forex trading

Sunday, October 5, 2014

Daily analysis of major pairs for October 6, 2014

Last week, the Cable dropped by over 270 pips, going below the distribution territory at 1.6000, and closing at 1.5971 on Friday (October 3, 2014). The Bearish Confirmation Pattern is now very strong and the price could test the accumulation territory at 1.5900 this week.

EUR/USD: This pair has continued to be weak, breaking the market line at 1.2550 to the downside and closing below it. This week, the price may easily target the support line at 1.2500: it may even go below it. However, there are also possibilities that attempted rallies may cause the price to reach the resistance lines at 1.2600 and 1.2650 respectively.

USD/CHF: As long as the USD is strong and as long as the EUR/USD is weak, this pair has nowhere to go except upwards. The pair moved upwards by over 170 pips last week; and it is now threatening to test the resistance level at 0.9700. Should the market remain strong enough, the resistance level could be breached to the upside, going towards another resistance level at 0.9750.

GBP/USD: Last week, the Cable dropped by over 270 pips, going below the distribution territory at 1.6000, and closing at 1.5971 on Friday (October 3, 2014). The Bearish Confirmation Pattern is now very strong and the price could test the accumulation territory at 1.5900 this week.

USD/JPY: This is a bull market, and the sharp but transitory drop that occurred in the market last week simply gave a clean opportunity to go long when things when on sale and in the context of an uptrend. As long as the Greenback is strong, this currency trading instrument would be going upwards. It may reach the supply level at 110.50 this week.

EUR/JPY: This market is weak because of the weakness in the EUR itself. Further bearish move may cause the price to test the demand level at 136.50. On the other side, a rally may happen this week, taking the price towards the supply zone at 138.50.

Performed by Azeez Mustapha,

Analytical expert

www.instaforex.com

InstaForex Companies Group

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

Friday, October 3, 2014

Weekly Trading Forecasts on Major Pairs (October 6 - 10, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

The EUR is now one of the weakest currencies among the majors, while the USD is the strongest currency among the majors. Hence, the EURUSD dropped sharply again last week, dropping below the resistance line at 1.2550. Further downwards movement may cause the price to test the support lines at 1.2500 and 1.2450. However, it is very much likely that the EUR would begin to rally before the end of this week, which may eventually cause the aforementioned support lines to end up aiding the bulls.

USDCHF

Dominant bias: Bullish

The movement of this market is largely determined by what is happening to the USD and the EURUSD. A serious rally in the EURUSD may result in a sharp pullback on the USDCHF, which may make it to test the support level at 0.9550; whereas a continuation of the weakness in the EURUSD may cause the USDCHF to test the resistance level at 0.9750. But it should not be thought that the USD would reach parity with the CHF.

GBPUSD

Dominant bias: Bearish

The Cable dropped by over 270 pips last week, closing below the distribution territory at 1.6000. The price may reach the accumulation territory at 1.5900, which could be easily test this week – it could even get breached to the downside. On the other hand, the distribution territories at 1.6050 and 1.6100 may be targeted by the bulls.

USDJPY

Dominant bias: Bullish

This is a very strong currency trading instrument, forming a Bullish Confirmation Pattern in the market. There was a sharp pullback in the market last week, brought about by transitory stamina in the Yen. Eventually, the sharp pullback proffered an opportunity to go long when things went on sale in the context of a downtrend. The current rally in the market could lead the price towards the supply level at 110.50.

EURJPY

Dominant bias: Bearish

Since this market tested the supply zone at 141.00, it has come down by over about 400 pips. The demand zone at 137.00 has been tested, and the demand zone to watch this week is at 136.00. Should the EUR rally significantly enough, there may be a bullish run in this market, which could make become a threat to the current bearish outlook.

This forecast is concluded with the quote below:

“Information is power. Most big profits are gained through one person knowing something that most other people don’t.” – Skip Archimedes

Source: www.tallinex.com

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

Wednesday, October 1, 2014

Monthly Forecast on Gulf Keystone (October 2014)

Gulf Keystone stock (LSE:GKP) is still a bear market. The bearish outlook has been strengthened and buyers have often been deceived by false rallies which proved to be bogus signals. The futile bullish attempts have failed to make any significant impact on the market, for the bearish sentiment has overwhelmed the bulls. You cannot make a mark on a river by taking a bucket of water from it. You cannot make an impression on a lake by striking it with a sword.

It is indicators that make it easier for us to see a confirmation of a bias. In the chart, the ADX period 14 is around the level 30, showing a considerable strength in the market. The DM- is above the DM+, meaning that the sellers have upper hands. Also, the MACD (default parameters) has both its histogram and signal lines below the zero line. This fact depicts a Bearish Confirmation Pattern in the chart; and the only sensible thing to do is to go short.

At times, the market moves slowly and steadily – the periods when the market is flat and trend followers are subjected to whipsaws. At times, the market moves in a determined mode. The determined mode on Gulf Keystone is bearish and the price would soon test the support level at 60.00.

This forecast is ended by the quote below:

"If you watch the market all day long you get so much information that you lose your common sense." -- Old Trader

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Travelers Companies: Shares to rally for the rest of 2014

Traveler’s Companies shares (NYSE:TRV) are expected to rally again and become strong for the rest of the year 2014. This has been a strong market for most of this year, plus deep corrections have been followed by nice rallies.

For this analysis, the EMA 21 and the Williams’ % Range period 20 are used. The price is currently around the EMA 21 and when it goes above it, that would be the period the buyer would want to take action. The Williams’ % Range period 20 is currently in the oversold territory, and when it leaves the territory, the bullish signal of the upwards sloping EMA 21 would be confirmed.

The transitory pullback here is not a ‘sell’ signal. Rather, it is a ‘buy’ opportunity. Irrational speculators may quickly sell their shares because of a transitory pullback. It is advisable to follow the line of the least resistance, but this is best done when losers have been forced to accept their negativity. This would shield you from being forced to cover your positions as well. When irrational traders are forced out of the markets – nursing their wounds – some professionals may also be forced out with them.

Traveler’s Companies market price may reach the distribution territory at 100.00 before the end of this year.

This forecast is ended by the quote below:

“Cynics aren't ready for the unexpected. They view setbacks as evidence that the world is corrupt. They secretly believe that it's impossible to make money in the markets and they are looking for evidence to throw in the towel.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha