FOREX TRADING

Daily Technical Analysis

EURUSD Outlook

As I had expected, after corrected lower on Wednesday, the EURUSD continued it’s bullish scenario yesterday, topped at 1.4817 and closed at 1.4792. As you might already know, I believe that we are in critical phase now with 1.4850 – 1.4950 as the key resistance level. Break above that area could lead us into a new stage of bullish phase towards 1.5300. The bias is clearly bullish now but we have to be careful and keep watching any reaction around 1.4850. On my daily chart below, we can see that we have potential double top formation around 1.4850 area. If price hit 1.4850 and reject further bullish momentum, we might have a potential bearish correction towards trendline support area (orange). Personally I prefer a bullish continuation testing 1.5000 even 1.5300 but like I said, I will be watching reactions around 1.4850 before make any decisions today. Although short position would be very uncomfortable at this phase, any rejection to move above 1.4850 should diminish my bullish view since that area is a long term key resistance level which is potentially has a bigger impact.

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Daily Forex Technical Analysis

EURUSD Outlook

The EURUSD continued it’s bullish momentum yesterday, topped at 1.4761 and closed at 1.4721. On h1 chart below we can see that 1.4671 area is an important intermediate resistance at this phase. The bias is neutral in nearest term and we might see some downside correction today, but the bullish scenario with 1.4850 as potential target especially if price break above 1.4761 area remains intact. However do not rush buying now. CCI heading down towards -100 line on h1 chart and price pullback after touch 1.4761 so watch out for potential downside correction testing 1.4695 – 1.4650 support area. I will be watching any reaction around that support area before make any decision today. If price able to stay above that support area, the bullish scenario re-testing 1.4850 should remains intact. Break below that area should diminish my bullish view but short position is not recommended at this phase.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD had a moderate bullish momentum yesterday, topped at 1.4668 and closed at 1.4648. On h4 chart below we can see that after struggle around the minor trendline resistance (red) where price cross up and down, the pair is now traded above the trendline resistance indicating bullish pressure still able to maintain it’s momentum. Technically in nearest term the bias is bullish testing 1.4720 – 1.4850 area. However please note that in longer term perspective, the rejection to move above 1.4850 on September 23 should keep the medium term bias remains neutral. Immediate support at 1.4610 and the trendline area (former trendline support, red). Break below that area should lead us into no trading zone as direction would become unclear.

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The Chande momentum oscillator is calculated within preset time interval by the following formulas:

diff = Pi – Pi-1,

where Pi -the price (usually closing price) of the current period;

Pi-1 -the price (usually closing price) of the previous period;

If diff > 0, then cmo1i = diff, cmo2i = 0.

If diff < cmo2i =” -diff,” cmo1i =” 0.” sum1 =” Sum(cmo1,” sum2 =” Sum(cmo2,” cmo =” ((sum1-sum2)/(sum1+sum2))” style=”font-style: italic;”>The CMO Oscillator basic methods of using are : (more…)

WILLIAMS %R Oscillator - Developed by Larry Williams, Williams%R is a momentum indicator used to indicate overbought and oversold levels.

Overbought market conditions are found at the upper band (readings from 0 to -20) and oversold conditions at the lower band (readings from -80 to -100). (more…)