Forex Analysis

Hello traders! Stocks are higher, USD reached new lows against the majors during Asian sessions, and it seems that this type of a price action will continue this week, especially after a sharp impulsive break on Eur/Usd yesterday out of its 6-day consolidation range. USD weakness is also seen across the board because of higher commodities. Gold and oil are looking very bullish after reversal from the lows few sessions back.

this past week. In this video you will find out "how and when", "we or you can" become more confident into your analysis and forecasting in currency markets, which potentially can improve your success in trading. We think, that intra-market analysis and correlations, key market levels and patience are three very if not the most important facts. Check out video below for more details.If you would like to join and try our analysis absolutely three then register now and get immediate access to our members around for 72hours ABSOLUETELY FREE (no credit card needed, just your name and email!   

EURUSD: 1.2957 Short-Term Trend: downtrend Outlook: Several weeks ago we favored a short position in the 1.34/1.35 area with a target at 1.2870. The 1.2870 target was reached in the last week of 2011, so we are now flat. The daily downtrend remains strong as so far there is no evidence of a major bottom. But we believe that a low will be found soon either near the 1.2870 level or near 1.2670 level. Then, a rally back twd 1.3520 will be expected but only to be followed by another decline. We captured a big move down, so from a trading perspective it is wise now to step aside for a week or two. Strategy: The previous shorts from 1.34/1.35 hit our target at 1.2870. I am now flat.

EURUSD: 1.3042 Short-Term Trend: downtrend Outlook: A few weeks ago I favored a short position in the 1.34/1.35 area. Since then EUR has been under heavy pressure and has already declined below 1.3000 level. As the daily chart remains quite negative with prices below the declining 21-day moving average, I expect to see fruther weakness twd 1.2870 and possibly to 1.2670 before this leg lower is over and a strong counter-trend move up develops. Having said that, holding short remains my favored strategy here. On the upside, a firm and sustained trading abv 1.3200 will suggest a temp. low has been found already.... Strategy: Holding short remains favored with a stop abv 1.3250

EURUSD: 1.3384 Short-Term Trend: downtrend Outlook: EUR was little changed last week as it traded in a tight range between roughly 1.33 and 1.3450. As the prices remain below the declining 21-day moving average, the main trend is considered strong downtrend and further losses are still expected. I am a bit disappointed by the fact that there was no follow through selling last week, but still, the main focus remains down. If a rally develops, it is expected to find resistance near 1.3520 level. A sustained move abv there will indicate more upside potential twd 1.3720 and 1.3900 before the next leg down takes place... Strategy: Holding short remains favored with a stop abv 1.3550.

Despite some action on the FX market in the past week, provided by the ECB rate decision and EU summitmost of the major pairs remained trapped in a range, sideways market. As such, we decided to take look on some FX crosses, such as Eur/Chf  and Eur/Aud for potential trade set-ups.  We will pay a very close action to Eur/Chf, which is forming a very nice clean triangle pattern from where we expect a bullish breakout in the coming week. We know that SNB will do everything possible to prevent any gains of the Swiss franc, and if we aso consider the euro zone's latest plan to solve its debt crisis, then this should be supportive for the Eur/Chf! Click on the video below for a technical analysis, which also includes Eur/Usd and S&P500.   <br />

GBPUSD: 1.5802 Short-Term Trend: downtrend Outlook: The break below 1.5870 last week confirms the wave B from the early Oct low is over and if the presented wave count is correct, weakness twd 1.5000 lies ahead. Thus, I am bearish now as long as the prices stay below 1.6000 and 1.6100. A decline below 1.5680 will further solidify that bearish view. The daily oscillators more or less confirm the bearish outlook as well. So, with all this in mind, I favor shorts here as the downside potential is quite large at this point. I encourage you to wath my video analysis on all major markets (forex and stocks) that I recorded for you on Sunday.

EURUSD: 1.4203 Short-Term Trend: sideways Outlook: A week ago I thought  EUR was likely to break higher abv the 1.4530/40 level. Well, it reached that level, but couldn't break above it (probably the worst possible situation for a trader: to see a breakout only to see it can't hold). The failure to hold abv the 1.4540 produced a sharp move lower later in the week and EUR plunged below 1.4200 on Friday. Now, there is a strong sell signal from the daily Stochastics and considering the sideways nature of the daily chart, further decline is favored. The question is how lower  EUR can go.  If the previous Diametric is still valid, then it will find a bottom abv 1.4055 and will head higher again. If the count presented above is unfolding, then the odds favor weakness all the way down to 1.3520. Right now I favore the bearish case and only a move abv 1.4390 will make me think different. You can also...

  The USD/CHF saw a massive relief rally on Tuesday as traders suddenly felt that all was right in the world. Of course, this will more than likely change in a few hours, as the markets are very reckless at the moment. When that does – there should be a continuation of the overall trend, which of course has been down for years. We like selling rallies, and we like the 0.83 level as a place in which to sell.

  The USD/JPY had another quiet trading session on Tuesday as traders are largely abandoning this pair. The threat of the central banks intervening certainly makes this a dangerous pair to short, but at the same time – nobody seem to want to go long at this point in time. Therefore, it is an almost impossible pair to trade currently.