Archive | October, 2011

Forex Signals – BoJ Steps In & Euro Dollar Prediction

Technical Analysis

We are starting this week with Japan stealing the headlines in early Asian session when Bank of Japan intervened and pushed Yen pairs by more than 300 pips. Last week it was all about Euro and for now Yen seems to have taken the center stage.

What will be interesting is to see how market react to this move. Back in August BoJ made the similar move which turned out to be short  lived.

This week we also have US FED which will announce policy decisions and perhaps a another round Quantitative Easing on Wednesday. We then have Nonfarm Payroll numbers due on later in the week on Friday.

Lets look at how Forex Charts are lined up:

(click to enlarge)

Last week price on the EURUSD weekly chart reached the rising Trendline, which it broke sometime ago. This Trendline is currently acting as a resistance and we can expect a pullback before price can continue upwards. If price continues to gain strength then next level of Resistance comes at falling Trendline above at 1.4300-50 area.

(click to enlarge)

On the EURUSD daily chart price failed to break above 1.4260 area last week. Now it is looking to move lower towards rising Trendline which can act as a support at 1.3950-60 area.

Forex Signals

Risk posed by fundamentals in the Markets is still quite high, we advice caution and reduced risk exposure in such scenarios.

Forex Signal : Based on Daily chart, look for longs near test of Trendline at 1.3950-60 area. Once price moves below 1.3900 it will then open up room for short trades.

Don’t agree with this analysis? Leave a comment below.

Forex Signals – Euro Zone Relief

EURUSD Market Outlook

We had one of those weeks where market was overwhelmed by the fundamentals in the market. Yesterday we saw EURUSD zone policymakers striking a deal at the 11th hour which included haircut for Greece,expansion of the bailout fund and ways on recapitalizing European banks. Result of which was a big move up in the EURUSD and now lets see what it holds for the rest of the week.

Lets look at EURUSD weekly chart:

(click to enlarge)

Price rallied yesterday and touched the rising Trendline which was broken few weeks back. We may see some Resistance at this level, however if price continues to move up then 1.4300-50 area where falling Trendline meets would act as a major Resistance level.

Forex Signals

Look for strong signals to go short at 1.4250 area and again at 1.4350 area if price continues to climb up. In case there is a strong momentum to the upside look for longs with caution ideally after 1.4350.

Don’t agree with this analysis? Leave a comment below.

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