EUR/USD

W1 – 1.3250
M1 – 1.3500
Q1 – 1.4000

The currency pair is potentially set for some type of bullish action in the longer term. If we see a cotinuation of the movement up, look for a test of the 1.4000 all the way up to 1.4500.

Strong trend lines may act as resistance so be sure to watch for those on the daily and intraday charts.

GBP/USD

W1 – 1.5500
M1 – 1.6000
Q1 – 1.5500

The longer the GBP/USD channels and moves, the more data we can use to process its potential movement. Looking at it, it looks like the big break will potentially be to the downside. If we do see a break and break away, it could be a very steep movement, similar to what we saw in late 2008 and early 2009.

Map out your support levels and watch for breaks of those. Be cautious in long term trading because the shorter term trend appears to e bullish and we’re currently sitting at a pretty strong resistance level of 1.5850.

USD/JPY

W1 – 80.00
M1 – 83.00
Q1 – 87.00

We’re now starting to hit the very top of the sideways channel on the longer term chart. Normally, we look for a break and break away of a major resistance level, however, be cautious before entering into a buy trade on this pair. Even though our analysis is showing a potential good movement to the upside, we’ve seen some failed attempts for breaks to the upside. If you do get in a buy trade, protect your profits.

In the shorter term, look for a move to the upside to test the waters. Look for resistance around the 79.55 level.

USD/CHF

W1 – .9000
M1 – .9500
Q1 – .8900

We’re still in the lull of the USD/CHF, however, we know to look for a potential retracement to the downside in the shorter term. We may see a test of the .9000 level and below. We’ll need to watch this movement to see where we are in the wave count. Normally, we don’t worry about where we are in the count as we focus on high probability trading, however, it does seem like we will see another push up.

If you’re in a long trade, then look to protect profits and be generous. We may see a retracement to the downside – don’t let it eat away your profits. You can always re-enter at a better price down the road.

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

Be Sociable, Share!

• 

This entry was posted on February 18, 2012 at 1:14 am. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Posted in Analysis Forex by ross No Comments Yet