Technical analysis of EUR/USD for January 22, 2014 2014-01-21 1390342314_eurusdh1.png The EUR/USD pair for swing trade on January 22, 2014. The last four strong levels: Swing bearish trade = (Sum of Resistances ) / (Total of Resistances) Swing bearish trade = (1.3471 + 1.3585 + 1.3653 + 1.3767) / 4 Swing bearish trade = 1.3619 The market will indicate a bearish opportunity at the level of 1.3620. Hence, it will very profitable to take profit at the 1.3585 price as the first target and it is going to continue towards the price of 1.3515. Weekly pivot point = 1.3585 The value of 100% Fibonacci retracement is: high = 1.3698 in H1 chart. The best location for placing a stop loss should be placed above 1.3686. It should be noted that: Take profit = 110 pips. Stop loss = 66 pips. Take profit = 5/3 * Stop Loss. Stop loss should never exceed your maximum exposure amounts. Risks to reward ratios are important and should be calculated. Example: A risk reward ratio of 1:1.7 is recommended: Risk: 66 pips must make a profit of 112 pips. 66 pips * 1:1.7 = 45 pips. Technical analysis of GBP/USD for January 22, 2014 2014-01-21 1390343966_gbpusdh4.png 1390344111_gbpusdh1.png Trading recommendations: According to previous events, the price of the GBP/USD pair has still been trapped between 100% of Fibonacci retracement and 61.8% in H1 chart. Long Buying: Buy above 1.6387 with the first target of 1.6466, it might resume to 1.6515. Short Selling: Outlook -1-: Swing trade at 1.6520 in order to sell with a traget of 1.6460. Outlook -2-: Below 1.6455 look for further downside with 1.6412 (in order to test the weekly pivot point) and 1.6383 targets. Intraday technical levels: Date: 22/01/2014 Pair: GBP/USD Projected high: 1.6656 Breakout (buy stop): 1.6601 Strong resistance (sell limit): 1.6571 Current pivot: 1.6442 Strong support (buy limit): 1.6313 Breakout (sell stop): 1.6288 Projected low: 1.6238 Technical analysis of USD/JPY for January 22, 2014 2014-01-21 !UJ22012014.jpg In Asia, Japan will release the Monetary Policy Statement, All Industries Activity m/m, BOJ Press Conference and the US will not release any economic data. So there is a big probability the USD/JPY will move with low volatility during this day. TODAYs TECHNICAL LEVELS: Resistance. 3 : 104.86. Resistance. 2 : 104.66. Resistance. 1 : 104.45. Support. 1 : 104.20. Support. 2 : 104.00. Support. 3 : 103.79. DESCRIPTION: Please, pay attention to the levels of support 3 (103.79) and resistance 3 (104.86). Normally, when a level is touched, USD/JPY will rebound from the previous minimum by 10 to 20 pips, but if the levels are broken through by over 50 pips, then it will be a sign that these currencies have found trends today. Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Posted on: Wed, 22 Jan 2014 10:41:40 +0000
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