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Forex Trading Tips - Week ahead of Mar 17, 2014


Risk sentiment took a big turn on Thursday as the tensions between Russia and Ukraine escalated further ahead of this weekend’s vote.

EUR/USD

  • EUR/USD inched toward 1.40 before reversing sharply Thursday
  • Break below previous-resistance-turned-support at 1.3825 would erase bullish bias
  • Bias remains neutral in current range, but recent price action favors a downside breakout


The MACD continues to show bullish momentum, and the Slow Stochastics have pulled back from overbought territory, a potential possibility of another up move if 1.3825 support holds. On the other hand, a break below 1.3825 would shift the bias back to neutral for next week.

USD/JPY   

  • Approaching key support around 101.00, but a break below may expose key 100.00 level
 The USD/JPY collapsed last week on general risk aversion, dropping over 220 pips on the week. MACD is rolling back over after testing the “0” level for the first time since January, indicating a possible shift back to bearish momentum. For this week, all eyes will be on the 100.75-101.20 support zone, and if that does not hold, it may fall down to test the psychologically significant 100.00 level next. 50% retracement is at 100.746 level

GBP/USD
  • Bias remains neutral in current range, but recent price action favors a downside breakout

The 1.6600-1.6750 consolidation zone of last week held up for another week . The GBP/USD traversed the entire range twice over the course of last week’s trade, but still trapped within that zone. Meanwhile, the MACD has now started to trend lower below its signal line, an indication of bearish momentum in the pair and a sign that the risk is shifting toward a downside breakout this week. A drop below 1.6600 may expose the 61.8% or 78.6% Fibonacci retracements are at 1.6470 and 1.6370 respectively

- By our Forex Order Management team. You can use the 'Forex Order Manager' along with any manual or  automated forex trading systems to maximize your benefits.