G7 Forex Report

Daily Forex Technicals | Written by The Traders Club | Apr 01 09 10:26 GMT |

EUR/USD Weekly Trend direction: Bearish Weekly trend reversal level: 1.3740 Key G7 resistance levels: 1.3350, 1.3428, 1.3480 Counter-trend opportunities: Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance levels after an entry signal. Today's trade suggestion: Little change since Monday, and the strategy remains the same: More drama on Friday, as the euro sold off sharply later in the session. This has formed a perfect weekly “tweezers top” and very close to a “dark cloud cover”. Because of this, we have reversed the weekly direction to short, with the reversal level at the top of the tweezers at 1.3740. We now look to sell the euro on rallies, with the strongest resistance at 1.3350 (the 38.2% Fibonacci retracement level and the previous support. There are other lesser resistance levels either side at 1.3380 and 1.3480. Watch and wait for a clear G7 entry signal before selling, with a target of 1.3200 and then the key 1.3000 level. Update: No change. 1.3350 entry level was perfect for 150 pips profit Summary: Sell rallies to the resistance levels above only after a clear G7 entry signal. Target 1.3200 and then 1.3000 EUR/USD Hourly chart: EUR/USD Weekly chart: GBP/USD Weekly Trend direction: Bearish Weekly trend reversal level: 1.4780 Key G7 resistance levels: 1.4360/1.4400, 1.4440, 1.4520 Counter-trend opportunities: Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal. Today's trade suggestion: The pound has actually broken below the weekly reversal level in the past few hours and has turned bearish overnight. We are at the key 1.4200 support (50% of the recent rally) which has provided somewhat of a barrier to the continued down-move so far. There is a counter-trend opportunity here, to buy at or near 1.4200 ONLY AFTER A CONFIRMATION to buy from a G7 signal. Use small positions and buy for a target of 1.4430. Then look to sell the pound either here or at 1.4500 to go with the main bearish trend back down to 1.4200 and then 1.4000. Update: Unchanged. Resistance at 1.4362 triggered a perfect sell entry Summary: Sell rallies to resistance levels after a G7 confirmation. Target 1.4200. GBP/USD Hourly chart: GBP/USD Weekly chart: USD/JPY Weekly Trend direction: Bullish Weekly trend reversal level: 95.40 Key G7 support levels: 97.00, 96.20, 95.50 Counter-trend opportunities: Strategy: Whilst above the weekly trend reversal level, buy dips to support levels after an entry signal Today's trade suggestion: Quite mixed up, but the reality is that we have been trapped in a range between 96.00 and 100.00 (most of the time) for over a month. The last two week's weekly candles have a distinct bullish look to them, with a “spike low” two weeks ago, followed by a sort of “bullish engulfing” candle last week. For this reason, we have decided to go with the long direction, with the weekly reversal level below last week's candle low at 1.9540. Look to buy the dollar on dips, with support at 97.00 (key) and then 96.20 and 95.50 (the weekly trend reversal level) Target for long trades is 99.00 and then 100.00. If and when we do reach 100.00, the resulting breakout higher should be convincing. Update: Unchanged, with the dip to 96.20 providing a perfect bounce back to 98.20 (at time of writing. Next stop 99.00, then 100.00 Summary: Buy dips to supports after a reversal signal. Target 99.00 and then 100.00. USD/JPY Hourly chart: USD/JPY Weekly chart: The Traders Club http://www.thetradersclub.com