Trend Line Analysis : 31/07/2015

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.

 

There is a lot to be digested from roar back on the USD after looking toothless 2 days prior to the FOMC  and forcing EURO under 1.1000 handle Post FOMC and to printing new highs on the Swiss Franc. The GBP however managed to hold it’s ground on the back ground of possible rate hikes to be seen in 2016.

While the FOMC came out less hawkish than the markets were anticipating; nevertheless the possibility of a near rate hike on the USD is providing fuel to the USD bandwagon for now.

We tried relentlessly to get some decent setups get going; getting lucky on a few while most were missed out by few pips, before we saw them hitting some prime targets we were looking at.

The crosses and especially the GBP crosses were The Sultan of Swings and we tried catching them; though were right on the swing points but managed 1 or 2 and missed out on the most. We have our interest on the GBP crosses intact and are on the lookout for some prime levels to get going on them.

EURAUD

We looking to buy the pair if it gets a test lower to 492X zone for a possible move towards 5050 with potential run to test mid 51XX.

EURO is still pressured due to the intensive reforms IMF and ECB wants Greece to take to ensure the bailout carries on. AUD on the other hand is pressured by the dovish RBA and we are expecting some swings on the pair with test of T1 trend line ideally finishing a smaller correction to provoke bounces preferably to our listed targets.

Technically speaking T1 trend line comes in as a decent looking support zone along with been a possible breakout trend line and we will look to long off it for a possible move to 5050 with potential run higher towards T2 trend line.

EURAUD 4 hrs - T1 looks decent supp to try longs for 5050 with potential run to T2
EURAUD 4 hrs – T1 looks decent supp to try longs for 5050 with potential run to T2

GBPJPY

We are using a 2 hr chart and have interest to see a test of T2 trend line and a hold to enter longs for an initial 50-70 pips with a potential test into 195 handle.

We feel there is plenty of upside to be seen on GBPJPY and as been suggesting past 2 weeks to use retraces to get in longs till we reach ideally to 196.10-20 zone.

Hence going forward; we feel 192.9X is a recent breakout trend line and if can get a retest to it; can be a decent swing point to go long considering the level holds out for a test around to 195 handle.

GBPJPY 2 hrs - Looking to buy a T2 test for a push higher to 195.XX
GBPJPY 2 hrs – Looking to buy a T2 test for a push higher to 195.XX

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