Apr 25 2008
Forex Technical Analysis
EUR/USD
The pair dropped more than 300 pips in the recent two days and is now floating around 1.5650. That level is a key Fibonacci level, and a validated breach trough that level will validate an additional bearish move. The failure of this attempt will most probably resolve in a moderate bullish correction.
GBP/USD
The cable has been showing a strong bearish price movement in the past 3 days and is now traded around the 1.9700 zone. The daily chart still shows a very bearish Slow Stochastic with no visible crosses expected. The 4 hours RSI confirms the bearish momentum, and it appears that the next target price might be 1.9610.
USD/JPY
The daily chart is showing the formation of a very accurate and distinct bullish channel, as the pair now floats in the middle of it. The daily Slow Stochastic and the RSI are pointing to very bullish grounds, and no correction appears to be in sight. Next target price should be around 105.10 and going long looks like a preferable choice today.
USD/CHF
After a very long period of range trading with no distinct direction, the pair has made its bullish breach, and appears to have established a starting point for a relatively strong bullish trend. The Slow Stochastic of the daily chart confirms the bullish momentum, and being on the buy side appears to be the right choice today.
Crude Oil
Oil has been moving within a very accurate bullish channel with very strong momentum for a while now. Today was the first bearish breach beyond the bottom barrier of it. This is marking a potential bearish corrective move, and forex raders might have a great opportunity to go short with tight stop, and catch that move at a relatively early stage.
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