EURUSD forex trading forecast for the next week: 7 — 11 January 2013, which departs from the rules and graphical analysis of forex strategy forex website
- Recommend to forecast choose Forex Broker with MetaTrader 4
Brief analysis of price movement of EURUSD over the last week:
1) The week closed with black candles above the upper channel line flag on the D1. But still below the long black line of the channel below the blue + long-term trend line. From this we can say that still retest the flag — a signal to buy, but as described below critical lines, after all, for future purchases, and it is necessary that the price back above black, so at this point the priority of sales is also present !
2) Spark plugs still closed Friday white-tailed below, allegedly buying candles. But, again, again, before the price is below the black line and the blue channel long-term, buy still risky. Although they can be seen, but at the same stop should be placed below the low of the previous week.
3) Of course all the important holidays that may affect the situation in the market have passed, this is a big plus! And now the market returns to its channel and therefore can be treated as «adequate» at the time.
Now let us consider in more detail the most important resistance levels for prices and sell signals, or at the approach of the breakdown of their prices the same.
If we look at the chart of the currency pair EURUSD, it is not difficult to see that above the closing price of the week has accumulated a lot of trend lines, channels, and in many respects they are strong enough, but give conflicting signals at different intervals. Hence, to enter into transactions with confidence recommend it from the lines that are marked with orange triangles. All that is marked with blue triangles, is less relevant signals, and this time the price can approach these lines, punching them, fight them, but the simple answer to go with the price I do not give. If formed a clear reversal pattern or trend to continue, then the situation will be more clear, but now there is not. So watch out for comment of the week for this forecast!
To begin, consider the options of resistance levels located below the closing price of the week:
1) We see that Friday still closed above the 2 important resistance levels: 38.2% + 61.8% Fibonacci. Therefore we can say that the rebound from these levels in force for the price could easily go on. Therefore retest channel background blue flag can still give a buy signal. While the best option — to wait for the formation of sliding door stop candles from the line and then consider buying.
Similarly, the retest may be up to the black line of the channel from the top down, but for shopping, waiting still hang above the blue line above.
2) hit the black line of the channel long-term closure of the day + + below its retest — a signal for further sales, although it may form a figure of «flag» so that if the census low last week, and there is no reversal is formed up, maybe another wave correction movement.
3) The orange trend line drawn through the lows: 24/07/2012 + 13/11/2012 — quite possible release of the line if the price will come to her, as this will be the third touch prices. The breakdown of this line + daily close below, preferably a week + retest — consider options for further sales!
4) The level of 61.8% Fibonacci dotted brown (1.2909)
5) The green line channel long-term, especially if it is also a level of 38.2% Fibonacci Brown (1.2825). Break the green trend line + closing the day or week + retest its bottom — further sales to approximately retest orange background channel.
More below I will not consider the levels of resistance, as they saw before and do not know if the price comes up to them over the next week.
Variants of the resistance and forex signals located above the closing price of the week:
1) purple line channels — the price is almost tested it on Friday, but still one more chance to retest sales. Break up and retest — confirmed the priority purchases, at least temporarily.
2) The green trend line — price breaks and retest it almost happened, but all the same as the price is trading below it, buy I would not consider. Especially this line will be important if its retest of the bottom-up will have to cluster the Fibonacci 38.2% of the downward movement of the latter. If there is a breakdown of this line up, and preferably above the red line of the channel (it’s near the end of the week), we are considering a purchase.
3) The red line channel — is available as hang down and broken up. Therefore, depending on the retest, if it is, consider which way to trade or confirmed to closed deals.
4) retest the lower line of the triangle, a break down, especially if it will still be congestion and Fibonacci 61.8%. Lights out at the signal I think is unique, but how strong, do not tell …
5) retest punched pink background channel — the first approach the retreat down the fastest will be, most likely at least to the bottom of the triangle, but if there is a breakdown of the channel up, a daily close above + retest its top down, the fastest shopping will continue.
6) The upper boundary of the triangle — the situation is similar, the closure of the day care, relative to that line. Break up and retest the top-down — a signal for further purchases!
7) The upper limit of the red channel — the first approach the possible release, as it is the third touch of the price breakdown, the closing day and retest — a buy signal. While stopping the maximum possible on the census of the triangle or the entire uptrend.
8) The upper limit of the channel + pink cluster of Fibonacci — 50% + Extensions Fibonacci 161.8% + 261.8%. From this line most likely hang down, but if there is a breakdown of the week closing up + retest, the priority purchases remains at least until brown trend line.
That’s the whole forex forecast EURUSD, at this point.
As for me, I weigh everything, I assume that the price of the fastest go further down to at least the orange trend line, and then to the level of 38.2% (1.2825). If, nevertheless, the price will trend above the green line + red bottom line of the channel, the priority purchases will resume.
This of course does not mean that all three levels of resistance do not need to sell, you can sell, but carefully and pre-weighed all the signals from your forex strategy! And of course if there will be in this area of uncertainty any confirming signals.
- Download a template for MetaTrader 4 on EURUSD — 6_01_2013_eurusd.tpl
