Forex Technical Analysis
Daily technical analysis reports for the main forex markets including EUR/USD, GBP/USD, USD/JPY and EUR/GBP.
The following analysis covers short-term and long-term price movements. The different analysts give their interpretation of the support/resistance levels as well as market direction.
For more technical analysis also see:
Forex Technical Analysis - Updated: 22 February 2017
|| [8:07am] EUR/GBP Technical Analysis (30 mins chart)
Comment: the pair has rebounded above its support and remains supported by a rising trend line.
- EUR/GBP pivot point: £0.839
- Our preference: Long positions above £0.839 with targets @ £0.843 & £0.845 in extension.
- Alternative scenario: Below £0.839 look for further downside with £0.837 & £0.8345 as targets.
For more forex views or technical analysis see:
Applying Technical Analysis to Forex Markets
Below, an older but still useful case study on the euro/dollar market by Shai Heffetz, InterTrader, 27-Sep-2011.
After a fairly strong bull run on the forex markets between January and April 2011, the euro started moving mainly sideways for about four months.
Towards the end of August, it started dropping and, on the 2nd of September, it closed decisively below the Ichimoku Kinko Hyo cloud at $1.41940, see the chart below.
Since then it has been downhill all the time, except for a short corrective run between the 11 and 15 September.
At the time of writing, 27 September, it stands at $1.3535, more than 1,000 points below the recent high of $1.4548 it briefly touched on the 29th of August 2011.
The underlying reason for this must surely be the lingering European debt crisis and the fact that it looks very likely that Greece will default on its debt repayments.
Countries like France are heavily exposed to Greek debt and this has already resulted in two major French banks having their credit ratings downgraded.
If Greece is able to honour its commitments, this time at least, we might well see a short-term resurgence in the price of the euro/dollar spread betting market. Over the medium term, prospects remain bleak though.
Returning to the chart, all aspects of the analysis shout ‘Bear Market’.
The price is far below the cloud of the Ichimoku Kinko Hyo and is also below both the blue Kijun Sen and red Tenkan Sen lines. The green Chinkou Span line is far below the price 26 periods ago, further confirming that we are in a bear market right now.
Those spread betting investors looking for a medium term long trade should wait for the price to rise above the Ichimoku cloud again, which could be a long wait.
Short traders should look for new lows, below the recent low of $1.33614, before entering a trade.
'Forex Technical Analysis' edited by Jacob Wood, updated 22-Feb-17
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