The following are the most recent pieces of Forex technical analysis from around the world. The Forex technical analysis below covers the various currencies on the market and the most recent trends, technical indicators, as well as resistance and support levels.
Forex Technical Analysis
Forex Technical Analysis
The downtrend continues with no letup for any of the four technical indicators on the daily chart of the EUR/USD. Bollinger Bands have the price at the bottom, Full Stochastics are scraping the bottom, StochRSI is crawling at the bottom and RSI is rolling threw the mud.
EUR/USD is trading at levels where several LT cycles should provide support. In our chart both the black and dark purple cycles show channel targets where we made lows overnight, and the dark red LT cycle has its 2nd channel extension target just above the lows. If we continue lower, there is LT technical support at 1.3750.
EURUSD negative trend is extended by low bearish movement below support barrier. Even though bears are sliding downside, lack of confidence can initiate bulls price recovery. At the moment, look for waiting option with selling opportunities, but it should be done with a care.
Ready and wide to accept the wilds of the EUR/USD pair, the Bollinger Bands have had the price in their lower regions for many days. Each of the three remaining indicators on the daily chart have been directed down by the dollar's rise to riches. Full Stochastics, StochRSI and RSI, each down and asking any market mover that will listen or bit of news for help up.
EUR/USD reached our ST 4th channel extension target at 1.3945 overnight, bottoming at 1.3936. This should complete the ST down-cycle, and the angled gray cycle shown also completed four channels at that level, reinforcing the validity of the bottom. Whether we merely correct the ST down-cycle now or begin a new MT up-cycle remains to be seen, as we have conflicting signals in the LT.
The Bollinger Bands still open wider to accommodate the EUR/USD's march into the depths of the dollar's unforeseen ride to power. Each of the other indicators, Full Stochastics, StochRSI and RSI are at the bottom of their windows and asking some bit of news or group of market movers to lift them from the depths. On the 28th that lift will not come in the form of news, the heaviest items for this pair today cancel each other out.
Today the Bollinger Bands are even wider, ready for more movement. Each of the other three indicator windows, Full Stochastic, StochRSI and RSI is ready for the EUR/USD pair see some upward movement.
After trading sideways most of Monday, EUR/USD has dropped down out of consolidation after reaching our 4th channel boundary at 1.4179 (light blue). A new ST down-cycle is likely forming, with tentative projections at 1.4036, 1.3999 and 1.3962 (orange). If we correct up higher than resistance at 1.4110, then those targets will change.
Each of the hottest news items for the Euro and U.S. Dollar on the 26th are forecast to favor their respective currency. That will cancel any benefits that these news items might have had for their respective currencies for the day. Bollinger bands on the EUR/USD's daily chart are spread wide and foretell of potential volatility. That volatility, if the Full Stochastic, StochRSI and RSI have their wishes granted will be come in the form of upward movement.
EURUSD bulls did bounce off by support level, however while trend line is still valid and not broken, bears are in better place for now. According to the recent bulls movement, lack of strength can initiate another bears downside slide. At the moment, waiting action with selling possibilities are better options to look into.
The Kiwi has had a phenomenal ride against the Greenback for nearly a year. It is the single largest percent gainer amongst the G-7 over that period of time. The Dollar has gained some strength as of late and commodity currencies have been selling off as China acts to curbs excess liquidity in the market. Thus, since January 14, 2010 the NZD has been the biggest loser against the USD, giving up 2.81%
Uncomfortable at the extreme lows relative to recent weeks, the EUR/USD has slowly been crawling up on the daily chart for five days. Bollinger Bands, Full Stochastics, StochRSI and RSI are still low and ready to help with the lifting work. The Existing Home Sales news release will add extra impetus at 10:00am est. The dollar seems to be on another death march.
EUR/USD corrected up to our 1.4183 level Friday, and subsequently pulled back to 1.4123. A further pullback is possible, but will likely hold the 1.4086 or 1.4066 support levels
EURUSD wide trading range is formed now between support and resistance barriers, trend remains negative. Even though bulls are trying to go for a reversal movement, bearish situation is strong enough to drag and decline price further downside. At the moment, waiting action is better to take while bulls calms down.
No heavy hitting news releases today, forces the Bollinger Bands, Full Stochastics, StochRSI and RSI to determine the fate of the EUR/USD. In stoic, black and white terms, the Bollinger Bands want the price to go up, the Full Stochastics want the price to go up, the StochRSI wants the price to go up and the RSI wants the price to go up.