Forex Blog

EUR/USD trend: hold.
GBP/USD trend: sell.
USD/JPY trend: hold.
EUR/JPY trend: hold.

EUR/USD trend: sell.
GBP/USD trend: hold.
USD/JPY trend: buy.
EUR/JPY trend: buy.

EUR/USD trend: sell.
GBP/USD trend: hold.
USD/JPY trend: buy.
EUR/JPY trend: sell.

EUR/USD trend: buy.
GBP/USD trend: sell.
USD/JPY trend: buy.
EUR/JPY trend: buy.

The current situation on the EUR/USD daily chart seems like a good preparation for the long position. If you look at the picture below you’ll see three highs almost at the same level — 1.5902 on March 17, 1.5896 on March 31 and 1.5913 on April 10. The corresponding lows of these highs conclude an uptrend. Altogether they form an ascending triangle, which is the known continuation pattern:

Somewhere next week I expect the upper horizontal line to be broken and EUR/USD will be ready to head for the new absolute maximum near 1.6300-1.6500. I will probably set up a stop buy order at 1.5914 with a stop-loss near 1.5700 and target at 1.6350 to check this idea. But it will probably take a week or two to break the support level.

EUR/USD trend: buy.
GBP/USD trend: sell.
USD/JPY trend: sell.
EUR/JPY trend: hold.

Are your technical skills good enough to earn by themselves? Can you trade without any fundamental information? Is technical analysis can be considered a self-sufficient tool at all? You can try to find the answers to these questions using an interesting financial training tool from Inspectd.com. It shows you only a bare six months chart of an unknown stock with only one moving average as an indicator. You have to decide whether to buy, sell, or skip this stock, the period of holding if you open a position and a percentage of funds to use. Then the stock and is further chart is revealed and you get your profit or loss. A very simple concept but it’s very addictive and very interesting in terms of the minimalistic technical analysis.

Why write about stock market thingie here? Because wouldn’t be very different if the same was implemented for the Forex trading. In fact, before you know the name of the stock it can be completely anything. There are only two factors that make it more useful to stocks traders rather than Forex ones. First, stock’s price range — it can be seen before you decide on the trade and knowing that it’s some penny stock or some heavy-weight stock might help sometimes. Second, the market volume is shown — there is no real market volume indicator in Forex. Nevertheless the number of price changes in a period is often used in place of the market volume in Forex trading. So, it’s not that big difference.

Anyway, I’ve found Inspectd.com to be both interesting as a trading emulator and as a technical analysis trainer. If you like any of these, you’ll like Inspect.com too. It’s a very new site (launched less than a month ago), but it’s already quite popular and a lot of new features can be expected soon.

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: hold.
EUR/JPY trend: hold.

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: hold.
EUR/JPY trend: sell.

EUR/USD trend: sell.
GBP/USD trend: sell.
USD/JPY trend: hold.
EUR/JPY trend: sell.