CURRENCYCURRENT BIASPOTENTIAL STRATEGY
EUR/USD (Medium Term)
Watch for an opportunity to go short near the bearish trend line or long near the bullish trend line.
GBP/USD (Medium Term)
Sell GBP/USD at 1.5902. Stop at 1.6010. Profit target at 1.5716.
USD/JPY (Medium Term)
Sell USD/JPY at 80.02. Stop at 80.39. Profit target at 79.46.
USD/CHF (Medium Term)
Watch for an opportunity to go short near the bearish trend line.
USD/CAD (Medium Term)
Watch for a new opportunity to emerge within the context of one of the bearish trend lines. We will also watch for the right opportunity that would allow us to go short at the triple top at 0.9947.
AUD/USD (Medium Term)
Watch for a new opportunity to emerge related to the possible channel.
NZD/USD (Medium Term)
Watch to see if an opportunity emerges related to either trend line.
  • EUR/USD
  • GBP/USD
  • USD/JPY
  • USD/CHF
  • USD/CAD
  • AUD/USD
  • NZD/USD
EUR/USD (Swing Forecast)
Potential Strategy
Watch for an opportunity to go short near the bearish trend line or long near the bullish trend line.
What is the trend?Neutral
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy

Weare looking to go short near the bearish trend line on the Weekly Chart or long near the bullish trend line on the 8hr Chart.  Both trend lines have four points of contact and have become very strong.  This is an excellent example of multiple trends forming on different time frames for the same currency pair.  Furthermore, this is an example of why we need to have a flexible mindset because we could look to trade in either direction depending on which trend line is tested next.

Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2N/AN/A
Resistance 1Bearish trend lineSee Weekly Chart
Current Price1.2529
Support 1Bullish trend lineSee 8hr Chart
Support 21.1876Significant low on Weekly Chart
Support 3N/AN/A
  • Weekly Chart - Watch for an opportunity that would allow us to go short near the bearish trend line.
  • 8hr Chart - Watch for an opportunity that would allow us to go long near the bullish trend line.
GBP/USD (Swing Forecast)
Potential Strategy
Sell GBP/USD at 1.5902. Stop at 1.6010. Profit target at 1.5716.
What is the trend?Down
What is this pattern?Bearish Gartley - See all chart patterns
Why is this significant?Multiple levels of resistance have converged near our entry at 1.5902.
What other indicators or Fib Levels support this thesis?N/A
Reason for Strategy

We have now reached the entry of the bearish Gartley pattern on the GBP/USD Daily Chart.  The levels of convergence at point D are 61.8% of XA, 127.2% of BC, and AB=CD.  The Weekly Chart outlook is neutral related to this trade idea since there are reasons for both support and resistance.  Otherwise, this is a straightforward setup that minimizes the spread's impact on our edge.

Also note that we have updated the profit target to 1.5716.

Trade Invalidation
Trade has entered.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2Bearish trend lineSee Weekly Chart
Resistance 11.5902Gartley resistance
Current Price1.5828
Support 11.571638.2% of CD
Support 21.5330General support on the Weekly Chart
Support 3N/AN/A
  • Weekly Chart - A long term descending triangle is emerging.
  • Daily Chart - Bearish Gartley; sell at 1.5902.
USD/JPY (Swing Forecast)
Potential Strategy
Sell USD/JPY at 80.02. Stop at 80.39. Profit target at 79.46.
What is the trend?Down
What is this pattern?Bearish Gartley - See all chart patterns
Why is this significant?Multiple levels of resistance are converging near our short entry at 80.02.
What other indicators or Fib Levels support this thesis?38.2% of YZ on the Weekly Chart.
Reason for Strategy

A bearish Gartley pattern is emerging on the USD/JPY Daily Chart.  The levels of convergence at point D are 78.6% of XA, 127.2% of BC, and AB=CD.  The trade idea would also enter at 38.2% of YZ, which means we would probably going short along with the most relevant trend.  Furthermore, the idea enter close to 80, and round numbers can add extra resistance in this scenario.

Trade Invalidation
The trade idea is invalid if the pair drops to 78.21 before reaching our entry.
Support & Resistance Levels
Resistance 380.9150% of YZ on the Weekly Chart
Resistance 280.1438.2% of YZ on the Daily Chart
Resistance 180.02Bearish Gartley
Current Price78.70
Support 1N/AN/A
Support 2N/AN/A
Support 3N/AN/A
  • Weekly Chart - Trade idea would enter just below 38.2% of YZ.
  • Daily Chart - Sell USD/JPY at 80.02.
USD/CHF (Swing Forecast)
Potential Strategy
Watch for an opportunity to go short near the bearish trend line.
What is the trend?Down
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy

The USD/CHF has continued to drop over the past week, which solidified the 8hr Chart bearish trend line and definitely broken the Daily Chart bullish trend line.  Therefore, we will now watch for a short term rally that would allow us to go short near the bearish trend line.

Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2N/AN/A
Resistance 1Bearish trend lineSee 4hr Chart
Current Price0.9583
Support 1N/AN/A
Support 2N/AN/A
Support 3N/AN/A
  • Daily Chart - Broken bullish trend line.
  • 8hr Chart - Bearish trend line.
USD/CAD (Swing Forecast)
Potential Strategy
Watch for a new opportunity to emerge within the context of one of the bearish trend lines. We will also watch for the right opportunity that would allow us to go short at the triple top at 0.9947.
What is the trend?Down
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy

The USD/CAD broke below the bottom of the ascending triangle on the 1hr Chart.  The top of the triangle is still relevant because it is a triple top near 0.9947.  Last week we said that it was more likely for the bottom of the triangle to break because there were only two solid points of contact, so this move down isn't a big suprise.  The drop down went all the way to the point that began the bottom of the ascending triangle, where the pair saw new support.  Hopefully this short term support pushes the pair up so that we are able to go short near the 0.9947 triple top or near one of the two bearish trend lines.

Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2Possible bearish trend linesSee Daily Chart
Resistance 10.9947Triple top (top of ascending triangle)
Current Price0.9892
Support 10.9841New double bottom on the 1hr Chart
Support 2N/AN/A
Support 3N/AN/A
  • Daily Chart - Potential bearish trend lines.
  • 1hr Chart - Ascending triangle broke, but the triple top is still a key level to watch.
AUD/USD (Swing Forecast)
Potential Strategy
Watch for a new opportunity to emerge related to the possible channel.
What is the trend?Neutral
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy

The previous wedge doesn't look logical anymore, so we have drawn a blue line below the Daily Chart price action that is parallel to the trend line on the top.  The bottom trend line usually drives the price action on a bullish channel, but it wouldn't be a shock if there is support at the parallel line since the top of the possible channel is so strong.  If the blue parallel line provides support, then we may have a strong channel to trade.  However, if the pair breaks below the blue parallel line, then we know that there can no longer be a wedge or channel. 

Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 31.1080Point 0 on the Weekly Chart
Resistance 21.071778.6% of 01 on the Weekly Chart
Resistance 1Top of possible channelSee Daily Chart
Current Price1.0347
Support 1Possible bottom of channelSee Daily Chart
Support 20.970178.6% of 1A on the Weekly Chart
Support 30.9387Point 1 on the Weekly Chart
  • Weekly Chart - 78.6% of 1A continues to provide strong support.
  • Daily Chart - Possible bullish channel.
NZD/USD (Swing Forecast)
Potential Strategy
Watch to see if an opportunity emerges related to either trend line.
What is the trend?Neutral
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy

The NZD/USD broke below the potential bullish trend line on the Daily Chart.  Therefore, it is likely that this trend line is no longer relevant.  Even if the pair rallies back above the bullish trend line, it still could be weeks before another successful test has the chance to emerge. 

On a short term basis, a bearish trend line has formed on the 1hr Chart.  However, this trend line is so short term that we will have a very difficult time finding an opportunity to go short near this trend line.  There could be a potental opproutnity to trade a break out, but even that will be tough with a trend line that isn't even 200 pips.  Like many other pairs, we basically will have to sit tight until volatility returns.

Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2N/AN/A
Resistance 1Bearish trend lineSee 1hr Chart
Current Price0.8006
Support 1Possible bullish trend line (probably broken)See Daily Chart
Support 2N/AN/A
Support 3N/AN/A
  • Daily Chart - Possible bullish trend line probably is no longer relevant.
  • 1hr Chart - Short term bearish trend line.

DISCLAIMER: The information provided below should not be relied upon as a substitute for extensive independent research before making your investment decisions. FX360 .com is merely providing these views for your general information. The information presented in the views below does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. We generally encourage readers and clients not to risk more than 3% of their account on any single trade. In addition, any projections or views of the market provided by the authors may not prove to be accurate.

FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com

NOTE: All trade ideas on FX360.com are hypothetical. FX360.com has not placed these ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.


The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Futures & Forex, Ltd. (“GFT Markets”) and FX360.com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of GFT Markets, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. GFT Markets and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.
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TRADE IDEAS

  • Trades to Watch
  • Trades in Progress
currency trade idea
EUR/AUD
Medium term



Buy Buy at 1.3240
Stop at 1.317
Target at 1.337
There are currently no trades in progress.
These are hypothetical trades and should not be relied upon as a substitute for independent research.

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