Forex and Trading News

Parabolic SAR is an indicator used by traders to find the direction of the pair’s most recent and significant momentum and more importantly larger than usual chances of reversing. The system itself is a stop and reversal system. It was developed by J. Welles Wilder. The dots above shows resistance and we will be selling and dots below is support and we will be buying. Its an indicator that gets chopped up in sideways market, so it definitely needs to trend and hence it is a trend following indicator.

Doireann McDermott speaks about the support and resistance level report in this video. EUR/USD is below the R1—1.2850 and above S1—1.2820. R3—1.2950 leads in resistance and has found 9 matches. R2—1.2880 has Bollinger lower bands among its 4 confirmations and R1—1.2850 has 3 matches. S1—1.2820 is backed by price channel indicator lower line and other alternative studies. The S2—1.2780 and S3—1.2710 support levels have single confirmation each. GBP/USD — has its closest levels of resistance at R1—1.6120 and support at S1—1.6090. The highest level of resistance at R3—1.6190 has found 9 matches. R2—1.6150 has 8 confirmation including 20 day Moving Average. S2—1.6060 leads in support with 5 matches. and S1—1.6090 has 3 confirmations. USD/JPY pair is currently between R1—80.00 and S1—.79.70. R1 is a phsycological level with total of 18 matches. R2—80.40 has 20 day Moving Average among its 3 confirmations R3—80.90 has a single match. S1—79.70 has 15 matches including the 100 day Moving Average and S2—79.40 has price channel indicator lower line among its 4 confirmations. The S3—79.10 is near Bollinger lower band and has 150 day Moving Average among its other studies. USD/CHF pair is trading in the range limited by R1—0.9370 and S1—0.9330. R2—0.9400 leads in resistance with 3 confirmations and R1—0.9370 is backed by price channel indicator upper line among other models. The R3—0.9450 sees a single match. S2—0.9280 has 11 confirmations and S3—0.9250 has 7 matches. S1—0.9330 is a 3 month high and has a total of 6 confirmations including Bollinger upper bands.

EURUSD Forecast
The EURUSD continued its bearish momentum yesterday, bottomed at 1.2814 and closed at 1.2829. The bias remains bearish in nearest term testing 1.2800 – 1.2750/33 region before testing 1.2625 area as a part of the bearish scenario since broke below the descending triangle. Immediate resistance is seen around 1.2880 – 1.2905 area. A clear break above that area could lead price to neutral zone in nearest term but as long as stays below 1.3000 my overall intraday bias remains to the downside.

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EURJPY Forecast
The EURJPY continued its bearish momentum yesterday, bottomed at 102.21 and closed at 102.46. The bias remains bearish in nearest term especially if price able to make another clear break below 102.20 testing 101.00 – 101.50 support area. Immediate resistance is seen around 102.75. A clear break above that area could lead price to neutral zone in nearest term testing 103.50 but as long as stays below 104.44 my overall intraday bias remains to the downside and I still prefer to sell on rallies.

GBPJPY  Forecast
The GBPJPY was volatile but indecisive yesterday made a Doji on daily chart. There are no changes in my technical outlook. The bias remains neutral in nearest term and price is still consolidating inside the triangle formation in medium term. Potential daily range remains between 127.80 – 129.37. I will stand aside for now.

AUDUSD Forecast
The AUDUSD continued its bearish momentum yesterday, bottomed at 0.9954 and hit 0.9943 earlier today. There are no changes in my technical outlook. Although the bearish momentum was not as strong as I had expected, nearest term bias remains to the downside still testing 0.9910 region. Immediate resistance is seen around 1.0020/43 area. A clear break above that area could lead price to neutral zone in nearest term but as long as stays below 1.0200 I still prefer to sell on rallies.

©2012 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

GBPUSD  Forecast
The GBPUSD was indecisive yesterday. There are no changes in my technical outlook. The bias remains bearish in nearest term but note that the major bullish scenario should remain intact and I still prefer to buy around 1.6000 – 1.6050 with tight stop loss below 1.6000. Immediate resistance is seen around 1.6122 (yesterday’s high). A clear break and daily close above that area could lead price to neutral zone in nearest term. Price is still in a bearish correction phase since fell from 1.6300 and need a clear break and daily close at least back above 1.6200 to end the current bearish correction phase.

©2012 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

USDJPY Forecast
The USDJPY had another insignificant movement yesterday. There are no changes in my technical outlook and volatility remains low. 79.52/35 region remains a good place to buy with stop loss below 79.35. Immediate resistance remains around 80.23. A clear break and daily close above that area could trigger further bullish pressure testing 81.00 – 81.80.

©2012 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

USDCHF Forecast
The USDCHF had a significant movement yesterday, broke and closed above 0.9320 resistance area. This fact leads price to a new bullish phase after consolidation testing 0.9400 – 0.9450 area. Immediate support is seen around 0.9300 – 0.9320. A clear break back below that area would lead price to neutral zone in nearest term as direction would become unclear.

©2012 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

Jennifer Cordingley speaks about the support and resistance level report in this video. EUR/USD pair has the closest levels of 1.29 — resistance and 1.2870 — support level. R3—1.2970 is the previous 3 months low with a total of 9 matches. R2—1.2930 has 8 confirmations including Bollinger lower band and R1— 1.2900 has price channel indicator lower line among its 4 matches. S1—1.2870 leads in support with 2 confirmations and the other 2 support levels S2—1.2840 and S3—1.2810 levels have found single match each. GBP/USD pair is below R1 of 1.6090 and above S1 of 1.6050. R2—1.6130 leads in resistance with 11 confirmations including 20 day Moving Average. R3—1.6180 has found 10 matches and R1—1.6090 sees 3 confirmations. S1—1.6050 has 4 matches and S3—1.5960 is backed up by 50 day Moving Average. S2—1.6000 is the phsycological level with total of 2 confirmations. USD/JPY — is trading in the range limited by R1 of 80.10 and S1 of 79.80. R1 has found 13 matches and R2—80.40 has 20 day Moving Average among its 5 confirmations. The highest resistance R3— 80.80 has 2 matches. S1—79.80 is well confirmed with 19 matches including the 100 day Moving Average. S2—79.50 has found 7 matches including the price channel indicator lower line and S3—79.20 is confirmed by the Bollinger lower Bands and 2 other models. USD/CHF pair was last seen trading between R1—0.9330 and S1—0.9330 levels. R1 is a 3 months high with a total of 5 confirmations. R2—0.9370 and R3—0.9410 have found single matches each. S2—0.9270 leads in support with 14 confirmations. S1—0.9300 has Bollinger upper bands and price channel indicator upper line among its 7 matches. S3—0.9240 has 6 confirmations.

This is a video from Martin Smith with the daily outlook from UFXMarkets. Stock markets finshed the trading week mixed as the S&P and NASDAQ gained  0.01% and 0.01% respectively, while the Dow declined by -0.33%. The US Dollar gained versus most of the majors as the European officials began to weigh the prospect of Greece withdrawing from the currency union. Gold fell by 0.88% to close at $1,579 an ounce and crude by 0.90% to close at $95 a barrel. Trading below the resistance level of 1.30 will keep the momentum of EUR/USD pair negative and the pair may test its strong support level of 1.2850 level. However it may retrace to 1.2950 level again. Trend for the GBP/USD pair remains bearish to maintain its resistance level at 
1.6080 and in addition the moving average points to trend remaining bearish. Commodity linked currencies such as the Australian Dollar continue to fall and may test the phsycological support level at 1.00 and if this pair fails to break the support level, then it may return to 1.0080 level.

EURUSD Forecast
The EURUSD attempted to push higher last week, topped at 1.3064 but whipsawed to the downside, closed at 1.2914 and hit 1.2878 earlier today. The bias remains bearish in nearest term especially if price able to make another clear break and daily close below 1.2880 testing 1.2800 – 1.2750 region before testing 1.2625 as a part of the major bearish scenario after broke below the descending triangle. Immediate resistance is seen around 1.2950. A clear break above that area could lead price to neutral zone in nearest term testing 1.3000 region. The falling wedge bullish pullback scenario should remain intact especially if price able to break above 1.2950 but any upside momentum now should be seen as a normal corrective movement and overall I remain bearish.

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