Hello traders, this is the 12.30 GMT intraday technical view

EurUsd continued to make higher high and higher lows for the most part of Thursday’s session and in today’s trading hours until rumors started about bank losses in Uk that triggered a change of focus towards the US dollar, although the pair lost the points gained previously in the Asian and European trading hours it has found support close to the 61.8 Fib Line of the last move up and from there it started to slowly move higher trying to get back above 1.4700.

GbpUsd failed to reach our projected target of 2.1185 and although it made higher highs and higher lows on the 1hr timeframe, as seen in the chart below, the bulls lost some of their strength. When the Uk bank rumors got out cable lost more than 100 points in a matter of minutes and only stopped just below the 2.1000 support level. At the moment in the market there is increased volatility and we advise caution until the rumors either get confirmed of proved to be just that, rumors.

EUR/USD Technical View

Euro continued its north trip, although yesterday’s price action formed an inside bar we have seen the pair take Wednesday’s high by a few pips to establish a new one at 1.4735. Once above the 1.4700 the bullish momentum has slowed down as many bullish traders took profits and the bears had new reasons to open new trades, the area just above 1.4700 represents a resistance zone and breaking higher might take some time. Looking at the daily chart below we can see that the pair is in overbought territory and a repositioning of the players is not out of the question, with that in mind if the pair slips below 1.4700 we should change focus towards the 1.4600 area which combined with an up sloping trendline should provide consistent support.

Resistance Levels

• 1.5000– round number
• 1.4728 –Nov 7th High
• 1.4500- round number

Support Levels

• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

(more…)

Hello traders, this is the 13.00 GMT intraday technical view

EurUsd reached it’s projected target in Wednesday’s session calculated using Fibonacci Expansion at 1.4729, after that it lacked enough strength to stay above 1.4700, it retraced to around the 0.50 Fib level and has traded around that level in a 50-60 points range until now. The pair is trying to figure out a direction for the rest of the session but the bullish should prevail, as the market conditions haven’t changed while the ECB decided to hold rates.

GbpUsd traded around the 2.1000 level for most of the Asian and Uk session and only prior to the BOE rate announcement it started to move higher and after another retest of the 2.1000 support level minutes before the announcement it pushed higher and printed a new high at 2.1085. As seen on the chart below,on the 1hr timeframe the pair formed a bullish flag formation that has a target calculated with Fibbonacci Expansion at 2.1185.

EUR/USD Technical View

EurUsd printed, again, a new record high on Wednesday at 1.4728 after an almost 200 points gain based mostly on a piece of fundamental news regarding China’s currency reserve. The pair broke above a trendline that for a short period of time looked like it might offer some resistance and once it got above EurUsd never looked back while pushing higher. WE saw a retracement in the second part of the day to the 0.50 Fib of the daily average but that just gives buyers a better place to go long, aiming again for the current YTD high at 1.4728. We have to be careful in the next few hours as there is another piece of news coming out today just before the start of the NY session, the ECB interest rate announcement that move the price substantially.

Resistance Levels

• 1.5000– round number
• 1.4728 –Nov 7th High
• 1.4500- round number

Support Levels

• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

(more…)

This is a video summary of the Live Forex Trading Room session on November 7, 2007.

Today’s Summary, by Sunil Mangwani:

Out of intraday trade setups today, we traded just one. The Yen pairs were going crazy in the Asian session, and have been dropping like a stone. We managed to catch the GBP/JPY - and did not anticipate such a large move.

The Divergence was certainly there - a Bearish Divergence. We entered our Short trade based on our Fibonacci Fan levels, and price went far beyond the expected target levels. We did not ride the price all the way down, however. This trade was a good example in the room of the effectiveness of Fibonacci Fans in general, and how to use them. (more…)

Hello traders, this is the 12.30 GMT intraday technical view

EurUsd exceeded our expectations today, while it has moved considerably in the Asian session a continuation of the move throughout the UK session was not expected; the pair just pushed higher when the European traders took control and we witnessed a new all time record high being made at 1.4703. At the moment the bullish momentum has slowed down a bit while markets wait for the US session to start, but the overall bullish sentiment is still there and we could see at least a retest of the 1.4700 area in the afternoon.

Cable also benefited from the weak US dollar and surged higher and touched the 2.1000 target we mentioned; although the move happened sooner than we expected it was in line with the current market conditions and our bullish sentiment. After breaking through 2.1000 we saw the pair reaching a high of 2.1055 from where it started to slip lower, at the moment we are trading around the 2.1000 level now turned intraday support, if the pair fails to get below it we could see another push towards the highs in the US session.

EUR/USD Technical View

Euro continued to push higher Tuesday and in today’s Asian session, it printed a new record high at 1.4665 just before the open of the European markets. The pair’s bullish momentum just seems to increase as it goes higher, many traders are looking at 1.5000 as a long term target for longs. On the smaller timeframes we have to take into account that the pair has already covered 110 points today and that is above its daily average so we can expect a small retracement towards the 1.4600 level which is also close to the 0.50 Fib retracement of the 1.4550/1.4665 move. A retest of the 1.4600 could give the pair just enough breathing space to resume the up move but a failure to hold the price above will shift focus towards yesterday high at 1.4575 now a support level followed closely by the 1.4550 area.

Resistance Levels

• 1.5000– round number
• 1.4665 –Nov 7th High
• 1.4500- round number

Support Levels

• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

(more…)

This is a video summary of the Live Forex Trading Room session on November 6, 2007.

Today’s Summary, by Sunil Mangwani:

There was one intraday trade taken today which went off very well. I would like to concentrate on this trade today and the process which gave us the necessary confirmations to enter the market correctly.

It was a Yen pair on which we traded, but thats not how the trade started out. Lets have a look at the sort of correlations we were looking for.

We started off analyzing the EUR/USD. This pair has been in a bullish intraday phase, and we plotted some 1-2-3 Formations and applied our Fibonacci Expansions. Based on the Expansions, we knew that a certain level has yet to be satisfied. We were thus bullish on the EUR/USD, expecting it to go up. (more…)

EurUsd formed a triangle on the 1hr timeframe on Monday afternoon(see chart below) and it broke out of that triangle with fury in the Asian session, the momentum pushed the pair towards the yearly high at 1.4530. In the most part of the UK session the pair traded just below the high in a small consolidation range and right as we write this intraday commentary EurUsd printed a new record high at 1.4555 and bullish momentum keeps building up.

Cable found support around the 2.0800 area yesterday, and it moved higher in the Asian session until it found resistance at a down sloping trendline. Looking at the 1hr timeframe the pair seems to be forming a triangle as it has already touched the resistance trendline two times and is now slipping lower. Usually this triangle pattern is a continuation pattern and considering the overall bullish sentiment, a breakout above the 2.0880 will be a clear sign that the up trend is still valid.

EUR/USD Technical View

Euro resumed the up trend after it found support around the 1.4450 area yesterday, the pair traded within a 20-30 points range in Monday’s US session and it pushed higher at the start of the Asian session. We have touched the record high at 1.4530 and at the time of writing this commentary the momentum On intraday charts has slowed down a bit which was to be expected after the pair broke through the 1.4500 resistance level. The pair’s bullish bias is still strong and on the mid term we expect a continuation of the move north, establishing new higher highs; on the shorter timeframes we can expect a retest of the 1.4500 level now turned into resistance, a level which at the moment is also the 0.50 Fib retracement liine of last nights move north from 1.4465 to 1.4530.

Resistance Levels

• 1.5000– round number
• 1.4526 –YTD High
• 1.4300- round number

Support Levels

• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

(more…)