Forex Daily Signals, Analysis and News - 10 January 2008
In this report, I can only cover the four main currency pairs and also the GBP-JPY and EUR-JPY but I will let you know about the good opportunities in any of the other currency pairs during the day. Stay tuned and check back.
Fundamentals:
Today we have Crude Inventories announcement at 10:30am. Click here to know more about Crude Inventories.
Tip of the day:
If you are an intraday trader, try to check the bigger times frames like 4 hours, daily and sometimes even weekly before your start trading. This is very important. In intraday trading, sometimes you trade against the market and this can be risky because it is possible that the market goes against you at any time and you have to be careful. If you check and analyze the bigger time frames, you will know that if you are trading against the market or not and so you can close your trade on time and before you lose a lot.
But the more important thing is that you can take less risk by not trading against the bigger time frames. For example if you trade using the five minutes chart, at least you have to check the one hour chart and be careful not to trade against it. When you see the one hour chart is going up, it is possible that the five minutes chart shows some bearish signals and you think that the price wants to go down but in most cases it goes down a little and then will follow the one hour chart finally.
This is true that when the one hour chart wants to change its way and go to the other direction, it can be seen in the smaller time frames first but this is only the time that the one hour chart really wants to change the direction and you don’t know when it will do that.
1. Euro against US Dollar (EUR-USD)
Yesterday, I advised you that if the 4hrs chart broke the Bollinger middle band and went up, you should go long and if it went down and broke the blue support line, you should go short. Hope you went short on time and made about 40 pips. It went down and then was stopped very soon by the 50% Fibonacci level that acted as a support. All the currency pairs had small movements recently. They are in an indecision situation but when you see such a situation in the market, you have to be careful because big changes are on the way and if you take the right position, you can make a lot of money.
I hope you went long after your short position because now it is going up and it is possible that it goes up to check the Bollinger middle band and the broken support.
The current daily chart doesn’t give any special signal by now. So we can not have any swing position according to the daily.
2. US Dollar against Swiss Franc (USD-CHF)
There are three green arrows in the yesterday 4hrs chart that show a strong support. This strong support caused the price goes up today. As you see, the USD-CHF acts completely against the EUR-USD.
The price went up and then was stopped by the 61.80% Fibonacci level. Now it is going down but the Bollinger middle band is acting as support. It is hard to say what will happen.
The daily still says it will go down. The previous day candlestick is completed almost under the 61.80% level. Going down has the highest probability.
3. British Pound against US Dollar (GBP-USD)
Yesterday I predicted that it will break down and it really did finally. If you went short on time, you should have over 100 pips profit in your hand by now.
The yesterday daily candlestick became completed few pips under the 38.20% Fibonacci level which is acting as support. This level acted as a very strong support on 17 August 2007 and kicked the price up for hundreds of pips. This happened long time ago and I don’t expect it happens again because the GBP has become much weaker than that time. If you are short, keep your position and move your stop loss to a proper position.
4. US Dollar against Japanese Yen (USD-JPY)
It seems I was wrong about this currency pair. It broke the triangle and I thought that it will go down. It went down but bounced up again. In fact I drew the triangle but it showed that it was not completed yet. We still have the same triangle that is not broken yet. Currently the price has gone up and is checking the upper side of the triangle as a resistance and it seems it has not been able to break it and so will go down.
5. British Pound against Japanese Yen (GBP-JPY)
It went up for one candlestick and then went down again. The wedge is changed to a channel now and the Bollinger bands have become so close to each other. It means the market is going to make a narrow range for a while. The price is moving around the Bollinger middle band and it seems it wants to go down again but it will not be that much.
The daily is completely in an indecision situation. All the last candlesticks admit this. Get ready for a big trade!
6. Euro against Japanese Yen (EUR-JPY)
EUR-JPY shows a channel like the one that we currently have in the GBP-JPY. It went up and tested the channel resistance but has not been successful so far.
The daily chart says that 61.80% level is hard to break. It went up to break it and but was unsuccessful and went down again. It should finally break down.
Further Reading:
Read and learn more about forex
trading and technical analysis
No comments yet.