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.
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If the Euro's Minimum Bid Rate stay's the same, the other two powerful news items should bring the EUR/USD easily down
Range bound in recent weeks, the EUR/USD's daily chart will stay that way with the two heavy news items released today. These items will weight the USD side of the pair and bring it closer to 1.3500 once again. The StochRSI has been flying high and is ready to put the RSI it foretells the direction of, down. The Bollinger Bands have the price above their centerline and the Full Stochastics are at their centerline. The technicals are comfortable with today's news releases taking this pair down.
Bollinger Bands, Full Stochastics and RSI band together to outvote the StochRSI window on the EUR/USD daily chart. This should mean this pair will have a up day. Keep your stop-losses tight because the trend does not favor the technicals. I am only looking at one day though.
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EUR/USD dropped sharply yesterday, confirming the end of the ST up-cycle (light blue) and creating a ST down-cycle (orange), that may already be complete with three channels.
The technicals have triumphed and with the help of today's bad news for the USD side of the EUR/USD, this pair will rise further. Each indicator is at or below it's centerline, except for the more volatile StochRSI, which means traders might be growing tired of this very long downtrend, so you might be able to isolate, down, out of today's direction for the EUR/USD.
As widely expected the FOMC maintained overnight lending rates at 0.25%. For first timers, the FOMC or Federal Open Market Committee is an entity of the US central bank or Federal Reserve. This body is responsible for the management of monetary policy and Interest rates and is closely observed by players in the financial world.
With both of the heaviest news items for the EUR/USD canceling each other out, with good and bad news for the Dollar, let's turn to the technicals for some insight into how the market movers might justify their trades today. Only the StochRSI is high, each of the other indicators is asking yesterday's rise to continue, the trend will likely override that request.
EUR/USD got right up to our 1.3628 resistance area yesterday, and subsequently dropped to test the 1.3444 low. There is relatively strong support at this low, but if we continue lower, the LT flat cycle’s 3rd channel extension target (black) and the LT angled cycle’s 4th channel extension target (dark purple) coincide at around the 1.3333 area.
The hardest hitting news items for the EUR/USD pair are canceling each other out. Turning then to the technicals, they are all clearly far below their center lines, except for the StochRSI.
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New Home Sales data is ready to devastate the recent new low around 1.3450 with wonderful news for America's dollar. Only the RSI of the four technicals put to the daily EUR/USD chart is far above it's centerline and clearly ready for a easy ride downward but that news will easily overpower any lagging technical indicator.
EUR/USD very nearly reached an important target on Friday, followed by a rally to resistance at 1.3653. Overnight we briefly rallied above that level, but quickly dropped lower, as the euro tries to find a bottom to rally off of. We may find support today at the 1.3535 area, or test the bottom at 1.3444. Beyond that, there are targets at 1.3333 and 1.3310. A rally above 1.3691 should find resistance at 1.3790.
Yesterday’s price action increases the chances of the MT up-cycle having completed at 92.14 (light green) with three channels-plus-extension. We fell short of the LT target, which would come in at 92.43 today, but it remains a possibility if a rally takes hold.
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The consistent angle of the Bollinger Bands has been the only unceasingly correct directional indicator in the recent downtrend for the EUR/USD on the daily chart. Full Stochastics, StochRSI and RSI have all waned in their efforts to give us lagging truth. The trend and the B.B.s still direct us downward.
With the trend able to bend the daily chart's Bollinger Bands, Full Stochastics, StochRSI and RSI, it best to trade with it. Today's largest news item for this pair also helping the greater trend, should also help convince you to trade with it, today at least. The technical indicators give a idea about the sentiment of traders, they do not tell the future. They are often based on averages and will creep back to their centerlines even though the trend has long been moving up or down.