IF you’re looking to see why the C2FX Forex trade sheet is better than a random forex signal service, be sure to check out our website.

As mentioned in several previous posts, we will be changing the format of this website and we’re going to expand to include internet marketing and will become highlight the lifestyle of living off the internet. Watch for that coming soon and good luck with trading.

EUR/USD

W1 – 1.2500
M1 – 1.2300
Q1 – 1.1800

The EUR/USD has turned to the downside and look for a potential continuation to the downside – with some retracements, of course. In the longer term (months), look for a potential price point of 1.1800 and below. However, keep in mind we will not see a straight progression to the downside forever so watch for retracements to the upside. Use your Fibonacci analysis and support and resistance numbers to help with retracement levels.

GBP/USD

W1 – 1.6050
M1 – 1.5600
Q1 – 1.5000

The GBP/USD looks to also be potentially turning to the downside and it looks like the 1.5000 mark we forecasted a long time ago may come about over the next few months.

Where we are currently in the market for this pair, it looks like we may see a potential retracement up from the downward movement so be aware of that. If we do see an upward retracement, look for a potential retracement price of 1.6050 but not much higher.

If you’re in a long term trade, be sure to lock in profits but account for potential upward retracements.

USD/JPY

W1 – 81.50
M1 – 84.00
Q1 – 87.00

It looks like the USD/JPY is still making its move to climb upwards and has just crossed a major trend line. Look for a potential price target of 86.00 in the longer term, however, watch the currency pair around the 84.00 mark. That looks to be a potential resistance area so we may see some consolidation around that area.

USD/CHF

W1 – .9550
M1 – .9800
Q1 – .9600

It looks like the USD/CHF may be starting to lose strength to the upside. Look for the pair to potentially continue climbing to the .9600 – .9800 area and then potentially reverse to head back downwards. However, in the shorter term (meaning the next couple of days), it looks like the pair is still maintaining its upwards stength so if you’re in a buy trade, be sure to lock in profit and move your stops as you get further into profit.

Don’t forget that although we’re known for our relationship with a forex trade signals service, we do have many upcoming changes to our website. We talked a while back about expanding some of the focus of Pro Pipper Trading beyond Forex to include internet marketing. How are these two intertwined? We absolutely love doing both. When not trading, we’re putting our time and efforts into internet marketing and search engine optimization. Things are going well and we’ll highlight all of our services on our home page in the next couple of weeks.

Some traders were getting confused about the longevity of our forecasts. Our forecasts before we always said was “longer term.” To avoid future confusion, we’re going to bring down our analysis time frame so we can give shorter term forecasts for those traders who are looking for more current, shorter term analysis. Thanks to the traders who brought this to our attention. You’ll now notice we’re showing hourly charts rather than daily charts.

EUR/USD

W1 – 1.2800
M1 – 1.2500
Q1 – 1.2300

The EUR/USD looks like it’s potentially headed for more selling action. Look for an initial target price of 1.2800. From there, watch our trend lines over multiple time frames. Right now, the currency pair is still staying under several trend lines. If this continues, keep looking for the potential sell trade and always be sure to move your stops to keep locking in profit.

GBP/USD

W1 – 1.6000
M1 – 1.5700
Q1 – 1.5900

From the beginning of the 2012, we’ve seen a nice upward movement in the GBP/USD chart and it looks like we’re going to start seeing some shorter term retracement moves down.

Look for a potential continuation of the recent downward movement to test the 1.6000 area level.

You can also run some Fibonacci analysis on the longer term upward movement to get some potential retracement levels. Also, you can see just by looking at the hourly chart a bunc of sideway smovement in between the 1.5700 to 1.6000 area. If we get to that level, be sure to watch for sideways movement like that. That kind of movement in a channel can be very difficult to trade and make a profit from.

USD/JPY

W1 – 79.00
M1 – 81.00
Q1 – 85.00

The USD/JPY has recently seen a downward movement and it looks like we’ll potentially continue to see this movement continue downward, however, it may be looking for a level to head back up to the upside. Look for a potential change to the upside between 76.00 – 79.00.

Is the upward retracement over? It’s still a little too early to tell but it does seem like the low from November 2011 may hold and we’ll see more of a corrective movement upward. Obviously, if we get down to the 75.50 level and below, then we’ll need to re-evaluate.

If you zoom out to a daily chart, then apply some Fibonacci analysis on the larger term movement. Once percentage we’d watch, other than the 50% and 61.8% Fibonacci levels would be the 80% Fibonacci level. If we see it go past 80%, then we’ll need to re-analyze and potentially look at the low from November 2011 not being able to hold up and once we past that point, then we would look for a sell trade.

USD/CHF

W1 – .9400
M1 – .9600
Q1 – .9800

Although you can’t really see it from our screen capture, the latest upward movement did break one of the long-lasting trend lines, which may indicate a continuation of the movement up. If we’re going to continue to see this movement upwards, it still may be a little too early to tell. It does look like the longer term direction is up. If you look at an hourly chart over an extended period of time, it looks like we may be forming a potential head and shoulders type movement, something which may also indicate another upward movement.

Look for a test of the .9400 area and above. Apply some Fibonaccis and look into the longer term to get a view of the “bigger picture.

One thing we did want to touch on before we get to our Forex analysis is avoiding trader burnout. Trading is a lot of stress and you need to relieve and release that stress every chance you get. Traders should never trade year round. Now that summertime is coming up, plan a trip with your family or schedule some time off. A good week to take off from trading is July 4 – Indpendence Day for the United States. All the top traders are off that week as well so use that to your advantage and take some needed time off. Taking that time off will refresh you and keep you focussed. Believe it or not, top traders and top trading firms will have their traders take several weeks off at a time. I know traders who take a month off at a time so they can recouperate and stay focussed.

Good luck with trading this week with NFP. Watch your trades, especially if you have automated stops in place.

We’re also working on several articles we’ll start posting here in a couple of weeks – everything from Forex trading to internet marketing and fun stuff. If you’d like to cover some questions or write an article about something you want more information on, please contact us.

EUR/USD

W1 – 1.3200
M1 – 1.3500
Q1 – 1.3000

As you can see, we have many trend lines drawn in and we actually left a bunch of them out. This currency pair is definitely one you may want to simply skip trading for a while until we start to see more of a trend. If you’re scalping or trading channels, just be careful and be sure to put a stop price on.

We may see a short rebound back to the upside in the next few weeks to test the upper trend lines, however, once that’s complete, then look for a movement back down to test the 1.3000 area.

Again, trading is about putting the odds in your favor and the way the EUR/USD is unfolding, it’s probably better you leave this one alone. Never force a trade or think you can make the market do what you want to do. That mentality is a quick way to draining your account and adding undue stress in your life. The trade should come to you – you should never chase the trade. If you are trading this, be sure to watch your trades closely and use your stops.

GBP/USD

W1 – 1.6300
M1 – 1.5900
Q1 – 1.5500

We see this currency pair broke one of the trend lines to form a new trend line which actually falls (and forms) a new trend line using the absolute highs (spikes) from May 2011 and August 2011. This new high may temporarily hold and we did see a sharp bounce, or downward movement, off this trend line. We may see another attempt to test these two trend lines in the upcoming weeks, however, once those upwards attempts have fizzled out, then look for a move to the downside to potentially test the 1.5900 and 1.5500 area in the longer term.

AS with the EUR/USD, use caution when trading this currency pair and never force a trade. If the trade doesn’t come to you, then there is no trading. Don’t chase trades or make them up in your mind just because you want to be in the market.

USD/JPY

W1 – 79.00
M1 – 81.00
Q1 – 86.00

We drew in a Fibonacci retracement covering the extreme low to extreme high. Most times when we apply Fibonacci, we measure from the bodies of the candle rather than the spikes. Each trader applies their analysis in their own way so be sure to apply the Fibonacci tool like you’re used to.

We see there was a small breach of the 50% retracement level – so what does this mean?

This is where you need to break down into smaller time frames and apply intraday analysis. Traders may take the breach around the 50% as the full retracement and we will see a move back up from here. The good thing is, you know what price level the 61.8% Fibonacci level is at so you can use that as a potential stop price or guide.

For our analysis, we may see some slight downward movement but from here, it looks like we may see a nice upward movement after any shorter term downward movements.

Some advanced traders will get into a long position now with only a small percentage of their trade (lot) size. What does this do? If the currency pair goes against them and retracts to the 61.8% level and according to their indifidual analysis they think the downward retracement will complete near the 61.8% level, they may add more lots to the buy trade.

But by doing that, doesn’t that mean we’re adding to a losing trade – which is something we should never do? Yes, however, according to your analysis, you calculated the pair may retrace down to the 61.8% level and opened your original trade with a smaller lot size. Therefore, when you add to the trade, it still falls within your money management guidelines of 3-5% of your account. If you enter a small buy trade now and the pair moves in your favor, then you will add some money to your account – not as much as if you entered with your entire lot size, however, you were being conservative and following your money management rules in case the trade went against you.

USD/CHF

W1 – .9000
M1 – .9300
Q1 – .9700

The USD/CHF is still deciding if it wants to short-term downward retrace further or start the movement back up.

We may see another small push to the downside in the upcoming weeks, however, when it start forming a sideways channel like this, it may be a signal that the downside pressure is fizzling out. However, when we apply Fibonacci analysis, the retracement isn’t that steep yet. Break this latest movement down in smaller time frames and apply your analysis.

Remember, the longer we stay in a tight sideways channel, we’ll usually see a bigger break out whenever the currency pair decides to make its move.

Keep in mind that this breakout should not be interpreted by one single news event, such as NFP coming up this week.

We had some time off last week and we spent a couple days at Disneyland. We’ll post something about our trip in a future post. It was a lot of fun and the crowds were pretty low so we got to do a lot of things.

Also, we’ve been getting requests for more articles about Forex trading signals and other forex related content so we’re working on that and will be posting to our site soon. Until then, here is our forex technical analysis for next week.

EUR/USD

W1 – 1.3300
M1 – 1.3500
Q1 – 1.3300

As you can see from our chart, we’re right on a very long term trend line.

Watch the currency pair to see if it can break above and break away from the trend line. Watch for fasle breakouts. Although we’re coming up to a strong trendline, it does appear the currency pair may have enough to push through to the upside. However, keep applying internal analysis to watch for a completion of the upward movement.

Proceed with caution with this pair as you can see from our projections. We don’t see this pair coming out of the rut and channel anytime soon. Unless you’re an experienced channel trader, you may want to look to trade some other pairs.

GBP/USD

W1 – 1.6300
M1 – 1.6600
Q1 – 1.7000

The GBP/USD is somewhat similar to the EUR/USD, however, the key difference is it has broken above and away from the trend line. We may see the currency pair come down to test this trend line so be cautious of that.

Our technical analysis, however, does potentially put this pair into an upward movement. Look for continued upward movement. If we could break some tough price points, then we can look for the pair to potentially move up to test the upper trend line, however, that may not be for a while.

If you’re in a buy trade, you’re not in the clear yet. Keep moving up your stops to protect your profit. You can always reenter the trade if it takes you out and your analysis at the time is still pointing up. Don’t let this positive trade turn negative, protect your profits.

USD/JPY

W1 – 82.00
M1 – 85.00
Q1 – 88.00

It looks like the USD/JPY is starting to play out for a potentially nice corrective movement up against the longer term down trend. It still may be a little too early to act on this, but it looks like we’re getting ready to potentially start the upward movement back up again, however, we’ll have to wait and see if the low from April 16 will hold up. We’re currently starting to approach that low level again so we’ll need to see if it holds up.

If it does hold up, then look for another nice movement upward. If we break the low, that means the retracement has not completed and reapply your Fibonacci analysis and move it down to the next levels.

For aggressive traders who have applied their own analysis and made up the decision to enter a trade for themselves, they may place a buy trade and put the stop right below the low from April 16. That way, they can get in at a good price and then have a safety net to take them out of a trade if the trade goes against them. Again, you must do your own analysis and make your own decision.

We follow the mantra – let the trade come to you. We like to take high probability trades and this does not qualify as one of them due to we don’t have enought signs that the downward retracement has completed.

USD/CHF

W1 – .8850
M1 – .8600
Q1 – .8300

The USD/CHF is also starting to form and give us potential clues as to its future movement.

Looking at a daily chart and just by eye balling the last few months of movement, we can see what appears to be a Contracting Triangle (CT). In the overall count, this may or may not be, or have the ability to be, a Contracting Triangle, however, we can see a contracting formation starting to form. We also see that it is a downward moving in nature.

So, look for a potential movement down once it breaks through the trend lines.

Another factor which helps consider this a potential downward movement is the trend line. Watch for a break above and break away from the trend line to consider changing to the buy side. Keep in mind, we may see a spike above the trend line, you need to wait for the breaking away from the trend line for confirmation.

Good luck with trading.

Also, we have a lot of articles planned to come up in the upcoming weeks so be sure to keep an eye out for those.

Good luck with trading and be sure to use your stops and apply your money management.

EUR/USD

W1 – 1.3300
M1 – 1.3800
Q1 – 1.4200

The EUR/USD is still channeling and you may just want to keep this currency pair on cruise control like we have for several months now. Our analysis shows there may be more room for a potential movement up – you can see we’re right in the middle of 2 trend lines.

If you are trading this pair or are a channel trader, be sure to keep your stops tight and protect your profits because of the sideways and up and down movements.

GBP/USD

W1 – 1.6100
M1 – 1.6500
Q1 – 1.6800

It looks like the GBP/USD may be following the same sentiment as the EUR/USD and may be heading for a potential shorter term movement upward.

Look for a potential target price area of 1.6100 and then to the 1.6500 (M1) and 1.6800 (Q1).

For those trading the EUR/USD and GBP/USD, be sure to exercise caution and protect your profits. Know when to cut your losses short and let your profits run – however, that is a little more difficult in the current market condition for these 2 currency pairs. Don’t trade just to trade. Let the trade come to you and if there’s nothing there, then look at other currency pairs to potentially trade.

USD/JPY

W1 – 78.00
M1 – 82.00
Q1 – 87.00

The next two currency pairs (USD/JPY & USD/CHF) we’ve been talking about and watching for a while now. We suspected that when the downward movement had completed, we’d see a nice retracement back up and both pairs are showing this.

The USD/JPY is a little further along than the USD/CHF and we’re at a point where we need to apply our Fibonacci analysis over different time frames to help determine a potential end to this short term retracement down. A good point to watch is the high from the very left end of our chart screen capture. Whether this is a Wave 2 or Wave 4, this current retracement will most likely not go below that previous high. If it does, then we’ll need to reevaluate and look at the scenario that the longer term downward trend will continue again.

If this does turn out to be a 4th wave correction, then we’ll trade Wave 5 up. Keep in mind that Wave 5 are unpredictable and it may not always go above the high from Wave 3 – ie. it may be a truncated 5th wave. Therefore, use comfortable trailing stops and protect some profits. A lot of traders will protect profits on the majority of their trade and let a couple lots run with a trailing stop when they’re in that much profit. That will keep a small portion of your trade in the trade if it keeps moving in the direction you’re trading in.

USD/CHF

W1 – .9000
M1 – .8700
Q1 – .9000

We’re looking at somewhat of a similar situation for the USD/CHF as we are in the USD/JPY. We’re looking to see when this downward retracement will potentially end and continue the movement up again.

The difference between the two currency pairs is the USD/CHF is potentially still in the 2nd wave. So, whether this upward movement is a Impulse (IM) or Zig Zag (ZZ), we will potentially see a nice 3rd wave movement up. Apply your own analysis and use Fibonacci levels to look for potential turning points.

Also, keep in mind W1 projections are a little tough because of Non-Farm Payrolls coming up. The news will push the majors in the direction of traders’ interpretation of the news and may not conform to our technical outlook.

Not getting the results from you forex signal service you were looking for? Check out the C2FX forex trade sheet and we’re planning on adding some fun content soon on Pro Pipper Trading.

EUR/USD

W1 – 1.2850
M1 – 1.2500
Q1 – 1.3500

As you can see from our chart, it looks like we’re currently in a downward trend. Even if the Non-Farm Payrolls tomorrow in the United States pushes the pair back up, it will not be enough to break above the upper trend line. Look for a shorter term downward trend.

Depending on how you look at it and the way this currency pair will unravel, we may be looking at a potential Ending Diagonal (ED) formation. If this turns out to be an ED, then we’ll see more sharp movement downward and then once it completes, we’ll see the dramatic movement back up.

For now, use your Fibonacci and apply trend lines in shorter time frames to get potential projection prices. Look for a potential short term retracement to the 1.2500 level.

Don’t forget that we’re still looking for a big push up once we can break out of this sideways channel. We’re not one to play fundamentals, but this prolonged sideways action may be attributed to the current fundamentals going on around the world. Once we see some stabilization, then look for the strong, sweeping movements.

GBP/USD

W1 – 1.6000
M1 – 1.6300
Q1 – 1.5600

Just like the EUR/USD, the GBP/USD looks like it may be in a retracement move against the longer term trend. Look for more short term movement to the upside. Just be cautious to watch the long term resistance levels and keep in mind we may easily see a break of these levels. However, just because we see a break of these levels, it does not mean we’re making a break to the upside. Our analysis shows we may potentially see a break of the highs from April 2011.

Once the upward movement completes, then look for a potential movement back down to continue the longer term trend.

USD/JPY

W1 – 84.00
M1 – 87.00
Q1 – 90.00

It looks like we may potentially have a bottom and completion of the retracement down. If that’s the case, then look for a strong movement back up to ptentially test the 88.00 level and higher. Again, keep in mind NFP may draw this currency pair back down.

If you’re trading this currency pair long, look for a potential stop loss right below the low from early April. In case the retracement is not over yet, we’ll be able to re-enter the trade at a better price.

USD/CHF

W1 – .8900
M1 – .9000
Q1 – .9600

Traders may look at the above numbers and get a little confused as to why the W1 and M1 projections are so close. That’s because  we’re looking for a move down and then will come back up by the time 1 month has gone by.

In the overall scheme of things, we’re looking for a movement down, and once that movement down completes, then look for the pair to move back up as a continuation of the strong upward movement we saw in August 2011.

Keep in mind, playing the guessing game of where to enter long, be sure to use your stops and if you get taken out, then look to re-enter at a better price.

Good luck with NFP and be sure to protect your profits and physically check on your trades. Just because you have a stop in place, sometimes the movements may bypass your stop price and then you’re  trade is in deep trouble.

If you’re looking for a forex signal provider, see why the C2FX trade sheet beats random signals.

EUR/USD

W1 – 1.3450
M1 – 1.3800
Q1 – 1.3000

It looks like the EUR/USD may have formed a potential short term low in January 2012 and we’re now seeing a 3 wave movement back up. It appears we’re potentially in the 3rd wave of the movement so look for movement up to the 1.3450 next week and 1.3800 over the longer term. The longer term looks like it wants to head back up after we’ve seen this downward contracting triangle. However, we’re seeing lower highs and lower lows so it may be tough to crack this train of thought.

You can see we’re in between 2 major trend lines so look for it to test the upper trend line and we’ll need to continue to monitor its progress.

GBP/USD

W1 – 1.6100
M1 – 1.5700
Q1 – 1.4800

The overall trend of the GBP/USD seems to be down but it looks like we may be forming a very loose and non-conforming upward triangle formation – which in some cases turns out to be one of our favorite formations to trade – the Ending Diagonal (ED). Ending Diagonals are good because once they terminate, they will usually go in the opposite direction very hard and fast. The trick with Ending Diagonals is determining the point they will terminate.

However, in this case, it is still too loose of a formation to even consider this an Ending Diagonal but we are seeing some sideways movement. Look for the pair to continue sideways but still continue with the downward trend in the longer term. This upcoming week, we may see some spikes upward but unless they have some solid foundation to them, are potentially just false breakout movements.

USD/JPY

W1 – 81.50
M1 – 84.00
Q1 – 89.00

We saw some retracement this past week against the sharp movement up we saw from the beginning of the year so this may be the start of the 2nd wave retracement. If you look at the USD/CHF, you can see that currency pair looks similar to this movement except it is a little further along in the process. It appears the USD/CHF is potentially coming to the end of the 2nd retracement wave whereas the USD/JPY is just starting it.

So, run your Fibonacci numbers and look for the normal retracement levels. If you’re in a sell trade, be sure to lock in your profits as we see further movement down. Many traders may be tempted to put their stop right above the high from March 15 (84.16) but we may see a spike just above that, especially with NFP coming up next week, to take out all the stops right above the high. Lock in profit as you go and you can always re-enter again.

Keep in mind, just because we drew in some potential wave movements, this is not our official wave count. We may still be in the 1 wave of a 5 wave retracement. However, either way you slice the wave count, it still appears like we’re in a downward retracement.

USD/CHF

W1 – .8900
M1 – .8600
Q1 – .9300

Not much has changed for the USD/CHF. The longer we watch this pair unfold, the more likely we can see a corrective movement downward. Run your Fibonacci analysis but look for a potential test around the .8400 area. Once we see the downward retracement (or 2nd wave) complete, then look for the strong movement back up.

EUR/USD

W1 – 1.3050
M1 – 1.2800
Q1 – 1.3500

It looks like we may see more downward movement as we travel into the contracting trend lines you see on our chart. Once the pair is done with its downward retracement, look for the pair to move back up to test the 1.3500 area. This is one example where we’re seeing a down countertrend movement but as we draw closer to the point where our trend lines start closing in, we may see a potential termination of the counter trend and start heading back up.

GBP/USD

W1 – 1.5950
M1 – 1.5700
Q1 – 1.5200

The GBP/USD is also looking to start or complete a counter trend movement upward. As you can see, it has broken above our trend line and is now starting to test the new support line. Although it has spiked below the trend line, don’t let that convince you we’re started to head down. It still closed above the trend line so we’ll need to wait and see what happens in the next couple of trading sessions before we can make a conclusion about that.

Regardless, it appears to have a potential draw to move upward. Once the upward movement is complete, then look for the pair to continue in the longer term downward trend.

USD/JPY

W1 – 81.75
M1 – 83.00
Q1 – 88.00

The USD/JPY looks like it is also in a shorter term countertrend down. We saw a steep movement up and it appears we may be starting the retracement down from that large upward movement. This is where Fibonacci numbers come into play. Look at Fibonacci levels and then analyze different time frames – that will help you to determine a potential turning point.

Once the downward retracement is complete, then look for the continuation of the upward movement to potentially test the 88.00 area and above. However, keep in mind the retracement may take some time to unfold and play it itself out so don’t be in a rush to enter long just yet.

USD/CHF

W1 – .9050
M1 – .9300
Q1 – .9900

It appears we may be in the last leg of the retracement down on the USD/CHF. You can see the arrows on our chart screen capture for more information.

Look for a potential continuation down to complete the 3 wave retracement. Once that completes, then look for a potential turn back to the upside. We know we discuss Fibonacci levels to look for potential turning points, but what about projecting a level of how far the next upward movement will go? Read below the chart and we’ll discuss that.

Many traders ask us how we come up with some of our projections. In the case of the USD/CHF daily chart, we saw a nice movement up – followed by what is unfolding as a 3 wave retracement. We use Fibonacci to help determine potential reversal areas for counter trend movements. But, after the downward retracement completes and we see a clear movement back to the upside, how can we project a target area of how far it will go?

One method we use is to look and analyze the first wave. Take the number of pips of the first wave – in this case, 2,527 pips (low of .7067 and high of .9594). Keep in mind, prices may vary by broker, but we get the general idea of the amount of pips the movement was. A good way is to use common percentages for 3rd wave movements and traders will have different percentages, but we usually start with 80%. So, 80% of 2.527 is 2,021 pips. This means that once we can determine the end of the retracement down and the start of the movement up (ie. the turning point), we can add 2,021 pips from that price and come up with a precise target price. Whether this method applies to this market or not, this is one method you can use to potentially find a 3rd wave target price. Again, methodology, including prices, percentages and analysis of this market, may differ so use your own analysis.

This is one method and keep in mind, this method may not even apply to this current market so be sure to utilize your own analysis and make your own conclusions from your analysis tells you about the current market

Are you trading with Forex trading signal? Signals are hard to follow because they are randomly sent out and you may, or may not, have the time and connectivity to jump into the trade. Our C2FX Forex trade sheet features a scheduled release and 3 trading styles. Contact me with any questions about this service.

As usual, here is our Forex analysis for next week. Good luck with trading.

EUR/USD

W1 – 1.2900
M1 – 1.3300
Q1 – 1.4000

The EUR/USD is still lingering within the triangle lines but it looks like we may see some potential movement to the upside. We’re rigth on a couple of strong trend lines so if we can remain above it, then look for another push up to potentially test the 1.3500 area and above.

GBP/USD

W1 – 1.5900
M1 – 1.6200
Q1 – 1.5700

We’re still flirting with the major trendline and we’re actually still below it. However, look for a potential push to the upside. If we do see a break above and break away from the trend line, look for the pair to potentially test teh 1.5900 area and above. Look for it to test the upper trend line drawn in the chart below.

Once the upward movement completes, then look for a dramatic movement back down. Use Fibonacci and intraday anlaysis to help determine potential turning points. Remember to always use your stops and don’t keep adding on to a losing position. That is a very quick way to depleting your account.

USD/JPY

W1 – 85.00
M1 – 88.00
Q1 – 93.00

For a while we were in a long sideways channel but we saw a dramatic breakout to the upside and haven’t looked back. Look for more potential upward movement in the longer term. However, in the shorter term, we may see some downward movement as a retracement to the large, steep upward movement. This looks to be a motive wave so apply your Fibonacci levels and use your Wave 4 projections. Remember, if we are in Wave 4 then the movement up in Wave 5 can be a truncated 5th so be sure to use trailing stops and protect your profit.

USD/CHF

W1 – .9100
M1 – .9300
Q1 – .9900

The USD/CHF is unfolding very nicely and it looks like we may be in the early stages of a Wave 5 of a motive movement. What does that mean? Look for a continuation of the movement up to potentially test the .9500 area and above. It looks like it may be strong enough to bring it back to parity levels.

In an article we wrote for Forex Journal, we commented on the potential dangers of Wave 5 trading. For a long time, traders used to love trading Wave 5 of motive waves because they can see the other 4 waves before it unfolding so they had a pretty clear grasp of the wave count. The problem with Wave 5s is that they can be truncated – meaning, they do not go above the high of Wave 3. This means that you’re looking for “x” amount of pips because you know many pips were in Wave 1 and Wave 3. If you are trading this, keep that in mind and be sure to lock in profits.

Here is our forex technical analysis for next week’s outlook. We’re also happy to mention we, along with other Forex experts contributing to FX Street, were chosen as the Best Technical Analysis. We’ll have more about that in a future post.

EUR/USD

W1 -1.3000
M1 – 1.3500
Q1 – 1.3800

Looking at the daily chart going years back, it still appears we’re in a Contracting Triangle (CT) and we’re looking for a continuation of the upward movement. The shorter term analysis is now starting to swing that way as well, however, with NFP coming up this Friday, this could throw a loop hole into the technical side of the EUR/USD.

We did forecast the EUR/USD being bearish for NFP to potentially test the 1.3000 level by end of next week. However, even if the NFP brings the pair down, we’ll just need to let the dust settle a bit and then we should see a potential continuation of the movement upwards.

Look for an initial price target of 1.3500 and then the 1.3800 level.

Again, let’s not go fishing for a trade. Let the trade come to you and if it’s not there, don’t trade it.

GBP/USD

W1 – 1.5600
M1 – 1.5200
Q1 – 1.4800

It seems the GBP/USD may be losing steam to the upside and may start a bearish trend shortly. If the high from April 2011 can hold up, look for another potential test downward to the 1.5000 price area. There are strong trendlines both above and below our current market price and we may see a movement up to test the upper trend line during NFP. However, unless we see a strong break and breaking away of the upward movement, watch for the pair to lose steam and then start to move down to potentially test the lower trend line, giving us further indication of the longer term downward trend.

USD/JPY

W1 – 82.50
M1 – 85.00
Q1 – 92.00

It looks like the low from last year is holding on and we’re starting to get more and more confirmation as time goes on we’re looking at the start of an upward trend. Whether it’s a motive or retracement movement, we can look at the USD/CHF for a similar type movement.

In the shorter term, we may see some downward movement so be cautious of that, however, after NFP and everything settling back into place next week, we may see a start of the potential upward movment. Look for potential price targets of 85.00 and then 92.00.

USD/CHF

W1 – .9000
M1 – .9500
Q1 – .9900

Depending on how you look at it, we initially thought the USD/CHF was looking to head back down. However, after further analysis over different time frames, it looks like we may see one more move to the upside – almost testing the parity mark. Our analysis is showing a Q1 price of .9900.

Again, with NFP coming up next week, be sure to trade with caution. As stated, we’re actually showing a movement down in the shorter term after NFP.

Good luck with trading and with NFP coming up this Friday, be sure to protect your profits and watch your entries and fills during the announcement.