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Thursday, March 31, 2011

GBP/USD candlestick analysis for March 31, 2011

In a daily graph the GBP/USD is bouncing off after it failed to break the support level near 1.5960.
Earlier on a daily graph the GBP/USD has formed a Three Black Crows candlestick combination, which indicates downside movement.
This candlestick combination has formed after the pair failed to break the resistance level near 1.6400, which means that the bulls could not solidify here. Further the bears started to increase their influence.
Break of the support level 1.5960 will prove this viewpoint. In this case downside movement to 1.5750, where Fibonacci correction level 61.8 is also located, should be expected.
It is worth mentioning that stop loss should be placed slightly above the 1.6400 level. Since a break of this level will target the pair to 1.6450
Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2011
http://instaforex.com/forex_analysis/25867/?x=OUE

Wednesday, March 30, 2011

Oil review for 29/03/2011

On Tuesday oil futures grew amid doubts over resumption of oil export from Libya and stock market uprise.
On Tuesday oil futures showed growth as doubts about Libyan oil export have been increasing and stock market has been up. By the end of NYMEX trades the quotations of April futures on low-sulfur oil rose by 81 cent (0.8%) up to USD 104,79 per barrel. At the same time ICE trades resulted in Brent oil prices growing by 46 cent (0.4%) up to USD 115,26 per barrel.
Crude oil prices have been rising amid uncertainties over how soon Libyan oil will be back on the market. According to Libyan rebels, the country may well start exporting oil within a week.
However, there are persistent doubts about such fast returning of Libyan oil to the market, particularly with the situation in other parts of the region remaining quite unstable. Almost all Libyan export of nearly 1.3 mln. barrels a day ceased due to the national conflict and the sanctions imposed on it by the West.
Crude oil prices have been soaring since the beginning of the Libyan conflict which broke up in mid-February to reach its high USD 106.95 per barrel in the beginning of March. Earlier on Tuesday the very prospect of Libyan oil to be back on the market pushed the prices down.
Yet, some market watchers suppose that the prices have reached their high and now they expect them to decline, especially in case Libyan oil export is resumed. Additionally, oil prices were supported by hiking American stocks which contributed much to hopes for higher US demand for oil.
On Wednesday the Ministry of Energy is to publish its weekly data on the oil reserves and petroleum products of the USA.
Analysts expect oil reserves to increase by 1.5 mln. barrels, reducing thus gas reserves by 1.7 mln. barrels and distillate reserves, including residual oil and diesel fuel, by 400 000 barrels.

Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2011
http://instaforex.com/forex_analysis/25777/?x=OUE

Tuesday, March 29, 2011

EUR/USD analytical review with a forecast for March 29, 2011

On Monday the euro got support after the comments of ECB president Jean-Claud Trichet, which strengthened the expectations of eurozone rate hike, thus moving aside concerns about the European debt.


The trading closed in favour of the European currency that grew 90 pips versus the dollar; volatility of the trading amounted to 139 pips.


Fundamental review:


As for fundamental data, it should be mentioned that consumer spending in this February advanced more than expected, which indicates higher income of population.


According to the data, consumer spending in February rose by 0.7% compared to January. This was mostly caused by personal income up 0.3%; however, savings growth rate declined to 5.8%.


Economists expected spending to advance in February by 0.6%, income – by 0.4%.


In his speech Trichet confirmed his position concerning interest rate. He mentioned that ECB price stability is highly expected and called everyone to improve control of eurozone xompetitiveness.


Technical analysis:


Trading is located in the price channel. Its lower limit touches yesterday’s low 1.4020 while it upper limit is located near March 25 and 28 highs – 1.4193 and 1.4115.


The first support level at the moment is the 1.4066 level; if it is broken the decline might continue to 1.4141 and further to 1.4019.


In case the growth is resumed the EUR/USD will have to pass the 1.4111 level; further upside movement might be targeted at 1.4141 and further to 1.4186.


The Bollinger Bands are parallel to each other and indicating high liquidity on the market. The trading is located in the upper part of the channel and the medium line at 1.4987 is providing dynamic support to the pair.


The MACD is near zero, which indicates uncertainty among buyers and sellers about further direction of the pair.







Show full picture



Today’s recommendations:


Support levels: 1.4066, 1.4042, 1.4019

Resistance levels: 1.4141, 1.4141, 1.4186


Today I recommend buying the pair in 1-hour timeframe after it closes above the 1.4089 with T/P 1.4149 and S/L 1.4075.


Sell the pair in 1-hour timeframe after it closes below the 1.4064 level with T/P 1.4018 and S/L 1.4078.




Performed by Maxim Magdalinin, Analytical expert
InstaForex Companies Group © 2007-2011
http://instaforex.com/forex_analysis/25727/?x=OUE

Monday, March 28, 2011

EUR/USD Weekly Forecast 28th - April 1st / 2011

WEEKLY FORECAST :
Last week the EUR/USD failed to test the 1.4250 level, it looks like it provided a strong Resistance for this pair last week; this level
caused the pair to go down and close below the last week's opening price. However, if we look at the 10 periode Simple Moving Avarage, the pair
is still trading above that Moving Avarage and the slope is still going up; it means the downside movement is only a retracement. For next week we predict
the pair to test the Fibonacci Support 50% at the 1.4050 level, if this level is broken the mark 1.4000 will be the next target for this pair.
However, if the pair tests 1.4050 afterwards, this level can provide a strong support and the pair goes up again, the mark 1.4100 will be the target for the pair and 1.4150 will be the second target for the EUR/USD for next week.


Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2011

http://instaforex.com/forex_analysis/25625/?x=OUE

Sunday, March 27, 2011

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Friday, March 25, 2011

GBP/JPY Elliott wave count and Fibonacci levels - March 25, 2011

The GBP/JPY is developing corrective subwave B (colored magenta in the chart) within wave A of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 126.02-133.04, 122.49-133.04, and expansions off 133.04-131.19-131.75.

Supports:

- 129.90 = objective point (OP)
- 129.53 = .50 ret
- 129.01 = .382 ret
- 128.76-70 = confluence area of expanded objective point (XOP) and .618 ret
- etc.

If the price keeps advancing the immediate resistances will be Fibonacci retracements of 131.75-130.28, 133.04-130.28.

Resistances:

- 130.84 = .382 ret
- 131.01 = .50 ret
- 131.19 = .618 ret
- 131.33 = .382 ret
- etc.





Show full picture

Overbought/Oversold

Assuming that the medium term has reversed to the downside it's preferable to look for shorts when the Detrended Oscillator gets above the zero level (5-10 pips above the current price), or into the overbought area (80-110 pips above the current price - this rougly corresponds to 131.33 Fib resistance level).

Read more on how to apply Fibonacci studies to calculate price targets.


Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2011

http://instaforex.com/forex_analysis/25545/?x=OUE

Thursday, March 24, 2011

EUR/USD Bearish Outlook, March 24, 2011 (Daily Strategy)

EUR/USD

The Euro-United States dollar pair from its record high at 1.4247 has been corrected to the 1.4050 level. At this moment it is negotiating on the price of 1.4130, The resistance level of 1.4200 and the 61.8% Fibonacci retracement line could serve as a short input signal to continue the trend that had started even the weekly support line around the 1.3750 level.

We mention that expectations about what near future increase interest rates in Europe, the pair relocated back to 1.4000, with a forecast of $ 1.4300 as strong resistance.




Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2011

http://instaforex.com/forex_analysis/25503/?x=OUE

Wednesday, March 23, 2011

Morning Forex Overview

The yen strengthened slightly against the dollar and euro in Asia Wednesday as the broadening fallout from Japan's nuclear reactor crisis weighed on share prices, increasing demand for the country's low-yielding unit, considered a safe-haven.

While the yen added slightly to its gains after the news about the tainted water in Tokyo encouraged further safe-haven bids, dealers said the currency should stay above JPY80.00 in coming sessions.

The euro was a little lower against the dollar and the yen, as it consolidated its recent gains. The single currency continued to be supported by expectations of interest rate hikes from the European Central Bank, after recent hawkish comments from ECB officials.

European Central Bank officials, meanwhile, continue to hint that the euro zone could see higher rates as soon as next month, helping the euro move Tuesday above USD1.42. The common currency encountered technical resistance at those levels and fell slightly against the dollar in late trading, but was still considered to be on an upward path.

At 0450 GMT, the dollar was at JPY80.90, down from JPY80.95 late Tuesday in New York. The euro was at JPY114.70 from JPY114.95 and at USD1.4175 from USD1.4195. The ICE Dollar Index, which measures the greenback against a basket of currencies, was at 75.55 from 75.50.

The Pound is off to a strong start this morning, breeching the USD1.64 level for the first time in more than a year, as inflation continues to accelerate. UK CPI registered a 0.7% gain month over month, bringing the annual rate up to 4.4%; far above the BoE's target of 2%. With inflation having now outpaced the Bank's target rate for 15 consecutive months, investors have again begun to price in higher borrowing costs into the GBP.

The Australian dollar hugged a narrow range in trading Wednesday with no local news to fuel change, while attention remained riveted to Japan's nuclear crisis and developing hostilities in the Middle East. Late in trading, the Aussie was slightly stronger compared with Tuesday, but market watchers said there was nothing behind the move, with no fresh economic reports released.

Market expectation
Dealers said yen's sharper rises would continued to be limited by expectations that any such gains could prompt Japan's Ministry of Finance to order intervention to curb the currency.

The dollar would likely hold in a relatively narrow band around JPY81.00 for the rest of the global day, dealers said, as investors hesitate to make major bets amid the continued uncertainty over the situation in Japan as well as the military operations in Libya.

Heading into European trading, all eyes are on a vote by the Portuguese parliament on austerity measures. The future of Portuguese Prime Minister Jose Socrates hangs in the balance; with some chance he may resign if his plans are defeated, pushing the government closer to a financial bailout by the European Union and International Monetary Fund.

European stock markets are expected to open lower Wednesday, as worries about Japan's nuclear crisis and the military operation in Libya continue to weigh on sentiment, while nerves creep in ahead of Portugal's vote on its austerity measures.

Most important events of the day
Mar 23 Count. Event For Unit Imp. Act. Cons. Prev.
10:00 EU Industrial New Orders Jan % y/y
10:00 EU Industrial New Orders Jan % m/m
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Tuesday, March 22, 2011

The EUR/USD technical analysis and trading recommendations for March 22, 2011

Overview:



The euro is continuing the upside movement, the Bollinger bands are diverging up, which strengthened the new buy signal with target level 1.4220. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.4295 – the first resistance level. If this level is passed the second target will be the second resistance level at 1.4405. Upside movement remains while the price is above the Kijun-sen (1.4055), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuation of the upside movement, the lines are diverging and directed up. The MACD is ascending, thus indicating current upside movement, if it reverses down this will denote the beginning of a correction movement.

Trading recommendations:
Currently it is recommended to trade up with target at 1.4295 and further to 1.4405. Stop Loss should be placed below 1.4055. If the MACD reverses down, it is recommended to cut long positions.
In addition to technical image, one should take into account the fundamental data and the time of their release.

http://instaforex.com/forex_analysis/25319/?x=OUE

Monday, March 21, 2011

Morning Forex Overview

Previous session overview
A quiet day on the nuclear front in Japan is giving risk-sensitive currencies a lift, while the prospect of further central bank intervention has curbed yen appreciation for now.

Japanese authorities cited progress Monday in cooling the affected reactors at the Fukushima Daiichi Nuclear Power plant, as they continued to douse those reactors using fire trucks and water cannon.

The yen was weaker on the prospect of further moves by the G-7 central banks to sell it even though the safe-haven Japanese currency was supported by the ongoing military action in Libya and the surge in oil prices.

At 0720 GMT, the dollar was trading at JPY80.92, up from JPY80.60 in late New York trade on Friday; while the euro was at JPY114.67, up from JPY114.35, and at USD1.4176, down from USD1.4182.

Elsewhere, spot gold was at USD1428.00 per troy ounce, up USD10.10 from New York Friday.

The New Zealand currency also was up, changing hands at USD0.7335. The Swiss franc, meanwhile, sank against the U.S. dollar, reflecting the return of some risk appetite after last week's market shocks that resulted from fallout from Japan's earthquake, in particular the nuclear crisis.

The Pound held no resemblance to consumer confidence coming at record lows, as the BoE's involvement in co-ordinate intervention pushed the GBPJPY pair from JPY127.80 to higher near JPY132.53, simultaneously taking the GBPUSD along for the ride to trade as high as USD1.6256.

The Australian dollar pushed higher Monday in quiet trade, shaking off worries over Libya as Japan's nuclear crisis showed signs of easing. At 0526 GMT, the Australian dollar was changing hands at USD1.0015, up from USD0.9837 late Friday. Against the yen, it traded at JPY80.945, down from JPY81.35.

Market expectation
For now, much of the focus remained on the technical's surrounding the dollar, with analysts noting solid resistance around JPY82.00 and the risk of intervention on any dip towards JPY80. Others have noted JPY81.20 could be a difficult short-term resistance point.

Few economic data releases are scheduled from the U.K. or Europe. In the U.S., however, existing home sales data for February are due at 1400 GMT.

EURSEK is set to test support at SEK8.82/85 Monday after it crashed through the support level at SEK8.95, say dealers. This triggered a more profound downside reaction than anticipated. The pair must fall back beneath the 55-day moving average band to confirm that the recent correction has ended calling for fresh cycle lows, dealers added.

European stock markets are expected to open higher Monday, helped by gains in Asia overnight after Japanese officials announced that conditions at the Fukushima Daiichi nuclear power plant have continued to improve over the weekend.

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Wednesday, March 16, 2011

EUR/USD Technical Analysis. Support And Resistance Levels For March 16/2011

TODAY TECHNICAL LEVEL :
Breakout Buy level : 1.4056.
Strong Resistance : 1.4047.
Original Resistance : 1.4034.
Inner Sell Area : 1.4020.
Target Inner Area : 1.3987.
Inner Buy Area : 1.3953.
Original Support : 1.3940.
Strong Support : 1.3926.
Breakout Sell level : 1.3918

TODAY OUTLOOK :
It looks like today the EUR/USD wants to test its last channel at 1.3956; if this level can hold this pair and provide a strong support for today, it will cause the EUR/USD to go up again and the pair will test the 3 days high at 1.4015, and if this level can be broken out, this will indicate the bullish situation for the EUR/USD is back. On the other hand if the 1.3956 level cannot handle the downside movement of this pair and the EUR/USD closes below this level, it will indicate that the upside movement of this pair will be held.

TODAY SUGGESTION :
BUY if the EUR/USD can break out and close above 1.4015 and set Take profit at 1.4025 as the first target and 1.4050 as the second target.

SELL if the EUR/USD can break out and close below 1.3956 and set Take profit at 1.3945 as the first target and 1.3925 as the second target.

http://instaforex.com/forex_analysis/24931/?x=OUE

Tuesday, March 15, 2011

EUR/USD Technical Analysis. Support And Resistance Levels For March 15/2011

TODAY TECHNICAL LEVEL :
Breakout Buy level : 1.4061.
Strong Resistance : 1.4053.
Original Resistance : 1.4039.
Inner Sell Area : 1.4025.
Target Inner Area : 1.3992.
Inner Buy Area : 1.3959.
Original Support : 1.3945.
Strong Support : 1.3931.
Breakout Sell level : 1.3923.

TODAY OUTLOOK :
Since early morning the EUR/USD has been trading in a ranging situation between 1.3975 and 1.4000. However, the pair unexpectedly broke out and closed below 1.3975. Now it is going to test the next support at 1.3950 and this level can be easily broken because the EUR/USD wants to test the Fibonacci support area 78.6% at 1.3928. If this level can be broken out too, there is a possibility that today the pair will go down again to the 1.3900 level.

TODAY SUGGESTION :
NO TRADE suggested during the FOMC statement.

http://instaforex.com/forex_analysis/24879/?x=OUE/

Monday, March 14, 2011

GBP/USD. Weekly and Monthly Pivot Points, For March 14-18, 2011 2011-03-14

_____WEEKLY____
Weekly - R3 = 1.6656
Weekly - R2 = 1.6500
Weekly - R1 = 1.6292
Weekly Pivot = 1.6136
Weekly - S1 = 1.5928
Weekly - S2 = 1.5772
Weekly - S3 = 1.5564

_____MONTHLY______
Monthly - R3 = 1.6680
Monthly - R2 = 1.6479
Monthly - R1 = 1.6365
Monthly Pivot = 1.6164
Monthly - S1 = 1.6050
Monthly - S2 = 1.5849
Monthly - S3 = 1.5735

http://instaforex.com/forex_analysis/24843/?x=OUE/

Friday, March 11, 2011

GBP/USD Around Second Weekly Support , March 11, 2011 (Daily Strategy)

GBP/USD

The British pound - United States dollar pair is facing its second weekly support approximately 1.5959, is also important to note that there is a strong line of support, so the fall that brings the pound sterling, can hold at these levels, at these levels would be a good opportunity to buy with a target in 1.6160. around monthly pivot.


something we see on the graph, the analysis of 03 March where our outlook was bearish, so it is, having won about 300 pips.
http://instaforex.com/forex_analysis/24741/?x=OUE/

Thursday, March 10, 2011

Fundamental market review for 10.03.2011

The euro declined against the dollar on Thursday as concerns about Europe’s debt problems outweigh hopes for interest rate hike by ECB. It is also of concern that raising the interest rate ECB might provoke the next wave of debt crisis in Europe. In the meantime, investors are expecting European leaders’ meeting on Friday and bank stress-tests planned on the next few weeks.


During the next weeks the attention of market players will be concentrated on debt problems, as European leaders and Ministers of Finance will have a series of meetings devoted to these issues.


The euro was under pressure amid surprisingly bad data on China’s foreign trade. According to the Thursday’s data by Custom Administration, China’s export advanced by 2.4% y-o-y in February, which is considerably lower than January’s 37.7% and economists’ estimate (25.9%). These results were conditioned by the lunar calendar New Year. Nevertheless, the data turned out to be quite shocking and forced the investors to sell the euro. The dollar is supported by rising unrest in Libya.


Today US foreign trade balance data and federal budget balance data are due.

http://instaforex.com/forex_analysis/24661/?x=OUE/

Wednesday, March 9, 2011

EUR/USD Technical Analysis. Support And Resistance Levels For March 09/2011

TODAY TECHNICAL LEVEL :
Breakout Buy level : 1.3947.
Strong Resistance : 1.3938.
Original Resistance : 1.3925.
Inner Sell Area : 1.3912.
Target Inner Area : 1.3879.
Inner Buy Area : 1.3846.
Original Support : 1.3833.
Strong Support : 1.3820.
Breakout Sell level : 1.3811.

TODAY OUTLOOK :
The EUR/USD is now making a new downtrend channel, this is indicated by the lower peak level compared to a few recent highs. Today the pair is still in the Bearish situation and trading between Q2 and Q3 downtrend chanels. As long as the 1.3923 level cannot be broken out by this pair, the downside movement is still in advance. However, now the EUR/USD has been trading between 1.3875 and 1.3900. Please pay attention for the 1.3861 level because it is likely to be tested today as a 3-day low.

TODAY SUGGESTION :
BUY if this pair can break out and close above the 1.3900 level, set Take profit at 1.3910 as the first target and 1.3923 as the second target.

SELL if this pair can break out and close below the 1.3875 level, set Take profit at 1.3865 as the first target and 1.3850 as the second target.

http://instaforex.com/forex_analysis/24519/?x=OUE/

Tuesday, March 8, 2011

The EUR/USD technical analysis and trading recommendations for March 8, 2011

Overview:
The euro is still observing a buy signal with target level 1.3764, the target level is reached, upside movement continues, we are also observing current correction. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.4095 – the first resistance level. If this level is passed the second target will be the second resistance level at 1.4201. Upside movement remains while the price is above the Kijun-sen (1.3890), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is descending, thus indicating current correction movement, therefore it is recommended to resume up trading after the MACD reverses to the upside.





Trading recommendations:
Currently it is recommended to trade up with target at 1.4095 and further to 1.4201. Stop Loss should be placed below 1.3890. Up trading should be resumed after the MACD reverses to the upside.

http://instaforex.com/forex_analysis/24493/?x=OUE/

Monday, March 7, 2011

The EUR/USD technical analysis and trading recommendations for March 7, 2011

Overview:
The euro is still observing a buy signal with target level 1.3764, the target level is reached, upside movement continues. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.4095 – the first resistance level. If this level is passed the second target will be the second resistance level at 1.4201. Upside movement remains while the price is above the Kijun-sen (1.3870), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is descending, however we do not see any downside or correction movement, this can be explained by resetting of parameters as the indicator has no room to advance further. Therefore, it should not be taken into account.



Trading recommendations:
Currently it is recommended to trade up with target at 1.4095 and further to 1.4201. Stop Loss should be placed below 1.3870.

http://instaforex.com/forex_analysis/24421/?x=OUE/

Friday, March 4, 2011

The EUR/USD technical analysis and trading recommendations for March 4, 2011

Overview:
The euro is still observing a buy signal with target level 1.3764, the target level is reached, the correction has ended and the price has fixated above the Kijun-sen again. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.4020 – the second resistance level. If this level is passed the second target will be the third resistance level at 1.4202. Upside movement remains while the price is above the Kijun-sen (1.3850), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is ascending, which indicates current upside movement, if it reverses down it is recommended to cut long positions.

Trading recommendations:
Currently it is recommended to trade up with target at 1.4020 and further to 1.4202. Stop Loss should be placed below 1.3850. If the MACD reverses down it is recommended to cut long positions.
http://instaforex.com/forex_analysis/24321/?x=OUE

Thursday, March 3, 2011

The EUR/USD technical analysis and trading recommendations for March 3, 2011

Overview:
The euro is still observing a buy signal with target level 1.3764, the target level is reached, the correction has ended and the price has fixated above the Kijun-sen again. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.3888 – the first resistance level. If this level is passed the second target will be the second resistance level at 1.4020. Upside movement remains while the price is above the Kijun-sen (1.3800), if the price fixates below this line it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the continuing upside movement, the lines are diverging and directed up. The MACD is ascending, which indicates current upside movement, if it reverses down it is recommended to cut long positions.





Trading recommendations:
Currently it is recommended to trade up with target at 1.3888 and further to 1.4020. Stop Loss should be placed below 1.3800. If the MACD reverses down it is recommended to cut long positions.

http://instaforex.com/forex_analysis/24249/?x=OUE

Wednesday, March 2, 2011

The EUR/USD technical analysis and trading recommendations for March 2, 2011

Overview:
The euro is still observing a buy signal with target level 1.3764, the target level is reached, the signal has weakened as the price fixated below the Kijun-sen, which implies cutting long positions. The formed buy signal is strong and confirmed, since the Chinkou Span fixated above the price graph and the price is above the Ichimoku cloud. Thus, at the moment the first target for the upside movement is 1.3888 – the first resistance level. If this level is passed the second target will be the second resistance level at 1.4020. Upside movement remains while the price is above the Kijun-sen (1.3780), if the price fixates below this line (which has happened) it is recommended to cut long positions. The Chinkou Span is above the price graph, which confirms the current buy signal and indicates bullish sentiment. The Bollinger bands show the sideways movement, the lines are not diverging and directed sideways. The MACD is descending, which indicates current correction movement, therefore long positions should be resumed after the reverse of the MACD to the upside.



Trading recommendations:
Currently it is recommended to trade up with target at 1.3888 and further to 1.4020. Stop Loss should be placed below 1.3780. Long positions should be opened after the reverse of the MACD to the upside and fixation of the price above the Kijun-sen back. Otherwise it is recommended to wait until the sell signal is formed.

http://instaforex.com/forex_analysis/24171/?x=OUE

Tuesday, March 1, 2011

EUR/USD Monthly Forecast for March 2011

On monthly charts the pair has formed the Descending Triangle pattern, which indicates that the market looks confused about the situation now and this means the EUR/USD is a little bit drained out of volatility and the RSI (14) is betwen the 60 and the 40 levels too (it means sideways situation for this pair), however please pay attention to the breakout of this pattern, ussually it can cause a significant movement. For this month, if this pair can break out above the previous high at 1.3856, the spot rate will advance to at least the 1.3965 level as the first target and 1.4281 as the second target. On the other hand, if this pair can break out below the 1.3641 level, this will cause the pair to go down again to the 1.3589 level as the first target and the 1.3427 level as the second target.



http://instaforex.com/forex_analysis/24051/?x=OUE