Forex Daily Signals, Analysis and News - 23 January 2008

I didn’t publish any report last night because I was figuring out to improve the reports in the way that help you more. It means spending more time for me but I still can do it while my positions are taken and I have some free time.

Please follow the link below and see what changes will be applied on the reports and when you should visit this weblog to read the reports:
What Is Going on in the Forex Market?

Many of my weblog readers ask about support/resistance breakout and the time we can say they are broken or they are not. I will write a detailed article about this subject. I hope I can do that very soon. However, thanks to those of you who support me with their questions and comments. Your comments motivate and help me to keep on posting the reports.

I also have a message for those who are not happy with my reports. I think they are getting serious to stop me. My weblog was hacked today morning. I don’t want to say that it was because of the forex reports but it seems some people are highly against the reports I publish on my weblog. Why? I really do not know.

Forex is the only business that competition doesn’t have any negative effect on it. In contrast, the more people start forex, the more volatility we will have and the more money everybody will make. So why some people don’t like the others to trade forex or know when a currency pair price wants to go up or down is still a question for me.

Tip of the day:

Do not trade using the small time frames, before you check the bigger time frames.

I know some of you are intraday traders and use small times frames like 15min, 10min and 5min to trade. Please keep in your mind that you should not do it before you check the one hour chart at least. The reason is that the small time frames reflect the signals of a small period of time. For example a 5min candlestick talks about the events that are happened during the 5 minutes that the candlestick has been forming whereas a one hour candlestick covers one hour. So the signals are more reliable.

So go short using a 5min chart only when the 15min and one hour say “short” and visa versa.

Ok! Let’s check the currency pairs.

If you have not read about the new changes that will be applied to my reports, please read it before you check the below analysis.

To give you a clue, I have to say that my nightly report covers the detailed analysis of 6 currency pairs (4 major currency pairs plus EUR/USD and GBP/USD) both for swing and intraday trading purposes. Additionally, I check more than 30 other currency pairs every night and will report only those that show clear and sharp signals for opening a position for swing trading.

Then the next day morning, I will analyze the 6 currency pair’s once again but mainly for intraday trading purposes.

I have made these changes to help all the traders in both sides of the world and also the traders who are interested in any of intraday trading or swing trading.

I suggest you to check both reports because you can make money both through intraday trading and swing trading. There are a lot of swing trading opportunities everyday and most of those who trade intradaily do not take the advantage of them which is highly recommended to do. I know you are afraid of big time frames because they need bigger stop losses too but if you find good, clear and sharp signals, your stop loss will not be triggered. Additionally, this is true that you need bigger stop losses in trading with daily and weekly time frames BUT the profit will also be much bigger too.

1. Euro against US Dollar (EUR-USD)

The daily shows a big double top which has not been successful as a reversal signal yet.

The Jan 23th daily candle is fully formed now and it shows a big hanging man with a long lower shadow. Although we have a big Bullish candlestick before it, the price could not go up today and tried to follow the downtrend that it has been following before the big Bullish candlestick. Currently the market is in an indecision and there is no signal for those who want to have a swing trading position. I know a lot of traders took a long position yesterday but they have to be careful because the market doesn’t show any tendency to go higher. This is what you can read from the candlesticks shapes.

The 4hrs shows that the price is stopped by a strong resistance (thick purple line) and also the 50% level. We have to wait by now.

The one hour chart shows a symmetrical triangle. It seems currently the price is going down to test the support of the triangle. Waiting for the triangle to break out is the best thing we can do.

2. US Dollar against Swiss Franc (USD-CHF)

I always expect to see something different in USD-CHF than EUR-USD but these days I see that sometimes they move to the same direction. The daily shows that it is forming a double bottom. It is also inside a triangle right now. The last candlesticks says that Bears are so strong. So don’t think about going long by now. The Bollinger middle band acted as a very strong resistance.

The last candlesticks in 4hrs show that Bears are exhausted but still strong. The long lower shadows show us that Bulls are getting strong and are trying to take the price up.

The one hour chart should give us more details about this indecision situation….

Yes; Bulls are getting strong. The Ascending triangle is broken up. The Bollinger middle band is also broken but now it is being retested. So it will go up.

3. British Pound against US Dollar (GBP-USD)

It is still downtrend and Bollinger middle band could not be broken after about 2.5 months.

The Jan 23th candlestick is a big Hanging Man which says that although the price went up on 22th but the Bears are so strong and could take the control again.

I enjoy smaller times frames more because they give more details. So lets check them.

The 4hrs chart says that the price was stopped and kicked down by the 23.60% level but then the Bollinger middle band worked as a support and prevented the price from going down. Now we have a symmetrical triangle which is so big. Currently both the Bulls and Bears have the same strength which means indecision.

The one hour shows more details of the triangle. We have to wait for the triangle to be broken out.

4. US Dollar against Japanese Yen (USD-JPY)

The Jan 22th candlestick is also a big Hanging Man which says the Bulls are trying so hard and took the price up but couldn’t take it above the open price.

The 4hrs admit that Bulls are getting stronger. You could go long after the two candlesticks with long lower shadows.

But the one hour shows a nice short opportunity. So if you had gone long using the 4hrs signal, you have to close your position because you will lose your profit.

5. British Pound against Japanese Yen (GBP-JPY)

Exactly the same appearance in the USD/JPY can be seen in the GBP-JPY daily chart.

Also in the 4hrs chart.

Also the same thing in the one hour chart. It is showing a short opportunity. So close your long positions and go short.

For this one I like to show you the 5min chart and the triple top that succeeded to work as a reversal:

6. Euro against Japanese Yen (EUR-JPY)

EUR-JPY also shows the same signals so I don’t place the charts here. Just the 5min chart also shows a triple top but here I can say that it is a head and shoulders pattern.

7. US Dollar against Canadian Dollar (USD-CAD)

Short opportunity:

8. British Pound against Canadian Dollar (GBP-CAD)

Short Opportunity:

9. Euro against Canadian Dollar (EUR-CAD)

Short Opportunity. Please note that if it can not break the Bollinger middle band, it will go up and then will try again.

10. Canadian Dollar against Japanese Yen (CAD-JPY)

Have an eye on it to go long.

11. Canadian Dollar against Swiss Franc (CAD-CHF)

Have an eye on it to go long.

12. New Zealand Dollar against US Dollar (NZD-USD)

A good long opportunity.

13. New Zealand Dollar against British Pound (NZD-GBP)

A long opportunity.

14. New Zealand Dollar against Euro (NZD-EUR)

A good long opportunity.

15. New Zealand Dollar against Japanese Yen (NZD-JPY)

A long opportunity.

16. Swiss Franc against Japanese Yen (CHF-JPY)

A long opportunity.

17. British Pound against Australian Dollar (GBP-AUS)

There is a short opportunity there but if you like to take less risk, you should wait for the price to break the thin purple line and then go short.

18. Euro against Australian Dollar (EUR-AUS)

A short opportunity.

19. Australian Dollar against US Dollar (AUS-USD)

A long opportunity.

20. Australian Dollar against Euro (AUS-EUR)

A long opportunity.

21. British Pound against New Zealand Dollar (GBP-NZD)

A short opportunity.

32

A short opportunity.

23. US Dollar against Swedish Krone (USD-SEK)

A short opportunity.

24. Euro against Swedish Krone (EUR-SEK)

A short opportunity.

25. US Dollar against Norwegian Krone (USD-NOK)

A short opportunity.

26. US Dollar against Singapore Dollar (USD-SGD)

A short opportunity.

Further Reading:
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