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TECHNICAL ANALYSIS for 18.12, 2013
IMPORTANT ECONOMIC DATA (GMT):
EURUSD:
On H4 graph we see that after findin resistance in the area of the 2-years high, the price has returned to the already broken bullish trend line and has tested it twice as a support. The level manages to stand the pressure of the price, which is now crawling on the already broken trend line in bullish direction. With the price being situated between the resistance and the trend line, we see that the distance between the two levels is getting smaller and smaller with the time, because in the next few days they will cross at some point. This means that soon we will see the price breaking through one of these two levels. If it breaks through the resistance, we will see a new top, bigger than the 2-years high.
USDJPY:
The third flag we descused yesterday appeared to be a fake signal and we saw the price doing a bearish jump through the 2-months bullish trend. Now it looks like the price is testing this trend line as a resistance. This might be a good time to open a short position, because the whole situation by this pair resembles a change in the trend in the past two days. On the other hand, we have the Momentum Indicator, which has just crossed the 100-level line in bullish direction. Still, the bearish signals look more promising. Furthermore, one more drop would bring the Momentum Indicator back, under the 100-level line. We should carefully watch the behaviour of the Momentum Indicator when openin positions.
GBPUSD:
It looks like the price changed the direction of its movement and now it shows bearish activity. The tops of the price are connected in a bearish trend line, which is already tested 4 times. The price is now located on this trend line, which is a great opportunity to try a short position. Having in mind the previous interactions of the price with the bebarish trend lines, if we catch a price drop now, this could lead to around 100 pips profit. We should also not forget that the white line underneath is the already broken 5-years resistance, where the price could now find support.
USDCHF:
On H4 graph we ntice that the price is forming a bearish corridor after testing the purple low level as a resistance. The Momentum Indicator confirms this direction too, forming the same corridor. When the price reaches the upper level of the corridor we could try a short position with a tight stop-loss line. If we are right about the corridor, this could bring a decent profit with minimal risk. We should aso follow the behaviour of the Momentum Indicator. Every divergence between the Momentum Indicator and the graph is a signal for closing our position.
AUDUSD:
Yesterday the price did an expected drop and moved with around 25 pips toward its target and broke its previous bottom. At the same time there is a small bearish trend line, which points the recent movement of the price (blue). We remind that the whole bearish activity and the target are as a result of the head and shoulders formation on D1. There are at least around 50 more pips in order to see the formation completed. The Momentum Indicatro has crossed the 100-level line in bearish direction, which supports the bearish thesis. We might see more from the price drop today.
Source From: Forex-Metal Forex Broker
http://www.topforexbrokerscomparison.com
