May 01 2008
Forex Technical Analysis
EUR/USD
After several days of drops, the pair is showing a strong bullish signal on the daily chart. The daily Slow Stochastic is showing a bullish cross, and the 4 hour chart is supporting the bullish notion. There seems to be a fresh reversal momentum that might take the pair back to the 1.5720 level.
GBP/USD
There is a bearish channel forming on the 4 hour chart, as the cable now attempts to breach through the upper level. If the breach validates, there could be a much stronger bullish momentum created post breach. The 4 hour chart indicates that the possible breach might be quite imminent.
USD/JPY
The narrowing bullish channel continues, as the pair now floats on the bottom barrier of it. 103.10 should be a very strong support and a failed breach should probably stir fresh bullish momentum. Traders should wait for a dip around that support level before considering a long position.
USD/CHF
The daily chart is showing flat consolidation around the 1.350 level with no distinct price direction. The 4 hour chart is showing mixed signals, and the daily chart is dwelling neutral territory. Traders are advised to wait for a clear signal on any direction or keep out of that one today.
WILD – Crude Oil
The daily chart is showing that the bearish breach through the channel has been validated, and that the bearish momentum created by that breach might have enough steam to take Crude Oil back to the 112.00 zone before the weekend. Forex traders have a great opportunity to take advantage of a very strong technical breach with high profit potential.
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