Mar 28 2008
Forex Technical Analysis
EUR/USD
The pair is consolidating at 1.5780 on the short term, and it appears that the momentum on the 4 hour chart is moderately bullish. The daily chart is showing that an attempt to breach through the 1.5850 is quite imminent, and might occur as early as the beginning of next week. Going long appears to preferable today.
GBP/USD
The cable is currently correcting down on a local level within the bigger bullish trend. The cross on the 4 hour chart indicates that the bullish trend’s comeback is at the doorstep. A strong breach through 2.0058 will validate the bullish return.
USD/JPY
The daily chart is very bullish as the slow stochastic shows no crosses and is floating at the 50 level. The 4 hour chart is giving mixed signal with no distinct market direction. Forex traders are advised to wait for a clear bullish sign on the hourlies before entering the market.
USD/CHF
After the strong bearish drop to the 0.9650 levels, the pair shows a moderate consolidation on the 0.9930 level. The 4 hour chart is showing a slightly bullish momentum, as the daily chart supports the bullish notion. Going long with tight stops might be a wise choice today.
WILD – EUR/JPY
There is a very distinct breakout pattern forming on the 4 hour chart in the shape of a triple doji. The slow stochastic is showing no crosses and has a positive slope. The Bollinger bands are tight which means that the bullish break is quite imminent. This could be a great opportunity for forex traders to enter the market on a long position with very high profit potential.
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