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Monday, February 18, 2013

Weekly Trading Forecasts (February 18 - 22, 2013)

EURUSD
Primary trend: Bearish
This pair is in a bearish mode, and this is what is expected to continue in the next several trading days. The indicators are showing a Bearish Confirmation Pattern on medium-term charts of the EURUSD. After the support line at 1.3250 has been broken to the downside, the next target would be the supply line at 1.3200. In the short term as well, there could be some rally which would take the price temporarily back to the resistance lines at 1.3400 and 1.3450.


USDCHF
Primary trend: Bullish
The USDCHF pair, while trading in a protracted range (between the resistance level at 0.9200 and the support level at 0.9150), was giving an indication of a northward probability. This was possible because, basically, oscillators gave impression that the bulls are more powerful than the bears. Eventually, the price broke out of the resistance level at 0.9200, to the upside. The signal we have here is ‘buy.’

GBPUSD
Primary trend: Bearish
This is a perpetually weak market – a vivid downtrend. This downward bias is still valid, as the Cable has fallen by several hundreds of pips in this year. There is a Bearish Confirmation Pattern on the Cable, and long trades are not suggested right now. Any expected rally could only take the price back to distribution zone at 1.5600, but the price could reach the accumulation territory at 1.5450.

USDJPY
Primary trend: Bullish
On this market, the major outlook remains towards the north. Recently, the gains that were seen by the market have been forfeited during the current price correction. Oscillators have given some bearish indication (for the present correction carries weight), yet this has not been supported by lagging indicator like the EMA 56. Short trades are not encouraged right now, because further confirmation is needed before an action could be taken. This could be a temporary pullback, and I would be thinking of a long order at the moment.

EURJPY
Primary trend: Bullish
On this cross, the gains that were recently made by buyers have been given up during the extant correction. This correction is quite significant, and should it continue for the next few days, it may render the primary bullish trend useless. For the current northward scenario to be valid, the price ought not to go below the demand zone at 123.00. Should this prove to be true, it would be a great opportunity to buy low in a downtrend; otherwise one would look for short trades. 

Conclusion: Your speculation plans should remain uncomplicated and stuck to. You might want to imitate those who are already successful since there cannot be better trading ideas than the extant ones. It could do, when it comes to attempts to bypass the grim experiences of undisciplined traders. Continue to add to your knowledge. Do not underrate the role of a correct trading mindset, and seriously speaking, think of risk control when trading. Speculation comes with negativity sometimes. Negativity does not mean you are not good.  There is no speculation method that does not entail negativity, and this should not discourage you on our way to financial freedom. Imbibe information from the markets repeatedly.

This article is concluded with the quote below:

“I just warn people not to overwhelm themselves, stick to the basics.” – Chris Cashman

1 comment:

  1. Pretty good general trends for this week, most of them seem to be pretty accurate. The GBP/USD has had an awful week so the predictions seem pretty accurate.

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