Free Advice on how to trade forex using long term charts
Weekly:
Made a higher low at major support but still has some downward momentum left over from the last down cycle. The retrace could only manage 32.8% and with the 20 paralleling below the 50 it is telling us there are still lower prices ahead. This week’s higher volume suggests a shot at major resistance at 0.6700 with a possibility to maybe touch 0.6850 but it’s really more bearish than bullish.
Daily:
At minor support and it’s bottom trend line. This is the 4th time testing this bottom trend line so let’s see if the Rule of 4 comes into play. Also trapped in a triangle with the trend line from the recent highs so there is a breakout coming somewhere. Price, volume, cycles and momentum say to me that it will bounce back up to the trend line at 0.6570ish before making another attack on it’s base line. Too congested and not enough potential for me to trade.
CHFJPY:
Weekly:
In a strong upward cycle but bouncing off major resistance at 84.90. Volume, cycles and momentum look good for a push up to next major resistance at 88.00ish which also coincides with the 38.2% Fib retrace. Although the 20 is still below the 50, this week saw a strong close above the 20 so that is suggesting higher prices.
Daily:
Don’t be fooled by yesterday’s shooting star or today’s hammer – the cycle and upward momentum is still very strong and with the lower volume on these two bars, it suggests profit taking to me. This high is at Fib resistance, major and minor resistance at 85ish so if it clears this we have a good run up to 85.60 and 87.30. The 20 has crossed above the 50 suggesting higher prices ahead confirmed by a cross above the Weekly 20. I’m looking for a minor retrace to go long again.
EURGBP:
Weekly:
In a down cycle with good downward momentum although it stopped dead in it’s tracks at major support and the 20 at 0.8760ish with confluence of the 50% Fib retrace. The 20 is above the 50 and both are looking up at the heavens. No brainer here – my one legged blind man knows what to do!
Daily:
Bouncing off minor resistance at 0.8980ish in a corrective down cycle within the bigger up cycle. The 20 which is just below the 50 is also providing immediate resistance but we have two tests of support from the bottom trend line. On this alone, it could waffle about between the 20 and 50 but I’m looking for the Weekly to win out and maybe push it up to the down trend line at 0.9050ish
Lost my data feed so more later
Rock n Roll,
Strat