Hello there Traders,
Welcome to our daily article on the Forex market! Thanks for taking time to read our FX analysis and potential Forex trade setups.
Your screen sharing
Before we start with the main content of the article, I wanted to let you know of a special feature of the Winner’s Edge website. You and all readers are able to upload your own chart via the comment section down below. So if you want to add your own chart with trend lines, Fibs or notes… then please don’t miss out on that opportunity!
Please click on this link to see a screenshot how you could upload your own screenshot. http://screencast.com/t/pAGmr6R3n2%20
Also, with that said I would like to announce our Forex contest: whoever uploads a screenshot and pastes it down below in the comment section this week has a chance of winning a free day pass to our live trading room anytime next week (Tuesday, Wednesday or Thursday). The FX contest winner will be announced on Monday April the 1st at 6am EST.
So seize that chance and not only make a chance of winning free access to 1 of the sessions next week of your choice, but also get your chart analyzed by me for free.
With that said, let’s move on to the chart analysis!
Needless to say the EURUSD has been in a clear down trend for quite a while. The last 2 weeks the currency has lost some of its downside momentum. With every bottom break the currency quickly retraced back up. The bottoms were getting closer and closer to each other and it surely looked like a bending of the trend. However with that said, one must also note that the currency is in a trend channel, a downward trend channel, albeit at a shallow angle.
Yesterday’s trading action showed the following interesting developments:
- EURUSD saw yet another crash down from the top side of the channel;
- There was a slight difference to note though: this time price stopped at previous lows and stalled at that area;
- There was powerful momentum down and the EURUSD is hanging at the bottom.
I am interested in trading it now?
No not really. The currency is caught in a tough spot.
I am waiting either for:
- a break and hook back to the broken bottom;
- or a move back to the top of the trend channel.
Those are setups I will be waiting to catch a potential short. Target area for a potential short is the big day support area at 1.27.
Will it materialize? No idea. I am cautious with the EURUSD and its movements. In fact if the trend line and top got broken and we retest the broken trend line, we might have a long opportunity. I am going to be in a waiting mode for the moment, with the trading ideas above as a guide line.
All righty folks, next currency!
The GBPUSD has made a decent sized correction to the upside after the massive down side move. The big question is: could the GBPUSD continue that huge down trend?
Yes, it sure can. And the good news is: it could do that from the current levels!
We can submit this short and to the point analysis on the GU:
1) The currency is at the top of the down trend channel;
2) The currency hooked back to the broken weekly resistance level;
3) The corrective upward channel has been broken;
4) The last 4 hour support level is now being tested as I am writing this article.
There are some key support levels to be aware of. And last but not least the upside correction might correct itself to higher grounds.
Nothing in trading has a definite certainty, of course. But as a trader we should attempt to capitalize on potential moves such as these.
And the GBPUSD down side has a huge potential. The -0.272 target could be all the way down to 1.46. So I am keeping a close eye out on the GU.
The current 1.5140 and the bigger 1.5030 bottoms of course are levels to be aware of. Just like the actual bottom at 1.4830.
Good Trading Everyone!
Latest posts by Chris Svorcik (see all)
- 1500 Pip Breakout Potential on USDJPY - August 20, 2014
- 110 Day GBPAUD Bear Flag Breaking - August 19, 2014
- Typical August Consolidation Valid With GBP Being the Exception - August 18, 2014
Winner’s Edge Trading, as seen on: