Forex Trading Signal Week #30 2010

1) Forex Trading Signal For GBPJPY

Forex Trend Analysis

• Weekly Chart: Strong Bearish (DOWN)

• Daily Chart: Strong Bearish (DOWN)

• 4 Hourly Chart: Strong Bearish (DOWN)

• Hourly Chart: Strong Bearish (DOWN)

From the alignment in all the 4 time frames above, you can see the strong bearish sentiment of the GBPJPY.

Forex Technical Analysis

Weekly Chart
The price continues to move with the trend channel but you have to take note of the strong support at 120.000 level. Although it is still pretty far away, it is better for you to place a horizontal line as a reminder for yourself.

GBPJPY Weekly

Daily Chart
The price is meeting a strong support at 128.768 and the histogram of the MACD indicator is also sloping upward showing a sign of weakness for the seller.

GBPJPY Daily

4 Hourly Chart
A Gartley pattern has been formed and the price has broken below the trend line. There is a high chance that the price will move up to retest the trend line before continuing in its downward path.

GBPJPY 4 Hour

Overall Forex Analysis

Although the overall trend for the GBPJPY is bearish (DOWN), there are signs that the price is meeting with a strong support and may be retracing for a moment.

Therefore I will go LONG for the week and then go SHORT once the price retest the trend line on the 4 Hour chart.

2) Forex Trading Signal For EURUSD

Forex Trend Analysis

• Weekly Chart: Mix (FLAT)

• Daily Chart: Strong Bearish (DOWN)

• 4 Hourly Chart: Weak Bullish (UP)

• Hourly Chart: Strong Bullish (UP)

The overall trend for the EURUSD is mix as the upward on the hourly and 4 hourly charts could only be the retracement for the daily chart.

Forex Technical Analysis

Weekly Chart
The price is currently retesting the Fibonacci 0.618 resistance level again after the fail test last week. However the shortening of the MACD histogram signal the weakening of the buyer.

EURUSD Weekly

Daily Chart
In contrast, the price has been supported by a 0.500 Fibonacci level on this chart and is heading up.

EURUSD Daily

4 Hourly Chart
If you are trading the EURUSD, you will see a long down candlestick recently. This is because the price has hit a major resistance level at 1.28998.

EURUSD 4 Hourly

Overall Forex Analysis

I will look for opportunity to go SHORT for this pair as it seems that the price is hitting a strong resistance at the 1.29000 level which is a Fibonacci resistance level on the weekly chart together with a major resistance on the 4 hour chart.

Other Related Posts:

1. Forex Trading Signal Week #29 2010
2. Forex Trading Signal Week #28 2010
3. Forex Trading Signal Week #27 2010
4. Forex Trading Signal Week #19 2010
5. Forex Trading Signal Week #26 2010