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Forex Trading Tips - Week ahead of May 12, 2014



EURUSD

  • EURUSD peeked out to a new 2.5-year high above 1.3965. Draghi created the reversal
  • Bounce possible from 1.3785 support levels. But a break below could take it down to 1.3675
The EURUSD started the week on a bullish note ahead of ECB President Draghi’s press conference. Once Draghi mentioned that the ECB may take easing action at its next meeting, the EUR/USD reversed. It dropped by over 200 pips from its high. MACD and Slow Stochastics indicate that the bears may be taking the upper hand heading into next week. 1.3785 forms a key support, and a bounce is possible early next week. But chances are more that the down trend continues to the previous support of 1.3675
GBPUSD
  • GBPUSD rallied to 1.70 
  • MACD still shows bullish momentum. But Slow Stochastics had started to pull back
  • Bias is generally bullish as long as 1.6840 holds
GBPUSD exploded on Tuesday, taking the pair up to a new 4.5-year high near 1.7000. Pullback has been limited suggesting that the bulls are still having the upper hand. MACD continues to move higher above its signal line and the “0” level. It suggests a strong bullish momentum. Slow Stochastics are just below overbought levels. For this week, bullish trades are generally favored above 1.6840.

- 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.