Top Forex Brokers:Technical analysis for 10.03 - 14.03.2014
Keywords: Forex Analysis,Forex Review,top Forex Brokers,Best Forex Brokers, forex trading strategy,forex trading system,forex trading signals.
IMPORTANT
ECONOMIC EVENTS DURING THE WEEK
(GMT)
EURUSD:
After
its bounce from the orange resistance at 1.37711 and the
followed break through the blue bullish trend line, the
price created the impression that a bearish movement is
about to come. Despite of that, the price bounced from
the upper level of the already broken red bearish
corridor started a bullish movement, which broke the
orange resistance 1.37711 and even the 5-years turquoise
bearish trend line. Now for a second time the price is
testing the blue bullish trend line as a resistance.
This time, there is a bearish divergence between the
price's chart and the Momentum Indicator. This
divergence could change the direction of the price or it
could just force the price to test the 5-years turquoise
bearish trend line as a support and then the bullish
movement to be renewed.
USDJPY:
Having
in mind that for fourth time the price met the purple
bearish trend line and it even bounced from it, it could
be said that the Double Bottom formation, which brought
it there is completed. It looks now that the bounce from
the purple bearish trend line is about to change the
direction of the price. We do not say that the price
could not break the line. It is just that the line is
now being test for the fourth time and it is more likely
to believe in the bounce as a regular tendency for the
past 2 months. On the other hand, when the price was
bouncing in bearish direction from the bearish trend
line, the Momentum Indicator was crossing the 100-level
line in bullish direction, which plays as a bullish
divergence. But as we all see, the divergence is
extremely small and it could not affect the price's
movement.
GBPUSD:
After
reacting with the upper level of the blue bullish
corridor, the price bounced in bearish direction. After
dropping a bit, the bearish movement started turning
into a horizontal movement, which gave a hint for
building the orange bullish trend line. So, as we see
now, it looks like the price is being supported by the
orange bullish trend line. At the same time, the
Momentum Indicator has crossed the 100-level line in
bullish direction which is another sign for an upcoming
bullish movement. Furthermore, after the upper level of
the blue bullish corridor, the price was supported by
the 38.2% Fibonacci Level. If the price bounces from the
orange bullish trend line, the price might reach again
the upper level of the corridor, or it could even break
through the upper level of the blue bullish
corridor.
USDCHF:
With
breaking the red support at 0.87969, which created a new
30-months low. After creating this new bottom, the price
returned for a test of the orange bearish trend line,
which brought the price in this position. A bearish
bounce occurred and now the new lower bottom is a
fact.For this reason, a return to the orange bearish
trend line is possible and every bottom could be
perceived as a potential support, which could change the
direction of the price at any time. The orange trend
line gives us the option to trade the bearish bounces
from the line. The Momentum Indicator is still under the
100-level line, which is another bearish
signal.
AUDUSD:
On
D1 chart we notice that in the period between the break
of the price out of the red bearish corridor and today
the price has created a clear inverted Head and
Shoulders formation, which with crossing the turquoise
Neck Line got confirmed during the last week. Despite of
the current small bearish movement of the price, we
believe that the price will reach the orange bullish
trend line which would give the price the needed bullish
push in order to start moving after the bullish
formation. If the price hits the orange bullish trend
line, this could appear to be the best moment to go long
for a longer term. We remind that according to the Head
and Shoulders formation rules, in this case we could
expect a bullish movement from at least 430 pips. If we
manage to go long while the price is under the Neck Line
(for example now), this could lead to even better
outcome.
