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Forex Trading Tips - Week ahead of Apr 7, 2014





EURUSD

  • EUR/USD dropped sharply last week  after speech from ECB President Draghi
  • MACD crossed below the “0” level
  • Potential for more weakness probably to 1.3660 or 1.3580 in this week


As predicted, the pair continues to trend lower below its 20-day EMA. The pair is now testing the neckline of a 5-week Head-and-Shoulders pattern, which means that a confirmed break below 1.3700 level may result in a medium-term move lower from here. For this week, we’re focusing on Fibonacci retracement supports of 61.8% at 1.3660 and 78.6% at 1.3580.


USDJPY

  • USDJPY finally saw a breakout last week
  • MACD indicates bullish momentum
  • Bias now bullish above 103.75, with a high risk from now. Any drop below the current level, will take it to March 27th low at 101.72


After 2 months of lackluster action, USDJPY is showing signs of breaking out from the consolidation zone. The pair peeked above previous resistance at 103.75 but is struggling to hold that level. The MACD shows a bullish view, with the indicator trending upward above its signal line and the “0” level. But the overbought Slow Stochastics does raise a concern. If the pair can close above 103.75, a possible move up toward the 78.6% Fibonacci retracement near 104.40 is on the cards. A drop from current levels will take it below the March 27th low at 101.72


AUDJPY

  • AUDJPY exploded to a new 9-month high last week
  • MACD still trending higher, though Slow Stochastics is now in overbought zone
  • A medium term pullback possible early this week, but bias is generally bullish above 95.20 resistance


The pair exploded higher over the last 3 weeks, setting a new 9-month high above 95.20. MACD is showing bullish momentum in the pair, though the Slow Stochastics are seriously in overbought zone. So for this week, a near-term pullback off the top of the bullish channel is a distinct possibility. The longer-term bias will remain billish as long as 95.20 holds.

- 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.