Forex Trading Signal Week #14 2011

1) Forex Trading Signal For EURUSD
Forex Trend Analysis

• Weekly Chart: Mix

• Daily Chart: Strong Bullish

• 4 Hourly Chart: Strong Bullish

• 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.
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.
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

• Weekly Chart: Strong Bearish

• Daily Chart: Mix

• 4 Hourly Chart: Weak Bullish

• Hourly Chart: Weak Bearish

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

1) Forex Trading Signal For EURUSD
Forex Trend Analysis

• Weekly Chart: Mix

• Daily Chart: Strong Bullish

• 4 Hourly Chart: Strong Bullish

• 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.
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.
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

• Weekly Chart: Strong Bearish

• Daily Chart: Weak Bearish

• 4 Hourly Chart: Weak Bullish

• Hourly Chart: Strong Bullish

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

The Forex Trading Course: A Self-Study Guide To Becoming a Successful Currency Trader (Wiley Trading)