Forex618.net Daily Currency report

[forex618]

Daily Currency report for Wednesday May 30 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish

Weekly trend reversal level: 1.3531

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: Up 100 pips yesterday and then right back down again. It's no wonder that the market is lacking direction as we near the end of this month, with many traders probably frustrated at the lack of volatility and hurting from the number of whipsaws this month. Yesterday's "spike high" means that weekly and daily momentum remains bearish, and we continue to expect a drop to between 1.3350 and 1.3300 before a new base is formed. There is an outside chance that 1.3420 (yesterday's low) will hold for the rest of this week, but this is the less likely scenario. For today, stay out and wait for dips to 1.3300 - 1.3360 before watching for clear signs of basing before buying. Target 1.3500.

Key G7 Resistance levels: 1.3520

Counter-trend opportunities:BUY between 1.3300 and 1.3350 on signs of basing, stops below 1.3280.

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Thursday May 31 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

USD/JPY

Weekly Trend direction:Bullish

Weekly trend reversal level: 120.80

Strategy: Whilst above the weekly trend reversal level, buy dips to support levelsafter an entry signal.

Medium term: As our view for long term dollar weakness remains intact, we feel that 122.20 will cap rallies and initiate a drop back towards 105.00. Above 122.20 means that the dollar could rally much higher before a medium term top is formed.

Today's trade suggestion: Perhaps the most interesting chart today, as the dollar begins to collapse onto the rising hourly trend line and a sudden break lower is only a matter of time (see hourly chart). We need to break the trend line and close below 121.00 before momentum turns bearish. Remember that 122.20 (reached in January this year) is the highest price since 2003, and whilst below here, the dollar should eventually fail, possibly quite dramatically. However, it is difficult to determine exactly where the dollar will top out, and we will even allow for a brief "spike" through 122.20. Watch for clear signs of topping this week before selling into rallies.

Key G7 support levels: 120.80, 120.20

Counter-trend opportunities:SELL 122.10, stop 122.40, target 119.50

USD/JPY Hourly chart:

USD/JPY Weekly chart:

[forex618]

Daily Currency report for Monday Jun 04 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish, but potential "Doji" reversal

Weekly trend reversal level: 1.3520

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: Price action continues to be terribly boring and there has been little change in price levels for the past three weeks. However, last week's "doji" against the first set of support levels and near the weekly trend line, means that if we can hold above roughly 1.3400, the chance of a new move higher has increased. Either hold longs from 1.3400, or stay out of this market until we get a decisive move one way or the other. Note that weekly ATR has dropped even lower (see weekly chart - around 149 pips) - Don't be lulled into a false sense of security. Large moves are due soon!

Key G7 Resistance levels: 1.3480, 1.3520

Counter-trend opportunities:None

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Tuesday Jun 05 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD
Weekly Trend direction:Bearish, but potential "Doji" reversal

Weekly trend reversal level: 1.3520

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: We managed a 60 pip rally yesterday, which has taken the price to just below the weekly reversal level. This has increased the chance of another move higher, but we need to close above 1.3520 at the very least, before momentum turns bullish. Note the "rounded bottom" formed over the past few weeks on hourly charts, lending more weight to the argument that the euro is to rally soon. Strategy remains unchanged: Either hold longs from 1.3400, or stay out of this market until we get a decisive move one way or the other.

Key G7 Resistance levels: 1.3520

Counter-trend opportunities:None

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Wednesday Jun 06 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bullish

Weekly trend reversal level: 1.3425

Strategy: Whilst above the weekly trend reversal level,buy dips to supportafter an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion:The Euro has maintained its upward momentum and managed to pierce through the weekly reversal level. It has yet to close above 1.3520 and change our weekly trend direction outlook. Expect some whipsawing movement before the Euro makes a decisive move in either direction. Strategy for today: We now look to buy dips to support, with the first levels at 1.3450 and 1.3470. Only buy on clear entry signals with a short term target of 1.3600.

Key G7 Support levels: 1.3450/70

Counter-trend opportunities:None

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Thursday Jun 07 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

USD/JPY

Weekly Trend direction:Bearish

Weekly trend reversal level: 122.20

Strategy: Whilst below the weekly trend reversal level,sell rallies to resistance levelsafter an entry signal.

Medium term: As our view for long term dollar weakness remains intact, we feel that 122.20 will cap rallies and initiate a drop back towards 105.00. Above 122.20 means that the dollar could rally much higher before a medium term top is formed.

Today's trade suggestion:We managed a brief dip below 121.00 yesterday, but sadly not a daily close. Allow for a bit more messy work above there again today, with rallies hopefully holding below 121.45/60.(See chart - Fib resistance, previous trend-line and 200 SMA) Then another leg lower towards 120.00 and then 119.00. Hold short positions, or exit and re-sell at 121.50. First target 121.00 and then 119.00.

Key G7 resistance levels: 122.20

Counter-trend opportunities:None

USD/JPY Hourly chart:

USD/JPY Weekly chart:

[forex618]

Daily Currency report for Friday Jun 08 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish

Weekly trend reversal level: 1.3425

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: At last some movement as the euro plunges to 1.3330, and likely to go further still. Support now lies at 1.3280, and perhaps 1.3220, (Observe trend line and Fibonacci support on the weekly chart) and we will look to take counter-trend positions at these levels. The very bearish "outside week" now forming on the charts suggests that we will only base sometime next week. Watch and wait for clear entry signals at the above-mentioned levels before buying with tight stops. First target currently lies at around 1.3450, where we will look to exit longs and reverse to short on signs of reversal.

Key G7 Resistance levels: 1.3550

Counter-trend opportunities:Buy between 1.3280 and 1.3220 on signs of reversal.

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Monday Jun 11 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish

Weekly trend reversal level: 1.3570

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: Still managing to hold above 1.3320, but likely to go lower this week before basing properly. Support now lies at 1.3280, and perhaps 1.3220, (Observe trend line and Fibonacci support on the weekly chart) and we will look to take counter-trend positions at these levels. The very bearish "outside week" last week suggests that we will only base sometime during the middle of this week. Watch and wait for clear entry signals at the above-mentioned levels before buying with tight stops. If we do not go lower first, then look to sell into rallies to 1.3340/60 today.

Key G7 Resistance levels: 1.3550

Counter-trend opportunities:Buy between 1.3280 and 1.3220 on signs of reversal.

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Tuesday Jun 12 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish

Weekly trend reversal level: 1.3570

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: More signs of basing above 1.3320, but nothing very convincing at this stage. We cannot rule out another dab lower towards better support between 1.3280 and 1.3220, (Observe trend line and Fibonacci support on the weekly chart) and we will be ready to re-buy at these lower levels if seen. The very bearish "outside week" last week suggests that we will only base sometime during the middle of this week and that another dip is still a distinct possibility. Watch and wait for clear entry signals at the above-mentioned levels before buying with tight stops. If we do not go lower first, then look to sell into rallies to 1.3340/60 today.

Key G7 Resistance levels: 1.3550

Counter-trend opportunities:Buy between 1.3280 and 1.3220 on signs of reversal.

EUR/USD Hourly chart:


EUR/USD Weekly chart:

[forex618]

Daily Currency report for Thursday Jun 13 2007

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This is only a guide. Please refer to our specific entry signals for exact entries and stops. Please visit Forex trading signals and instant alerts on Forex major currencies for more information.

EUR/USD

Weekly Trend direction:Bearish

Weekly trend reversal level: 1.3570

Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3667, the multi-year high, and possibly higher still, towards 1.4100.

Today's trade suggestion: Little change: Holding above 1.3280 as we thought it might, and trying to base here once again. The euro should make a better effort here, but we still won't rule out a final dip to 1.3220, (Observe trend line and Fibonacci support on the weekly chart) and we will be ready to re-buy at these lower levels if seen. The very bearish "outside week" last week suggests that we will only base sometime during the middle of this week and that another dip is still a distinct possibility. Watch and wait for clear entry signals at the above-mentioned levels before buying with tight stops. If we do not go lower first, then look to sell into rallies to 1.3370/1.3400 today.

Key G7 Resistance levels: 1.3370, 1.3400

Counter-trend opportunities:Buy between 1.3280 and 1.3220 on signs of reversal.

EUR/USD Hourly chart:


EUR/USD Weekly chart: