The price has broken the symmetrical triangle and is now testing the new support after the breakout.

Hourly Chart GBPJPY

4 Hourly Chart
On this time frame, you can see that the price is being held by the 200EMA support.

4 Hourly Chart GBPJPY

Overall Forex Analysis
I will wait for the price to break through the 200 EMA before entering any long trade.

Other

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Forex Trading Signal Week #12 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

4 Hourly Chart: Strong Bullish

As a whole, the trend for EURUSD is UP for this week.

Forex Technical Analysis

Daily Chart
The price looks like it is being resisted by the major resistance level and moved back down. The MACD negative divergence formed on this chart still holds as the MACD makes lower high while the market makes higher high. However you have to be careful of the strong support level at 1.40509.

EURUSD Daily Chart

4 Hour Chart
In this chart, it seems to me that the price is forming a 123 reversal pattern. If the price manages to break below the major support which is pretty close to the neckline of the reversal formation, the price looks like it will reverse.

EURUSD 4 Hour

Overall Forex Analysis
I will look to go SHORT if the price manages to break below the 1.40509 level as the price will most probably reverse.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend for GBPJPY is DOWN for this week.

Forex Technical Analysis

Daily Chart
The price is being resisted by the 200 EMA and is moving down.

GBPJPY Daily

4 Hour Chart
The price is being resisted by the monthly S1 pivot and it looks like it has attempted to break above it for 6 consecutive times.

GBPJPY 4 Hourly

Overall Forex Analysis
I will look to go SHORT for this pair but I will be cautious when it reaches 129.401 which is a major support level.

Other

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Forex Trading Signal Week #18 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

The overall trend remains bullish as the higher time frame is still pretty bullish. As for the bearish sentiment on the lower time frame, it could be just a retracement on the higher time frame.

Forex Technical Analysis

4 Hour Chart
The price continues its strong downmove on this time frame and the price is currently supported by the M1 Daily pivot.

Hourly Chart
The price has retraced to the 0.382 Fibonacci level and is now moving its extension. The minimum extension will be to 1.272 at 1.40434.

EURUSD Hourly

Overall Forex Analysis
The price will continue its strong downmove as there are still no sign of reversal. Maybe you can go for selling the rally in this kind of situation.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend for this pair is DOWN for the week.

Forex Technical Analysis

4 Hourly Chart
The price retraces to the 0.500 Fibonacci level which is in this case the same level as the 200 EMA. With this confluence of event, the price forms a railway track which is a sign of price reversal.

The price has moved past the most recent swing low and look set to move to at least the 1.272 extension at 129.249

GBPJPY 4Hourly

Overall Forex Analysis
I will look to go SHORT for this pair until a reversal pattern is formed.

Other

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Forex Trading Signal Week #16 2011

I hope that some of you make some money from the head and shoulder down move on EURUSD last week. Although the price did not hit my price target and move further up, you should have made some profit from it. Below is the analysis for this week.

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

4 Hourly Chart: Strong Bullish

The overall trend for this pair is pretty strong and it is UP.

Forex Technical Analysis

Hourly Chart
On this chart, there is a formation of a double top but the price has not touched on the neckline yet.

EURUSD Hourly

Overall Forex Analysis
I will wait for the price to break below the neckline before I enter a short trade.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

The overall trend for this pair is flat and it looks to me that it is consolidating and a big breakout is likely to occur.

As a whole, there is nothing much to talk about for this pair as there is no specific pattern forming.

Other

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Forex Trading Signal Week #17 2011

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 Bullish

The 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 Hourly

Overall 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 Hourly

Overall 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.

Other

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Forex Trading Signal Week #19 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

As a whole, the trend for this week is still DOWN

Forex Technical Analysis

4 Hourly Chart
The price has retraced quite a lot last week and upon hitting the major weekly R1 pivot resistance, the price moves down quickly. In fact the price has broken the Weekly Pivot Point and has moved down further.

EURUSD 4 Hour

Hourly Chart
You can see the major support level on this chart at 1.41347 as it has been tested several times before.

EURUSD Hourly

Overall Forex Analysis
The price will continues to move down this week and therefore I will look for opportunity to go SHORT.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend for this pair is DOWN for the week.

Forex Technical Analysis

4 Hourly Chart
The price is being resistance by the Fibonacci 0.618 Level at the moment. At the same time, there is a weekly R1 pivot resistance slightly above the Fibonacci level. This will give rise to the difficulty in breaking upward.

GBPJPY 4 Hour

Overall Forex Analysis
I will look to go SHORT for this pair due to the strong resistance this week.

Other

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Forex Trading Signal Week #15 2011

If you have followed my signal last week to wait for the breakout of EURUSD and then enter your position when the price came back to retest the support of 1.43807, you should have profited at least 200 pips from the movement.

1) Forex Trading Signal For GBPJPY

Forex Trend Analysis

The overall trend for this pair is still DOWN

Forex Technical Analysis

Hourly Chart
The price is moving within a horizontal trend channel and the price is being held between a strong support and a strong resistance level. In addition, the MACD has neutralized which means that the downward pressure has been relieved.

GBPJPY Hourly

Overall Forex Analysis
I will continue to go SHORT for this pair but I will wait for the price to break below the trend channel before I take any position.

2) Forex Trading Signal For EURUSD

Forex Trend Analysis

4 Hourly Chart: Strong Bullish

As a whole, the trend for EURUSD this week is UP.

Forex Technical Analysis

4 Hourly Chart
I hope that you guys have profited from the downmove. However the price reverses and move back up nearly 300 pips and created another new high.

However at the same time, the price also created another MACD negative divergence with the formation of a railway track formation.

EURUSD 4 Hour

Hourly Chart
The price also forms a head and shoulder pattern on this time frame. In fact, at the time of writing this post, the price has broken below the neckline.

EURUSD Hourly

Overall Forex Analysis
I will look to go SHORT for this pair and I will look to exit at 1.44377 which is the price projection for the head and shoulder pattern.

Other

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Forex Trading Signal Week #13 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

4 Hourly Chart: Strong Bullish

As a whole, the overall trend for EURUSD is up for the week.

Forex Technical Analysis

4 Hour Chart
If you have read my previous analysis on this pair, you will have notice the formation of the 123 reversal pattern. I said that I will go SHORT if the price manages to break below the neckline of the pattern. However the price hit the level and indeed attempt to break below for six consecutive times without success.

After the sixth attempt, the price moves up and then came back down to test the same level for another 5 times below moving up again.

EURUSD 4 Hour Chart

Daily Chart
The price is moving up towards the next major resistance at 1.44839. The MACD negative divergence still holds as the price is making a higher high but the MACD did not manage to create a higher high.

EURUSD Daily Chart

EURUSD Daily Chart

Overall Forex Analysis
The trend for this pair remains strong but the MACD negative divergence did not get invalidated and therefore I will not look to go long. I will look to go SHORT when the price hit the major resistance but I shall be looking for other confluence like the reversal candlestick pattern.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend is mix for this week but I will look to go SHORT as the higher time frame shows sign of strong bearish

Forex Technical Analysis

Hourly Chart
The price is currently moving within a trend channel which is a sign of pressure relieve after a big up move.

GBPJPY Chart

Overall Forex Analysis
I will wait for the price to break the channel before I decided which direction to go.

Other

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Forex Trading Signal Week #14 2011

1) Forex Trading Signal For EURUSD

Forex Trend Analysis

4 Hourly Chart: Strong Bullish

As a whole, the trend for this pair is pretty strong and is upward.

Forex Technical Analysis

Daily Chart
The MACD divergence that I have talked about last week is being invalidated this week as the MACD has made a higher high.

EURUSD Daily

4 Hourly Chart
On this chart, you can see the formation of a head and shoulder pattern which is a reversal candlestick pattern. In addition, there is a MACD negative divergence forming on this chart as well.

EURUSD 4 Hourly

Overall Forex Analysis
Although the MACD negative divergence is being invalidated, you should not have entered any trade yet as the price did not break below the major support and this is exactly what we should do as a discipline trader.

However the formation of a head and shoulder pattern is a sign of reversal and it is in confluence with the MACD negative divergence. However there is a neckline for this head and shoulder pattern which is at 1.43807. If the price manages to break below the level, you can go SHORT. The best entry will be for the price to break below it and then come back to retest the level.

2) Forex Trading Signal For GBPJPY

Forex Trend Analysis

As a whole, the trend for this pair is DOWN.

Forex Technical Analysis

4 Hourly Chart
The price is now approaching a major support which is the 200 EMA.

GBPJPY 4 Hour

Hourly Chart
The price is currently moving within a trend channel and is also approaching its support.

GBPJPY Hourly

Overall Forex Analysis
I will look to go SHORT for this pair but I will be cautious as the price is moving towards a major support.

Other

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