Daily analysis of the US Forex market trading session with DailyFX Currency Strategist John Kicklighter. Includes coverage of economic and financial market news, as well as an outlook for the day ahead and trading ideas.
GBP/USD long trade based on a close above previous resistance. Entry made by candle pattern. Reasons for trade: – Strong Bullish engulfing candle close on the 4H, which closed aggressively above previous resistance. – Price found support off the 8 & 21EMA’s. – Strong momentum shown on the 1H charts which should carry a high probability trade. – Price action found support off the 50% fib level & old resistance level from daily chart. – Good angle and separation of the EMA’s confirming upward …
EUR/USD I see the short term trend as down, therefore class this as a Trend Continuation trade based on: – Bearish englufing shotting star formation close on the 4H, failing to close above the 50% retracement line (from daily timeframe – shown in yellow on chart image). – Price action failed to close above the 1.4117 level together with candles showing a lack of upward momentum. – Price has now placed in a lower high on the 4H something which it has not done in some time. – 8EMA failed to …
GBP/USD short trade based on the 4 hour closing candle: – 4H close below previous support at the 1.6290 zone. – 4H shooting star formation (almost a mini evening star) showing lack of momentum. – 1D has placed a lower high and double top, together with the 8EMA flatting off. – 1H showing a lower high and lower low, which indicates lack of buying momentum & rhythm.
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GBP/USD long trade based on momentum from EMA / FIB lines / candle pattern explained. Reasons for trade: – Strong Bullish engulfing candle close on the 4H, which closed below previous resistance. – Price failed to push lower on the 4H time frame, and close below 1.4560. – Price action found support off the 23.6 & 200 moving average on the 4H. – Large belt holding candle on the 1H which confirms momentum. – The daily chart found support off the 89, together with price action placing a higher …
EUR/USD short trade based on the price action reaching top of channel. Risky trade, where I show you what to look for: – Series of 4H spinner closes showing trendline resistance, and lack of momentum to break price channel. – After the belt holding candle close at 16:00 (21/05/09) the small candles show a lack of momentum & emotion to the upside which you would expect with such a positive close. – Large MACD divergence on the 1D chart. – Price action is a large distance away from the 8EMA on …
EUR/USD long trade based on the 4 hour closing bullish engulfing candle: – 4H close found support at the 1.3920 zone. – 4H string bullish engulfing candle formation showing strong upward momentum. – 1D ranging and long opportunity comes at support. – 1H showing a higher high.
EUR/USD long trade based on a morning doji start candle formation. Entry made on a MACD confirmation: – Morning doji star formation on the 4H, which is a strong bullish signal. – Price found support off the 8 EMA. – A higher low has formed on the 1H. – Old resistance on the daily has now become support around 1.3550 / 1.3600
GBP/USD trend continuation (Long) trade based on the 4 hour closing candle: – Belt holding 4H close above previous resistance at the 23.6 fib level 1.6468. – Price action found support off the 8EMAon 4H and closed aggressively above the 1H box range. – 1D shows the 8EMA had taken control with price finding support off the 21EMA. – Angle and separation developing nicely on the 8 & 21 EMA’s on 1H and 4H charts.
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