Sunday, November 20, 2011

Weekly Forecast (FX)

Weekly candle: bearish
Daily candle: potential reversal on Thursday and Friday, but selling pressure hit hard when EUR/USD tries to break above 1.3600, highest 1.3613. Close at 1.3514.

4 Hour chart: bearish

Daily entry: Short with initial shadow.

Trading Plan:
Short 1.3550, SL 1.3600 (50 pips),
TG: 1.3370 (180 pips).


I was bullish on GBP/USD since two weeks ago and my monthly outlook was to wait for GBP/USD to breakout to the top and hit 1.6350.

However, market consolidated for 2 weeks (week 31/10, and week 7/11), resisted at 1.6160 and supported at 1.5860.

Finally last week, GBP/USD broke below major support 1.5860 and last traded at 1.5794.

It is not as per what I have expected the market to be... and so... I choose to trade the opposite direction === to sell GBP/USD the following week :)

The support we identified 1.5860 has turned to resistance and market should find current support at 1.5700.
Breaking below this current support 1.5700, GBP/USD will fall to 1.5560.

Daily Trading:
Short 1.5830, SL 1.5870 (slightly above the identified resistance),
TG1: 1.5700.
TG2: 1.5560.

No comments:

Post a Comment