Top Forex Brokers:TECHNICAL ANALYSIS for 31.12, 2013
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IMPORTANT ECONOMIC DATA DURING THE WEEK
EURUSD:
On H4 we could notice that the price has done three important bullish breaks in three important levels during the last week. First, we noticed that the price is forming a bearish trend (green) which brought the idea that the price might break the blue bullish trend (D1). Suddenly, the price broke through the green trend, then through the already broken red bullish trend and then after the 2-years high, creating a new top at 1.3891. Finally the price found resistance in a level (turquoise), which connects the highest point of the pair (2008) (MN) and the top from 2011 (D1). The price then rebounded and foud support in 61.8% Retracement of Fibonacci. Now the price is still testing this level. In an eventual bounce, the price would probably return to the turquoise resistance, where it would test. If the price breaks through 61.8%, we would probably see it on the blue bullish trend line.
USDJPY:
After the price broke through its previous top (5-years high) marked with a thick red line, it started following a small bullish trend line (blue), which it tested 4 times. This has distracted the price from the basic 2-months bullish trend (white). The Momentum Indicator is showing that the bullish move is exhausting, so we will probably see an interaction with the white bullish trend. We should not forget that the basic trend is the white line, so since the price has not interacted with it lately, we might see a break in the blue trend and a test on the white line.
GBPUSD:
This is the third pair, which has broken its top lately. The price is following a bullish trend line (white) for the last 6 months. This trend line twice brought the price to new highs. The last one was during the last Friday, when with breaking its last top, the price created a 28-months high. This confirms the future bullish movement, and the intentions of the price to go long. However, we should not forget that for the past 6 months the price is following the white bullish trend line and we could see a correction to the line at any time.
USDCHF:
On H4 graph we see that during the last week the price has formed a Double Top Formation and it completed it with giving even more than the expected. Then it came a rebound to SMA 50, which is the current location of the price. If the price breaks SMA50 it will reach the white bearish trend line, where it would test again, or the price could follow SMA50 until they reach the white bearish trend line, which would give additional resistive force. Anyway, since we have these two resistances, the chances to see a bearish move during the current week is big.
AUDUSD:
Last week we set a target on this pair, which was about to be accomplished, when suddenly the price changed its direction and even broke throuh 61.8% Retracement of Fibonacci. Then it did another bearish move with the same size, forming a bearish trend line (light blue). The last bottom the price formed is higher than the previous one (H1), which is a potential signal for a possible break in the trend. If the price breaks the light blue trend line, it could close a Double Bottom Formation (H1), which could change the mood by this pair. The Momentum Indicator is about to cross the 100-level line in bullish direction. Maybe the price would meet the upper level of its bearish c30orridor (red) after all.
Source From: Forex-Metal Forex Broker
http://www.topforexbrokerscomparison.com
