G7 Forex Report

Daily Forex Technicals | Written by The Traders Club | Apr 15 09 10:06 GMT |

EUR/USD Weekly Trend direction: Bearish Weekly trend reversal level: 1.3600 Key G7 resistance levels: 1.3450, 1.3600 Counter-trend opportunities: Strategy: Whilst below the weekly trend reversal level, sell rallies to resistance levels after an entry signal. Today's trade suggestion: Sideways in a large range for the past month, there is not a lot to add to last week's commentary. If anything, the Euro looks like it is in a “bullish flag” pattern, with the potential to rally back up to 1.3900 or 1.4200 in the next few weeks. Still, we remain true to the G7 system and look to sell the Euro into rallies to the resistance levels above (1.3450 and 1.3600) and we'll wait for a clear G7 entry signal if/when the price reaches up there. Targets will be 1.3100 initially, and then the ever-present support at 1.3000. Note that the Pound is probably ready for a decent rally, which might drag the euro up with it in the short term. Update: No change to the strategy! Summary: Sell rallies to the resistance levels above only after a clear G7 entry signal. Target 1.3100 and then 1.3000. EUR/USD Hourly chart: EUR/USD Weekly chart: GBP/USD Weekly Trend direction: Bullish Weekly trend reversal level: 1.4580 Key G7 support levels: 1.4770, 1.4580 Counter-trend opportunities: Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal. Today's trade suggestion: The Pound is looking very bullish indeed and may well be the investment of the month, with a target around the 1.6000 level. This view is supported by the G7 system, with the bullish direction being held up as long as we are above the weekly reversal level at 1.4580. We might not get another decent shot at buying dips for some time (you should already be long from last week, or have taken profits) Supports now lie at 1.4770 and the weekly reversal level at 1.4580. If/when we break above the previous rally resistance at 1.4961, we should rapidly advance to 1.5000 and then 1.5300. Update: No changes! Summary: Buy dips to support levels above after a clear G7 entry signal. Target 1.4960, then 1.5000. (then 1.5300!) GBP/USD Hourly chart: GBP/USD Weekly chart: USD/JPY Weekly Trend direction: Wait and see!! Weekly trend reversal level: Key G7 support levels: Counter-trend opportunities: Buy at 98.00 Strategy: Wait and see!!l Today's trade suggestion: The dollar rally vs. the Yen is looking a little tentative, with last week's “doji” candle being either a pause in the rally or a potential medium term top. In any event, the weekly reversal level is just below the current price at 99.30, and we need to hold above there for this rally to take another leg higher, and for our bullish direction to remain intact. Look to buy dips to 99.50/70, with stops below 99.30, for a rally back to the 100.00 barrier and then 103.00. The medium term target remains 105.00, where some consolidation is likely. Update: Weekly reversal level has been breached. Wait and see how the week ends. Try tiny counter-trend longs at 98.00 Summary: Buy dips to 99.50/70 after a reversal signal, stops below 99.30. Target 100.00 and then 103.00 USD/JPY Hourly chart: USD/JPY Weekly chart: The Traders Club http://www.thetradersclub.com