FOREXYARD: Forex News Blog | |
| Posted: 24 Sep 2010 02:05 AM PDT
Price action combined with a Fibonacci retracement level that coincides with a big round number should serve as traders' target for the GBP/USD. Looking at the weekly chart, traders should notice a few things from the recent price action. The bullish correction from May to August made a 61.8% retracement of the previous bearish trend that begins at the height of the pair in August 2009. The pair failed to breach this level twice and fell back to the 38.2% retracement level at 1.5300. Following the drop to the 38.2% level, the GBP/USD made a bullish engulfing candlestick pattern the previous week and closed just shy of the 50% Fibonacci retracement level. Barring any surprises on Friday, we should get a close above the 50% Fibonacci level at 1.5635. This will allow for a potential price move to the 61.8% Fibonacci level and a target at the height of the May to August move at 1.5600. Many traders are psychologically drawn to big round numbers and therefore will set their sights as well as take profit levels near this area. Support levels can be found in a range near 1.5520 followed by the 38.2% Fibonacci retracement level at 1.5300.
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| Posted: 24 Sep 2010 12:14 AM PDT
Gold prices rose significantly in the last two months and peaked at $1293 an ounce. However, the daily chart is suggesting that the recent up trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on crude oil now, and at a great entry price! • Below is the daily chart for gold by ForexYard. • The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range. • Point 1: There is a "doji" candlestick formed in the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure. • Point 4: Williams Percent Range also supports the downward direction. Gold-Daily Chart |
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