FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Release: US Employment Change (Jan): 243K Consensus Forecast: 150K Previous: 203K Revised from: 200K Release: Unemployment Rate (Jan): 8.3% Consensus Forecast: 8.5% Previous:8.5% Anytime we get above forecast and above 200K employment change and decline in unemployment, we get welcoming sign for the US economy. Risk appetite usually leads to pressure for the USD. Indeed we saw that against the commodity currencies like USD/CAD, AUD/USD and NZD/USD where dollar weakness was apparent right after

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The GBP/USD has been under selling pressure this Friday, regardless the strong risk appetite seen in stocks. The 4 hours chart shows the pair holds the bullish tone seen over the past few weeks despite testing 1.5740 o US employment readings, having bounced back to 1.5800 afterwards. Technically, the recovery has stalled in the 20 SMA while indicators head south still above their midlines. More range is expected till the end of the day, with the pair trading between 1.5740 and 1.5830 levels.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD The EUR/USD failed at another attempt to rally above 1.32 in the 2/1 Us session, and fell through the Asian-European session until it came to attack the 1.31 handle. This was also where the 200 hour simple moving average was, and the RSI reading was at 40. These conditions that give support to EUR/USD signal some slight bullish bias, but also reflects the indecision and hesitation of the EUR/USD market in either direction. As the US session winds down, the market has failed again to

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Market is on wait and see mode ahead of the US employment data, with dollar under pressure as stocks advance. High yielders, included Australian dollar, hold the overall bullish tone seen over the past few weeks, with AUD/USD 4 hours chart showing indicators heading north above their midlines, and price finding support in a slightly bullish 20 SMA. As the pair will trade on risk, be aware of stocks reaction to the data: rising stocks amid a surprise positive number, will likely favor a spike

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/CHF Forecast Technical Analysis EUR/CHF is falling over time, but Thursday saw a little bit of a reprieve. However, the gains were mostly given back. The Swiss National Bank is currently ready to defend the 1.20 level, and most certainly act if the pair falls below it. Because of this, the pair can only be bought if you are to trade it. The candles sticks actually look quite bearish, but the backstop is a large one considering the market is being held up by a central bank that has said

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

GBPUSD: Biased To The Upside Medium Term Despite Price Hesitation. GBPUSD - Although GBP backed off higher prices to close lower on Thursday, we continue to maintain our upside outlook. This suggests that GBP should eventually return above the 1.5882/5 level.This will pave the way for further strength towards the 1.6074 level, its Nov’2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 1.5770/9 level where a reversal of

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD – Trading in EURUSD was mixed with the initial dip bought but the subsequent rally rejected, resulting in little net change for the day. However, price action from Friday’s high of 1.3235 to Wednesday’s low of 1.3026, has formed a consolidating expanding wedge. This formation had a bias to break to the upside. This bullish sentiment is further highlighted by EURUSD posting a higher intraday low. In view of these facts our call is a Buy with a stop of 1.3086. The profit targets are

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Brent Crude Oil futures are holding steady above $110 per barrel after having hugged this key support level through most of the trading week. This level serves as the rising trend line which forms the bottom of a Flag chart pattern highlighted here by Autochartist. The Flag appears on the Autochartist 240-minute time frame, currently listed as an active trading opportunity. The approach to support has already confirmed the pattern is intact as of Thursday’s session with a bounce from $110.50

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

After forming Point C on the Japan 225 (JP225) index CFD 30-minute chart, Autochartist had enough information to identify the making of an ABCD Fibonacci pattern and a possible rally to the Target Price or Point D at 8899.39. If this forecast price level is tested successfully during the time period allotted, the prediction is for the index CFD to break into a series of Fibonacci price levels ranging from 8885.63 to 8842.37. The ABCD Fibonacci pattern is known as the “backbone� of all

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

CAD/JPY continues to decline inside the Rising Wedge chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this chart pattern at the 6 bar level as a result of the strong Initial Trend (rated at the 8 bar level), average Uniformity (5 bars) and lower Clarity (4 bars). This Rising Wedge continues the prevailing downtrend visible on the daily CAD/JPY charts. Both of the connecting points of the upper resistance trendline of this Rising Wedge

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Forecast Technical Analysis EUR/USD fell during the Thursday session in a tight range. The candle is a hammer, and it looks like the market wants to rise as a result of the Non-Farm Payroll numbers later today. The pair sees a lot of resistance at the 1.32 level, which of course is the 38.2% Fibonacci level from the larger move down. However, we need to see this pair either break and close above the level, or break and close below the 1.29 level in order to get some kind of clarity.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Today it was the turn of the non-manufacturing category of PMI indices to grab the attention – and headlines seemed not quite so rosy as the manufacturing side. The official services PMI slid to 52.9 in January from 56.0 with a weak construction sector knocking the wind out of buoyant New Year-related retail sales and transportation. The privately conducted HSBC survey was unchanged from the previous month with a 52.5 print. We still feel that it is prudent to wait for March data to gauge the

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance ( daily close ) : 9382.12, 9744.26, 10 091.30, 10 935.23, 11 164.57, 344.92 and 11 520.30. Then 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20 , 13 162.50 and 13 320.00. Break of the latter will lead to 13 567.60, 13 668.74 and 13 792.53 ( published on October 21, 2008). Support ( daily close ): 9630.33 and 9358.35(main), 9090.00, 8912.62 ( published on November 10, 2009) . Today’s support: - 12679.00 and 12656.23 (main), where a delay and correction may happen.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Euros are actually holding steady at the moment...and although we may trade lower...there is excellent support at the 1.3015/10 area. Now the pattern that has been emerging this week is that of an inverse Head and Shoulder..Now this is not confirmed...but it is something that as a chartist I am on the look out for….confirmation will be a break of 1.3270. This will see the neckline and the med term 38% fib level breached and then we will find buyers coming back into the market. The

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

GBP/USD Cable retreated from the highs and closed lower yesterday...overnight we have seen this weakness persist seeing lows of 1.5785. So this morning we are looking at 1.5820 to determine direction. If we can break and hold above here there is no reason we cannot challenge the recent highs. We do need however to keep our eyes on the overbought condition of the daily charts. We would expect another test of 1.5885 if we can make the break and we would cover longs to here.. Re-instate longs

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Spot Gold Gold once more continued to trade higher, and we broke to 1761. We are seeing a small correction this morning, but the break has been made now in Gold, and even if we do pullback we are looking limited on the downside to 1747 possibly 1739 before buyers come back into the market. We are obviously still overbought n the med term charts, but currently this is having no effect on the price action..However it is still something that we need to be aware of going forward.. Small...and I

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Chart in Focus: Daily EURUSD The EURUSD is currently in a tight consolidation range between 1.3200-1.3050 after its recent thrust higher. Today formed an inside bar within this range and depending on what happens with tomorrow U.S. employment numbers we could see price break out of this recent sideways chop. Due to the recent strength in currencies against the U.S. dollar and increasing appetite for risk, we would favor a break higher above 1.3200, if this happens we don't see any significant

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

CAD/JPY The Japanese Yen has found some ceiling this week after strengthening sharply at the latter part of January. The CAD/JPY fell from near 77.60 to about 74.75. Although the bullish momentum seen in the 4H chart is killed (RSI went below 40 and even kissed 30), the market still holds a bullish bias. It is respecting the rising trendline drawn from Jan.9, and is respecting the 200 4H simple moving average. This is also between 50% and 61.8% retracement of the rally from 74.51 to 77.59. It

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

AUD/JPY The 1H AUD/JPY chart shows a market that had double bottomed after rallying above the 81.53 resistance pivot. The 1H RSI kissed 70, reflecting bullish momentum, but the market has since fallen from 81.87 . It is now at 38.2% retracement of the latest upswing. If the market is to confirm the bullish breakout from this double bottom, the bulls will have to show resolve by not allowing the market to fall below 81.06 (61.8% retracement). Also, if the RSI fails to break below, the bullish

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/GBP The 4H EUR/GBP chart shows a market breaking below a rising wedge to start this week. Price action was heavy, but the market bounced up from near a previous support pivot at 0.8280 . Note that the 61.8% retracement of the wedge pattern was nearby at 0.8290 . This pullback came up to test the 200 simple moving average in the 4H chart, cracked it, but then was rejected immediately. Since then the market fell back to the 0.8280 confirming the bearish intent by making a new weekly low as

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/CHF The EUR/CHF market is on it’s way to the first re-test of the 1.20 floor. This is the level the Swiss National Bank has pledged to “defend�. The EUR/CHF has been persistently bearish since falling from the 2012 high near 1.2470 and since Jan. 25th has been trading in a declining channel seen in the 1H chart. A bullish divergence developed over the past couple of sessions, and the 2/2 Asian session resolved it with a rally above the channel resistance. The RSI has also climbed back

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: Biased To The Upside Nearer Term But Continues To Consolidate. EURUSD - The pair will have to break and hold above the 1.3233 level, its Jan 27 ’2012 high to prevent a return to the 1.3025 level, its Feb 01’2012 low. If the latter occurs, EUR will decline further towards the 1.2930 level, its Jan 25’2011 low. Further down, support stands at the 1.2856/75 level, its Dec 29’2011/Jan 2011 lows. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the pair will

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The market mood is again turning negative, on disappointing news both in the UK and the euro zone. Stocks are slightly negative and dollar advancing slowly, with the GBP/USD 4 hours chart showing price developing in an ascendant channel since mid January, while despite losing momentum, indicators hold steady above their midlines. 20 SMA below current price also holds a strong bullish slope, favoring the upside. A break above 1.5860, should lead to a bullish continuation towards the 1.5920/40

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Video Coverage: Euro, cable, aussie, cad, oil and yen

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Market Commentary The US Dollar continues its loosing streak on the event of stronger asset classes especially the benchmark equity index of the Dow Jones Industrials (.DJIA); now that the Dollar Index is trading near short-term support of 78.20, DXH2 may trade sideways between 79.80 and 78.20; though the medium-term trend is bearish. The longterm trend is still bearish till the Dollar Index does not close above 83.50 on monthly basis. Historic congestion is seen in the ranges of 81.40-83.50.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/CHF Forecast Technical Analysis The EUR/CHF found itself treading dangerously close to the floor put in the pair by the Swiss National Bank on Wednesday. The move initiated on Tuesday saw the pair go as low as 1.2030 at one point, but the market backed off before the Swiss had to get involved. Without a doubt, only the foolish and reckless are selling at this point. The SNB will certainly intervene if the level is broken, and as a result – you can only buy this pair at the moment. Any

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

USDJPY – With a loss of over 2 Big Fig’s from the 25th Jan high, and with signals for sentiment at oversold extremes, buyers emerged at levels marginally higher than 76.00. Follow through bullish sentiment resulted in the 4 hour trend of lower highs being broken. Although some selling pressure has been posted in Asian trading this is assessed to be and limited. In view of these facts our call today is a Buy with a stop of 76.02. The immediate profit objective is 76.36, yesterday's high, with a

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Forecast Technical Analysis EUR/USD rose for most of the session as the Euro gained against the Dollar in a Fed-induced selloff. The extension of ultra low interest rates has the Dollar on the back foot, and as a result the Euro gets a bit of a reprieve. The pair is still caught between the two levels that we mentioned yesterday: The 1.32 and 1.31 handles. This shows a tightening of the range, and with the Non-Farm Payroll numbers coming out on Friday, three is a real chance this pair

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Having seen the smart turnaround in risk appetite during the European session, Asia was given further incentive to extend the rally Thursday with signs that Australia’s export economy continues to grow. The Australian trade balance for December showed a healthy increase in the surplus to A$1.7 bln from A$1.3 bln with a strong performance by exports behind the increase. Higher gold prices and a step up in coal exports contributed to the 2 percent increase in exports while imports were a slower

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Nymex Natural Gas futures slipped further underwater in Wednesday’s trading session to retest the multi-year lows set at the beginning of January. This price action confirmed an earlier breakout pattern identified on the Autochartist 15-minute time frame. With oil futures continue hovering at or above $100 a barrel and a strong energy sector overall, these sell-offs in natural gas may be establishing a long term bottom at these levels. The Pennant chart pattern illustrated here shows the

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Euros bounded back after holding 1.3020….It has gone higher than expected at 1.3220...but again..we really haven't yet broken through any significant resistance on the topside which still pushes me to a lower Euro…. We have excellent resistance at 1.3245...and although the market does look strong...we should get carried away with the herd unless we see a break of 1.3270...If we do break this resistance then buyers will be back in the market...sellers will be reversing and stopping out

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance ( daily close ) : 9382.12, 9744.26, 10 091.30, 10 935.23, 11 164.57, 344.92 and 11 520.30. Then 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20 , 13 162.50 and 13 320.00. Break of the latter will lead to 13 567.60, 13 668.74 and 13 792.53 ( published on October 21, 2008). Support ( daily close ): 9630.33 and 9358.35(main), 9090.00, 8912.62 ( published on November 10, 2009) . Today’s support: - 12679.00 and 12656.23 (main), where a delay and correction may happen.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

AUD/HKD has recently completed the high Quality Inverse Head and Shoulder chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 8 bar level as a result of the maximum Initial Trend (rated at the 10 bar level), below-average Uniformity (4 bars) and high Clarity (9 bars). This chart pattern continues the long-term predominant uptrend visible on the daily, weekly and the monthly AUD/HKD charts. This chart pattern reverses the

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

GBP/USD Cable sliced through 1.5812 as though it did not exist and up we charged to 1.5885. we have eased back from the highs a bit...but whilst we remain above 1.5812 even with overbought conditions the market should remain buoyant. We would expect another test of 1.5885 and we cover to here.. Re-instate longs then either on dips to 1.5820 or a break of 1.5890. If above 1.5890 we see further strength emerge with 1.5940/50 then the short term objective. Given yesterdays move we see some

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Chart in Focus: Daily GBPUSD The GBPUSD has been on a tear recently and is not really showing any signs of slowing down even though it did find some resistance near 1.5880 today. If price continues pushing higher and closes above 1.5880 we could see another leg higher and ultimately a re-test of the next resistance near 1.6100. In the meantime, traders can look to buy on pullbacks to support pending intra-day or daily price action confirmation.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

USD/JPY 76.00 is a psychological support for USD/JPY, while the 75.55 level is the record low. The market has been bearish since being rejected sharply at 78.25 as can be seen in the 4H chart. After breaking below a range support at 76.55, the market continued sharply lower until it got near 76.00. The USD/JPY here is oversold according to the RSI in the 4H chart and price action has started to decelerate. The 1H chart also the market anchoring out of a previous declining channel, yet it

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The EUR/USD is again stalling around the 1.3200 level, although dollar is clearly bearish across the board and the 4 hours chart shows the bullish momentum of the pair intact. Having set a monthly high past week at 1.3233, and with a daily Fibonacci retracement at 1.3240, 38.2% retracement of the daily fall from 1.4246 to 1.2625: the pair needs to clear this area to extend gains towards 1.3280 first, and 1.3310 later today. A daily close above 1.3240 may open doors for a continuation towards

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

GBP/USD The GBP/USD fell in the 1/31 US session and then in the Asian session in an ABC manner. However the 1H chart shows that the decline was held above the 100 hour simple moving average as well as respect the rising trendline. RSI held above 40 reflecting maintenance of bullish momentum especially when it was brought back above 60. In the 2/1 European and now heading into the US session, the market is accelerating to the upside. As discussed in the previous update, the move above 1.5770 ,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

USDCAD: Vulnerable Despite Price Hesitation. USDCAD - While USDCAD is trying to stage a recovery having held above the 1.0000 level, its big psycho level and its Tuesday low at 0.9964 level, it still remains susceptible. This will leave the pair targeting the 0.9890 level, its Oct 27’2011 high. Both its daily and weekly RSI are bearish and pointing lower suggesting further declines. Alternatively, the 1.0284/1.0317 levels will have to be violated to put on hold the pair’s present weakness and

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Forecast Technical Analysis EUR/USD rose for the beginning of the session on Tuesday, but gave up those gains before it was all said and done. The pair fell hard, but found the 1.31 level as being supportive yet again. The area was once resistance and now is working as support in the pair. The next few sessions should be fairly important as we test these areas. The fact that the 1.32 has held as resistance again is a bearish sign, (it is the 38.2% Fibonacci level.) but the 1.30 to 1.31