EURUSD Forex forecast (21 — 25 May 2012)

Dealing Center NordFX

EURUSD Forex forecast for next week: 21 — May 25, 2012

As always, we analyze first the closure last week:

1) The weekly candlestick closed the black candle, but with a tail from the bottom, the price is not copied at least January 13, 2012 (at least the year), indicating a possible breakdown of the planned level down or the power level and the possible outbreak of korretsii up, even until a trend reversal .

2) Price strayed from long-term trend of the red line up (third contact).

3) Day on Friday closed sliding door stop spark up, which rewrote the candles Wednesday and Thursday, and in fact this is the first candle is white color with a range of about 150 points, which also speaks about the importance of the red trend line and a possible correction, further up.

4) But the price is still in a downtrend, which gives greater priority to transactions for sale and find the entry points to the continuation of the trend down to the end of the reversal patterns and patterns of forex trading.

For this reason, all the same options will be considered as a purchase and sales of major resistance levels for prices.

Consider the options for making deals and closing them when the price moves above the current closing price of the Week

1) First of all, after lights out last week from the long red trend line and the formation of at least a week, the price went up on Friday to the level of congestion signals for sale: blue trend line (its retest) + top line of the green channel background level of about + 38.2% Fibonacci of the maximum of the last downward movement (retest triangle forex). Approximately in this area and you can try to sell if the market does not open with a gap up or down — that is, this is the first resistance level for the price, and on how to behave in this price zone, and that will depend on the market further. Even if you do not enter at this point in the market — do not worry — the breakdown of her retreat, or give us a version of events (up or down). The priority of this area — the sale.

2) If the price breaks through this zone up (even after the slightest big rebound or down), then we have the next level is the purple trend line downward, breaking it up and retest the top-down + retest the blue trend line — a signal to buy.

3) The following insignificant level — magenta trend line (below which the market opened last week with a gap that was left is not closed). I can not say that from this point you should buy it or not, but then again its breakdown, or retreat from it gives a signal about where the fastest will move the market. So consider this level it is worth, and the variant of transactions from it, even though its short-term retest, or on the approach to it.

4) 1,2886-1,2915 level (the level of congestion on the Fibonacci recent downward movements) + close gap last week — the priority of sales there!

5) Red Line Channеl + level at 61.8% Fibonacci retracement of the last downward (though of course the region is wide enough for a clear signal, but if you sell between 61.8 and feet placed above the red trend line is a good enough signal to be obtained with minimal risk.

6) retest the bottom line of the triangle + close gap on May 7, 2012 — Sale of priority.

7) Well, if the price breaks the triangle, then the next level of the stop price — blue upper channel line. From it you can sell well, and buy at the close of the day above it and retest!

Now consider the options for price movements to bottom:

1) First of all, the current closing price of the market and the level of 38.2% Fibonacci you can try to sell (see paragraph (1) to move up).

2) The next resistance level of prices - pierced the blue trend line on Friday + level 61.8% Fibonacci of the motion on Friday.

3) The red trend line is a long-term — it is most significant at this point and we see that the price for its first touch went up, but since we still maturing divergence of the MACD on the weekly chart EURUSD and besides, there was no census, minimum January 13 2012, the price may well go back to this level and after that we are interested in closing the day, but better a week, on this level. At retest the line from the bottom-up approach can be sold on the rebound up and closing the day above the candle shop — to buy! Also on this level, we have averaged Violet Canal and closing date on its interest us as well.

4) If a breakdown occurs and may retest the red trend line from the bottom-up approach, it is possible to move down the long green line of the channel.

The approach to the line — the purchase, sample and retest — sales.

5) And the last on the current level of resistance to the price movement down the EURUSD — the blue line is the long-term channel. Buying and selling, similar to paragraph (4) to move down.

That’s all levels to stop the price on the market that I see on this point, and from which can be regarded as a transaction to buy and to sell, as well as the closing of the transaction or transactions, as well as use these levels as the levels for the next stop -losses.

I recall that in more detail the strategy forex forecast described in this video course «Safe Forex» or for free you can try to understand from the previous forecast forex the same site:

Just to remind:

1) MetaTrader 4 template, you must first unzip!

2) If the «get off» trend lines, channels on the forex market open on Monday — to tinker with their own, according to the image in the forecast and the forecast forex video!

Original: Forex forecast EURUSD (21-25 May 2012)

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