Forex Trading Tips - Week ahead of Mar 31, 2014


  • EUR/USD broke 38.2% Fib support (not shown), continued lower last week
  • MACD bearish, though Slow Stochastics near oversold territory
  • Bias remains bearish below 20-day EMA
After brief increase early in the week, EURUSD continued to fall, breaking below initial 38.2% Fibonacci retracement support. MACD also has crossed below its signal line, indicating a shift to bearish momentum. As the Slow Stochastics are near oversold territory, a brief bounce is possible early this week. We maintain a bearish bias on the pair below the 20-day EMA with a possible down toward 1.3660.

The 61.8% retracement is at 1.36628. 


    • GBPUSD recovered strongly off the 61.8% Fib support last week
    • Bias is neutral, with a strong resistance at 1.6700
    The MACD is looking like it may cross back above its signal line. This indicates a shift back to bullish momentum later this week. However 1.6700 is a strong resistance. So more conservative traders may want to consider sell opportunities if rates reach this area, after confirming a bearish candlestick pattern. Otherwise it is better to avoid this pair, for this week


    Last week, CADUSD saw a false breakout above longer-term Fibonacci retracement resistance at 1.1230. But it dropped sharply all the way down to test the 1.1000 area, below its 20-day MA. MACD has started to cross back below its signal line, suggesting a shift back toward bearish momentum. For this week,  the bullish trend lines 1.1030 and the 1.0955 will form support. If those supports break, the possibility of a deeper drop is high.

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