Daily analysis of GBP/USD for May 12, 2014 Trend News

Daily chart: This pair is finding support at the 1.6851 level. This bearish movement is part of a corrective movement in favor of the bullish trend, so expect this pair to make a bullish rebound at current levels. However, if the GBP/USD does a breakout at that support level, it is expected to fall to the level of 1.6766. The MACD indicator is in negative territory.

H4 chart: The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6900 after the pair has found resistance above the 1.7000 level. If the pair manages to make a breakout at the support level of 1.6841, it's expected to fall to the level of 1.6822. The MACD indicator is in negative territory.

H1 chart: The GBP/USD stays below the 200 SMA and now this pair is finding support at the level of 1.6850. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of 1.6800. However, one would expect that the GBP/USD will attempt to climb up the 200 SMA. MACD indicator is oversold.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6900, take profit is at 1.6950, and stop loss is at 1.6850.

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Daily analysis of major pairs for May 12, 2014 Trend News

EUR/USD: As a result of exponential weakness in the Euro, this currency trading instrument has formed a Bearish Confirmation Pattern and the price is supposed to continue to nosedive this week. This is true of all other EUR pairs. From a high of 1.3993, the price dropped by over 240 pips. This could be a beginning of another long-term downtrend: the price could reach the support line at 1.3700 this week.

USD/CHF: From a low of 0.8702, the USD/CHF shot upwards significantly. The pair trended upwards by over 160 pips within 2 days. This is the strongest upward move since early April 2014. Needless to say, the established bias is now bullish and it is expected to continue this week. Our targets are set at the resistance levels of 0.8900 and 0.8950. In the course of this, the support level at 0.8800 ought to act as a barrier to possible pullbacks along the way.

GBP/USD: This pair has also seriously dropped. This is possible because of the perceived strength in the USD. The accumulation territory at 1.6850 has been challenged and the price needs to go below that territory in order for the bearish bias to get confirmed.

USD/JPY: On Friday, there was no significant movement in this market. The outlook remains bearish, but the price needs to break the demand level at 101.50 to the downside, so that the bias can continue to be valid.

EUR/JPY: The price action on this currency trading instrument has resulted in an established bearish outlook. The price could reach the demand zone at 139.00 this week.

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Weekly technical levels of GBP/USD for May 12-16, 2014 Trend News

The weekly pivot point of GBP/USD pair.

Review :

• If the trend is of an upside character, then the strength of the currency will be defined as following: GBP is an uptrend and USD is a downtrend. Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapping and going up or down. If you sell or buy for a long term in this period, you will surely lose your profit.


• It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is a significant news, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.

Forecast :

• According to the previous events, the price of the GBP/USD pair has still been trapped between 1.6890 and 1.6790.


• The level of 1.6890 is representing the weekly pivot point. It should be noted that the weekly pivot point is coinciding with the ratio of 38.2% Fibonacci retracement levels.


• So, sell below 1.6890 in the short term with the first target of 1.6931 in order to test the double bottom, it might resume to 1.6786 (the support 1) if the trend will be able to break the double top at 1.6832.


• The stop loss should never exceed your maximum exposure amounts. Thus, it will be too profitable to set your stop loss at the level of 1.6955.

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Weekly technical levels of EUR/USD for May 12-16, 2014 Trend News

General idea about the pivot point:

• Resistance 3 and support 3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well in the sideways markets, as the prices are most likely to be located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and continue moving. If the breaking news released may affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3. If trend breaks resistance or support through, it is likely to result in a significant price movement, it is also referred to as breakout.

Technical levels of the EUR/USD pair:

Forecast and review :

• The double top will set at the level of 1.3993 and the double bottom is going to be set at 1.3745 level.


• The price had hit the weekly pivot point, the resistance 2, the resistance 1 and the support 1 last week.


• The major support is going to set at 1.3670 on May 12, 2014.


• So, according to the previous events, the price of the EUR/USD pair is going to move between 1.3831 and 1.3673.


• We expect a range of 180 pips this week.


• The level of 1.3831 is representing the weekly pivot point. Therefore, it will be very useful to sell below the price of 1.3831 in the short term with the first target at 1.3745; but if the trend is able to break the double bottom at 1.3745, then it might resume to 1.3670

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Daily analysis of USDX for May 09, 2014 Trend News

Daily chart: The USDX has had a bullish momentum above the support level of 79.19, so it is very likely that the USDX will rise to the resistance level of 80.11. For now, it is ruled a breakout at the support level of 79.19, as the USDX has enough bullish strength to climb up to that resistance level. The MACD indicator is in neutral territory.

H4 chart: The USDX is finding resistance at the 200-day moving average, after the USDX has made a consolidation above the 79.33 level. If the USDX does make a breakout at the level of 79.80, it's expected to rise to the resistance level of 79.93. The MACD indicator is in positive territory.

H1 chart: The USDX has made a breakout at the 79.64 level and now the USDX is forming a bullish pattern above that level and the 200 SMA. If the USDX makes a breakout on the resistance level of 79.88, it would be expected to rise to the level of 80.15. Furthermore, if USDX is able to consolidate below the level of 79.64, it's expected to fall to the level of 79.39. The MACD indicator is in positive territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 79.88, take profit is at 80.15, and stop loss is at 79.61.

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Daily analysis of GBP/USD for May 09, 2014 Trend News

Daily chart: The GBP/USD has fallen to the support level of 1.6851 where the pair could perform bullish rebound. However, this does not mean that the bullish outlook is in danger, because if GBP/USD manages to make a breakout at the support level, it is expected to fall to the level of 1.6766. The MACD indicator is entering neutral territory.

H4 chart: GBP/USD found support at the level of 1.6841, after this pair has made a breakout at the level of 1.6900. If GBP/USD manages to make a breakout at the support level of 1.6822, it's expected to fall to the level of 1.6785. Furthermore, if this pair able to consolidate again above the level of 1.6900, it is expected to rise to the level of 1.6980. The MACD indicator is in negative territory.

H1 chart: This pair is trying to consolidate below the 200-day moving average as the GBP/USD found resistance at the point of control that is close to the resistance level of 1.6950. If the pair manages to make a breakout at the support level of 1.6850, it's expected to fall to the level of 1.6800. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6900, take profit is at 1.6950, and stop loss is at 1.6850.

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EUR/AUD intraday technical levels and trading recommendations for May 9, 2014 Trend News

On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.

The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci).

As expected, the bears failed to fixate below 1.4750 on a daily basis. This hindered further bearish progression giving some time for a sideway consolidation for retesting of 1.4945 (50% Fibonacci).

After a few days of indecision around 1.4750, the bulls initiated a bullish spike off 1.4725, and finally they were able to push above the upper limit of the 4H congestion zone.

Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to its failure.

On the other hand, the lower limit of the depicted triangle located around 1.4850 failed to provide enough support for the pair. Instead, bearish breakdown took place pushing again towards 1.4725 where 61.8% Fibonacci level is located.

The expanding triangle pattern succeeded to push lower after the lower limit of it was broken down and retested successfully.

Overall, the daily chart suggests bearish tendency especially if the daily candlesticks maintain closures below 1.4730.

On the other hand, price zone above 1.4700-1.4730 should be watched for price action. Bullish reaction may be expressed to offer a valid BUY entry with SL as daily closure below 1.4700.

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