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

EUR/USD Nears Last Resistance Zone for Bearish Outlook Daily: The EUR/USD rallied further this week and is going to enter an upper zone of resistance. If the market continues further but can find a top in the zone that starts at 1.3120 to 1.3250, it can still decline towards and even past the 1.1880 area. However, a breaks suggests continual rally towards 1.35 area. There is a bearish divergence developing. The slowdown in momentum can also be seen by looking for strong bullish candles. The

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

Pound is aiming to break higher having set a fresh weekly high in current hour at 1 5667 at the time of writing, barely 2 pips above previous one. Watch for an extension above 1.6585 towards the 1.5720/30 area, if the pair manages to accelerate, as 4 hours charts support the view. Downside likely to remain limited by 1.5600 area, also an interesting buying level if reached; only a break under 1.5550 should signal some downside momentum, towards the 1.5520 zone. View Live Chart for the GBP/USD

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

Half profit taking amid month end, half risk aversion Friday, EUR/USD has slumped from 1.3106 past Thursday to current 1.2980 area, losing around 120 in just one 4 hours candle, breaking under the 20 SMA in the mentioned time frame. Both, Momentum and RSI are heading south, crossing or about to cross their mid lines, suggesting further downside pressure ahead, yet due to the strong fall, some upside corrective movement could be expected before, that should not overcome 1.3020 resistance area,

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

EUR/USD In a quiet summer market this European morning, the pair just broke below important support at 1.3000 to the current 1.2995. We expect a move today to the 1.2950 next support and then see a sideways trend between 1.2950 and 1.3000. GBP/USD The pound broke below the 1.5600 handle against the dollar and is trading currently at 1.5581. We do not expect any significant upmove today but instead range trading between 1.5540 and 1.5600. USD/CHF Consolidating at higher levels from yesterday's

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

After a week of hard-fought gains and higher lows in the EUR/CAD, the Euro has weakened slightly against the Canadian Dollar and corrected lower intraday. After exhausting at the resistance of the Autochartist Forecast area between 1.3575 and 1.3603 (F)-which projected the upside target following the Rising Wedge continuation-prices are moving lower in what is likely intraday profit-taking. The EUR/CAD has returned lower through the upper trend line, and is now testing support around 1.3550.

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

The daily chart of Palladium traded sharply higher throughout Thursday's session, with momentum showing a very bullish sentiment as the overall market continues to trade within a wide, sideways range. The intraday time frames reflected this near-term strength, transitioning into uptrends across the 15-, 30- 60-, and 240-minute charts. Typically, the time frame that offers the most immediate entry is the short-term 15-minute chart. If a larger correction is to occur, the early signs of

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

The SPX500, better known as the S&P 500 index, is trending strongly higher on the 240-minute time frame despite the pullback during the past three sessions, which has transitioned the shorter-term 15- and 30-minute charts into fresh downtrends. On the 240-minute chart, the near-term downtrends have pushed price action to the support of the Channel Up pattern's lower line. This downside correction can trigger one of two entries, depending on the strength of the underlying trend. With an

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

AUDUSD - Narrow trading range is formed in the middle of the road between support and resistance levels, further waiting actions remain active. EURUSD - Resistance barrier looks strong enough to hold bullish movement, for now waiting action is better option. EURGBP - Look for selling options below resistance barrier, while bears can keep their strength under this level, bulls side is in danger. NZDUSD - It looks like bulls trying to get back their shape above support, but despite this current

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

The bullish reversal in June initially begun with daily bullish divergence (a lower low in price-action compared to MACD's higher low). The subsequent recovery was led by a break in RSI trendline resistance and the key 14-day MA, confirming the short-term trend shift. Today's close above resistance at 1.2986 (the 61.8% retracement from the April high) suggests a move towards the key 1.3125 (38.2% retracement from the Q4 '09 high). An acceleration through this Fibonacci level, which also

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

The greenback hits 3 month lows; data remains soft and Moody’s rekindles talk of a US downgrade MAJOR HEADLINES – PREVIOUS SESSION US Weekly Initial Jobless Claims out at 457k vs. 460k expected and revised 468k prior  US Weekly Continuing Claims out at 4565k vs. 4500k expected and revised 4484k prior  NZ Jun. Building Permits out at +3.5% m/m vs. revised -9.5% prior  UK Jul. GfK Consumer Confidence out at -22 vs. -20 expected and -19 prior JP Jul. Nomura/JMMA Manufacturing PMI

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

EUR/USD Euros finally broke above 1.3045 and buyers took the market higher for 1.3107 before coming back to re-visit the break point of 1.3045. As long as we can hold above this support today there is no reason why we cannot trade higher. Therefore buy dips to 1.3045, keeping stops quite tight below 1.3035. Cover on rallies to 1.3095/1.3110. Sellers may be waiting here, but will not hold if above 1.3125. A break above 1.3125 would see further upside moves with 1.3165 then 1.3185 targeted. On

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

The dollar fell versus its counterparts on Thursday. The 4-week moving average of US initial jobless claims decreased to the lowest level since May 8. The S&P 500 declined 4.60 to 1,101.53. The euro rose to $1.31 for the first time since May 4 as July eurozone economic sentiment climbed to the highest level since March 2008. The yen strengthened to 86.79 against the dollar at 5:28 p.m. in NY, from 87.35 yesterday. The loonie rose against the greenback for the first time in three days on

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

Pair continues holding above 1.5600 thus losing momentum as hours go by: 4 hours chart show indicators turned north, with 20 SMA as the level to break to confirm a downside stronger continuation: a candle opening under 1.5560/70 could open doors to further falls towards 1.5520 zone; under this last 1.5480 and 1.5440 are next in line for Friday To the upside, only above 1.5680 pair could regain previous bullish tone and test 1.5730 key zone. View Live Chart for the GBP/USD (Select the currency)

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

Pair has been holding above 1.5600 since Japan opening, having reached a fresh weekly high that suggest the bullish trend remains intact. Lacking strength, 20 SMA is turning flat still acting as dynamic support, while dollar weakness persist. Watch for the pair to rebound again from the 1.5600 area if tested; only under 1.5570 the downside could open to further falls towards 1.5540 area. To the upside, 1.5680 is the buying level as once above, next target today comes at the 1.5730 zone. View

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

The euro is making new highs for the cycle against the dollar even as stresses in the European banking sector remain.  The post-ESFS high from May 10 at around 1.3090 is being tested today, and improved sentiment suggests this level will eventually give way.  Peripheral bond spreads continue to narrow, but we note that 3-month EURIBOR continues to creep higher and was fixed today at another new high for this cycle and at its highest level (.833%) since the summer of 2009.

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

The daily chart of Lumber has been ranging between 217.00 and 197.30 as prices congest. This congestion has squeezed the intraday time frames into narrowing ranges that are setting up an Autochartist Initial Movement/Momentum (AIM) entry. Ideally, an AIM entry would capitalize on a breakout or breakdown through a Rectangle or Triangle pattern; however, due to the move lower intraday on July 27, the 60-minute time frame has formed a shallow Falling Wedge pattern. The market direction for this

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

The 30-minute chart of the AUD/JPY has bounced higher within a very strong downtrend. The nine-bar Autochartist Initial Trend reading indicates that bearish sentiment still dominates current price action. The Channel Down breakout through the pattern's top line is therefore triggering an aggressive reversal entry long. The buy taken at the downtrend line break at 78.08 (E) should not be expected to travel much higher than recent resistance (at least not immediately), which means that prices

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

The Sweden 30 index has formed a Falling Wedge pattern on the 30-minute chart. This is a downtrending pattern that formed based on the selling pressure from lower highs. The upper downtrend line represents the pattern's resistance, where swing shorts can be taken if the market is expected to follow through lower, or where a reversal breakout buy will trigger should prices rally higher through it. The expectation for either of the two entries taking place comes from the five-bar Autochartist

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

Testing 1.3090 area, pair should halt around this level before extending its’ rally, as we have several weekly highs and lows here, back from 2008 and 2009;  with hourly indicators reaching overbought conditions, yet 4 hours ones still heading north, pair should manage to consolidate around current levels, before finally breaking higher: above 1.3100, next target for the pair comes today at the 1.3150/60 zone. To the downside, corrective movement should reach no more than 1.3050/60 zone;

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

The recent short term reversal in the USD CHF as signalled by the bullish engulfing candle of last week, appears to have run out of steam with Tuesday's wide spread up bar running into solid resistance from the 200 day moving average which prevented any further gain.  Yesterday's narrow spread down candle suggested that the move was weak and indeed this has already been confirmed in this morning's trading with the USD CHF moving back below 1.0500 once again and trading below all four

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

EUR/USD In another lift in the European morning hours, the pair is trading right now at its highs so far today, at 1.3080. We see another consolidation on high levels setting in in today's further market development, touching upper levels near or slightly above 1.3100 and lower marks not below 1.3045. GBP/USD Cable is slowly continuing its rise in early European morning trading, currently at 1.5631. We expect some more strength, touching the 1.5690 mark, and then see some weakness towards

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

AUDUSD - It looks like bulls are trying to rebound back to resistance barrier, look for more upswings above resistance level. EURUSD - Despite the current jumping between support and resistance levels, stronger positive movement is expected just above resistance. EURGBP - Narrow trading range is extended below resistance level, if bears can manage to initiate a breakout at support look for more downswings. NZDUSD - Support level remains active, even though there was a drop down below this

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

RBNZ hikes rates as expected but also dovish in accompanying statement MAJOR HEADLINES – PREVIOUS SESSION US Jun. Durable Goods Orders out at -1.0% m/m vs. +1.0% expected and revised -0.8% prior US Jun. Cap. Goods Orders Non-defense, ex-Aircraft out at +0.6% m/m vs. revised +4.6% prior NZ RBNZ hikes OCR by 25bp to 3.0%, as expected NZ Jun. Trade Balance out at NZ$276m vs. NZ$368m expected and revised NZ$768m prior JP Jun. Retail Trade out at +0.4% m/m, +3.2% y/y vs. 0.4%/3.2% expected and

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

GBP/USD GBP still holding below this uptrend line we have been following, and as you can see from the above chart, we are desperately overbought. 60min charts are neutral, but do feel that these med term oscillators cannot be ignored for much longer, and if today we cannot break and hold above this uptrend line then we should fall back. Support is in the 1.5550/40 region, and a loss therefore of this region would keep the market underpinned, leaving 1.5480/70 then targeted. We would look for

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

The dollar dropped to an almost 2-week low versus the yen on Wednesday. US durable goods orders unexpectedly decreased in June. The Federal Reserve said in its Beige Book that US economic growth eased in some areas over the past two months. The S&P 500 declined 7.71 to 1,106.13. The euro traded at $1.2989 today, compared with $1.2999 yesterday. German consumer-price inflation quickened in July. The Canadian dollar erased gains against the greenback as crude oil prices fell. The Reserve

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

Pound holds a bullish tone despite lack of movements since mid American afternoon, thus having printed a higher high around 1.5640 4 hours indicators are turning back north as Asia develops, supporting the bias: watch for an acceleration above yesterday’s high, aiming to test 1.5685 first and 1.5730 area later. Break and confirmation under 1.5560, should erase current strength and trigger a bearish corrective rally towards 1.5510/20 zone. View Live Chart for the GBP/USD (Select the currency)

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

GBP/USD Hits Positive Reversal Target Daily: In last Friday’s Weekly Technical Update , it was noted that the GBP/USD developed a positive reversal (when the RSI low is lower or equal, but the price low is higher). The swing projection to 1.5610 was projected. The market reached 1.5637 already. I mentioned that this pair now enters a zone of resistance above 1.56. You can see in the daily that this is the zone between 50 and 61.8% retracement. 1H: The GBP/USD in the 1H chart also shows a rally

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

*NOTE – This is a mid-week report so we will be using only daily charts. EURUSD – Looking Like it Wants to Since breaking the daily kumo for the first time in the last 8 mos and the entire year of 2010, the EURUSD has performed notably consistent with a kumo break play as it has pulled back to the flat top and since bounced from there. It has however stalled around the 1.3000 barrier and after two major rejections off there with one of them sending the pair back to the flat top, the pair has

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

Approaching to 1.0550, pair is aiming to break again the midterm key support level, that will signal a return of the bearish trend; immediate support comes at 1.0520, so a break under this last, should signal a continuation towards 1.0470 strong area before pair halts intraday rally. 20 SMA in the 4 hours chart around current level, could offer some support: if the pair rebounds back above 1.0580, then a retest of 1.0610/30 area seems likely later today. View Live Chart for the USD/CHF (Select

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

EUR/USD The pair is still defending its higher levels this European morning and is getting ready for another attack on the 1.3040 resistance line, trading right now at 1.2988. We see that resistance being broken today and reckon with prices near 1.3080. GBP/USD Cable is currently trading at 1.5570 in an unbroken uptrend in the early European market and, in our view, on its way to levels around 1.5650 today. USD/CHF The dollar only slipped slightly against the Swiss franc in the European

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

The GBP/CHF has stalled at the top of Tuesday's intraday range, with the current ceiling at 1.6547. The uptrend has established itself across the 15-, 30-, 60- and 240-minute and daily charts with little-to-no correction lower, as the rally began off a double-bottom formation from the lows at 1.5833 and 1.5854. If the current congestion is an indication of the bulls exhausting, then the upper trend line of the Channel Up pattern on the 60-minute time frame should keep the GBP/CHF below the

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

AUDUSD - Support barrier remains active, despite the recent bearish movement, bulls remain confident. EURUSD - Narrow trading range is extended, however according to previous bullish movement – look for buying options. EURGBP - Support level stands very strong lately, waiting action is better option for now. NZDUSD - After reaching new highs by bulls side, bears have declined the price. At the moment, waiting action is better option. USDCAD - While resistance barrier is valid, bears are in

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

EUR/USD continues hovering directionless around the 1.3000 area thus turning lower within the range: 4 hours chart shows momentum is turning slightly lower, while price holds above 20 SMA around 1.2960 static support zone. Pair will again need to clear this last, to trigger some bearish movement aiming to test 1.2920/30 area first and maybe 1.2880 strong zone later, if the last gives up. To the upside, situation is a bit messier: immediate resistance comes at 1.3015, yet above it, the very

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

Intraday, the U.S. Dollar Basket traded within a wide range, with the market ending on a slightly more bullish note when prices found support above 82.20. The earlier test of the 82.00 level triggered buying momentum, rallying the U.S. Dollar basket to 82.53. This move, however, was not strong enough to transition the 15-minute time frame into an uptrend. Despite that lack of strength, a shallow pair of uptrend lines was able to form a Rising Wedge pattern. The Rising Wedge is currently

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

After the dramatic morning sell-off that accompanied the open of the U.S. equities market, Gold continued its downtrend into the afternoon, with no sign of slowing or profit-taking. This negativity pushed the market through the support area, from 1180 to 1175, that has kept the Gold market afloat over the past week. Once this level was broken, the drop came quickly as neutral intraday sentiment shifted sharply lower. The Channel Down pattern that formed on Gold's 30-minute chart shows the

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

After breaking through the downtrend line resistance of a Falling Wedge pattern at 110.00 (E) on the daily chart, the EUR/JPY has rallied to prior resistance between 113.30 and 113.40-well shy of the Autochartist Forecast area between 115.07 and 121.75 (F). The likely reason for the stall that came after the pattern reversal higher is the current market cycle, which still shows a strong eight-bar Initial Trend reading. This suggests there is still a strong downtrend on the daily chart; add to

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

A very weak Q2 Australian CPI print sends AUD reeling; rate hike expectations curbed MAJOR HEADLINES – PREVIOUS SESSION US May S&P/CaseShiller House Prices out at +0.47% m/m, +4.61% y/y vs. 0.20%/3.85% expected and 0.61%/3.83% prior resp. US Jul. Richmond Fed Index out at 16 vs. 12 expected and 23 prior US Jul. Consumer Confidence out at 50.4 vs. 51.0 expected and revised 54.3 prior US Weekly ABC Consumer Confidence out at -48 vs. -46 expected and -45 prior AU Q2 CPI out at +0.6% q/q,

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

EUR/GBP Eur/Gbp... Stalled at 8416 and came sharply lower for 8333, closing on these lows. Euro does look weaker still but we do have support in this vicinity down to 8325/8302. This may well act as a barrier against further selling pressure today, especially as we are looking to be oversold on the med term charts. However if we do break below 8300 any buyers are expected to turn tail as we would then be liable to further selling pressure with 8260/55 then targeted. If we can hold up against

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

The dollar was up against most of its counterparts on Tuesday. US May 20-city home prices posted the largest year-over-year gain since August 2006, but July consumer confidence fell to a 5-month low. The S&P 500 declined 1.17 to 1,113.84. The euro rose to a 2-month high versus the yen after data showed German consumer sentiment will rise in August. The yen fell against the greenback. Falling US consumer confidence pressured the Canadian dollar. The AUD/USD was unable to break the 0.9050

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

Having broke above 113.40, pair has turned more bullish from the daily perspective, with Japanese yen under pressure; currently moving inside a short term ascendant channel, retreating from highs and testing 114.00, base of the channel comes slightly above mentioned area, around 113.50, so a buying chance around that level, with a tight stop not so far, could be an interesting choice for this Asian session. Pair could lose current bearish bias only with a strong break lower, under 112.80, next