Trend Line Analysis: 16/07/2015

Introduction to Trend Line Analysis
Welcome to our newest feature; Trend Line Analysis. Our professional market technician showcases intraday / swing trade setups on a broad spectrum of FX currency pairs. The most effective way to use the setup are:
▪ If indicated price zone holds; consider partial profit taking between 20-40 pips before aiming for the maximum listed target.
▪ If the price zone fails to hold; we likely to see price moving against us. Fail means; the candle closing higher or lower to indicated price zone.

 

Trend Line Analysis: 16/07/2015

EURUSD
To start off; the pair is trading within a possible Bear Flag as can be seen on the Daily Chart. The base of the flag is close by; but there is quite a decent looking support sighted at 10870 handle.

Today we have important releases on EURO and it looks quite heavy on the news front. Starting with Interest Rate followed by ECB Press Conference and 90 minutes later we have Fed Chairperson Yellen testifies. I need not to say caution required but looking from technical point of view; if the pair can stay under 10985-95; would expect a move lower to the Wednesday high to test a decent looking support on the Daily / 8 hr and other smaller time frame coming to 10870.

In short; this level holds the key for the price to either head lower testing the base of the flag and or it is ready to bounce and try to get to the higher grounds. A good bounce shows potential run towards 1.1275-90 in coming days then. This implies; that if and once we have tested 10870; the pair has managed back to close above 10940 and eventually higher to the 2 hr listed resistance.

Below are series of charts; each showing expected moves.

EURUSD – Daily. Shows the Bear Flag and 1.0870 supp
EURUSD – Daily. Shows the Bear Flag and 1.0870 supp
EURUSD – 8 hrs. Shows 10870 been a dual support. The channel in RED Trend Lines may come into play if we get a test of 10870 and a lift off from it.
EURUSD – 8 hrs. Shows 10870 been a dual support. The channel in RED Trend Lines may come into play if we get a test of 10870 and a lift off from it.
EURUSD – 2 hrs. Just a recent break point and as such a resistance on rallies.
EURUSD – 2 hrs. Just a recent break point and as such a resistance on rallies.

USD
It just might sound very bold; but I like to call it ‘The King Dollar’. With the possibility of a rate hike coming this year and Yellen to testify today as well; we just might see USDOLLAR breaking higher to the current resistance tops and march higher.

Talking from a technical point of view and I have used series of charts on various time frames to illustrate my strong USDOLLAR view. In short my strong USDOLLAR view is one breakout away as shown on the 8 hr chart layout.

USDOLLAR – Weekly. Showing a bullish channel that tops if comes into play ends up posting minor new high.
USDOLLAR – Weekly. Showing a bullish channel that tops if comes into play ends up posting minor new high.
USDOLLAR – Daily. Showing a break higher to T5 and retest back to it and holding which is pointing to an eventual break higher up coming.
USDOLLAR – Daily. Showing a break higher to T5 and retest back to it and holding which is pointing to an eventual break higher up coming.
USDOLLAR 8 hrs – We either break above to the black Trend line and lift off; else risk of a deeper retrace.
USDOLLAR 8 hrs – We either break above to the black Trend line and lift off; else risk of a deeper retrace.

AUDUSD
The pair has been in a constant downtrend after posting 0.8090 high and briefly finding support and forming base to 0.7600 handle which was short lived.

AUDUSD been a commodity currency has been hit hard by falling commodity and metal prices along with slowing down in China. At the present it is too early to call in a bottom on the pair; however looking at a possibility that 7270-80 for the day comes in as a decent looking support. Interested in the black Trend Line; which helped in forming the 0.7600 level a supporting base for a short while and if we get another attempt to it; can expect an initial hold to it and as such possibility of bounces.

With Yellen later today; we can see a drop to the intended level incase USDOLLAR surges.

AUDUSD – 8 hrs. A test to 7280-83 and a hold can provide some kind of a relief rally.
AUDUSD – 8 hrs. A test to 7280-83 and a hold can provide some kind of a relief rally.

Got any questions about our Trend Line Analysis? Contact us editor@littlefishfx.com

Disclaimer:
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis. For more information please see our full disclaimer in the footer below.

Posted in Forex Analysis, tagged with on