Jul 31 2007
Daily Forex Technical Analysis
Daily Forex Technical Analysis
EUR/USD
The pair is now forming a downwards channel with strong resistance at the 1.3720 level. The daily chart is bearish, and the hourlies support the notion with a bearish cross above the 80 level on the slow stochastic. It appears that the pair is going to the 1.3600 level.
GBP/JPY
After a short correction, the pair regains the bearish path, and seems to be quite confident to reach the target point of 2.0100. The hourlies are quite bearish, as the dailies produce mixed signals. A preferable strategy would be to keep out until a clear daily sign will emerge.
USD/JPY
The pair seems to be having difficulties breaking through the 118.00 level, after several attempts that failed. This sets the support level as a very strong one, that if breached will produce a very strong bearish move. The ongoing sentiment is down so a preferable strategy would be to wait for a break signal before entering with a short position. 177.75 will confirm the move.
USD/CHF
The pair is floating at a relatively tight range for several days now, and the daily studies start sending bullish signals. The hourlies are still producing mixed signals, and most of the time is floating at neutral territories. A break through 1.2135 will confirm that the move up is valid, and will probably take the pair back to the 1.2300 levels quite soon.
Wild – Crude Oil
The upwards channel continues, as we see several attempts to break through the 77.20, with no success. This confirms the fact that Oil is accumulating the bearish energy, and that the correction is imminent. Forex traders might benefit from that, as it might be a great entry point for a short position.
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