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 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.
The big news for the day ending (26/08/2015) possibly is that GBPUSD failed to maintain higher to 1.5700 handle and EURUSD falling back and likely closing under to 1.1400 handle. Both can fall some more and that can cause weakness on their crosses espeically against the NZD / AUD & the CAD.
Like to sell the break which is similar on the 2 and the 4 hrs chart with a difference of 30 odd pips. I would go with the 4 hrs break point.
There seems to be a big vacuum that needs to be filled out and the drop can be a faster one. Alternatively can look for the 4 hr support to buy back from T3.
Before I can submit; it’s already getting broken. As such if we close the day under to the 2.1760 supp; we can use the swing back to the 2 hrs support now to be resistance to enter shorts from 2.179X. If aggressive can look to short 2.1765-70 as off the 4 hr layout incase we closing the day under to it.
The pair is looking fragile and as such will look to sell the break of T5 for a T4 possible test.
EURUSD made a run to the Bear Flag top which was posted numerous time here and the price failed to the top. It has been falling since making a run to the 1.1700 handle and today likely to get a close under to 1.1400 important handle. This suggesting more drop on the EURUSD and likely fall to make way to 1.118X zone where the correction might end. However the base of the flag comes in way lower.
This fallout under 1.1400 handle has put EURUSD on defensive mode and if we get to sell out on it; EURCAD likely to fall under the listed support and make it down to the listed target. Alternatively can look to buy off the T4 for some healthier bounce back.
Here is the GBPUSD chart. I will call it a monster chart. I see no reliable support under to 543X zone. Can opt to buy off it and if there is a healthy bounce; it can find its way to 554X handle which comes in as a decent spot to try short.
This has been a big squeeze here and it started when the pair failed to hold over 1.5720 handle.
Can look to buy off the last known decent support to come; but if it is to be broken a stop and reverse will come in handy. Any decent pullbacks will find it tough heading higher to 554X zone and as such can be used to set shorts on the pair in anticipation of a bigger drop coming on the pair.
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