Categories: Technical Analysis

Looking Forward to buy valleys in EURUSD (extract from Weekly Market Forecast 26th of January 2014)

The EURUSD pair during the last week found support at around the 1.3500 level, and then climbed back above the 1.3700 level. The pair on Friday retraced some of the gains and closed below the 1.3700 level. I think the pair can continue to trade higher in the upcoming week. There is also a bullish convergence noted on the 4 hour chart, as shown below. So, I think we should look to buy valleys in the short term.

The pair might trade higher from the current levels or move lower close to the 1.3640 support region before it continues to move higher again. So, if the pair trades closer to the support levels and the trend line as plotted on the hourly chart shown below and forms a bullish candle pattern, then we will jump into a buy trade. Remember, the pair needs to hold the 1.3620/10 level in order for our bullish bias to be valid.

Initial target should be around the 1.3780 level, and final target could be around the 1.3890 level. Stop should be placed below the trend line and support region as highlighted in the chart above.

Home Trader Club - Learn How Trader Earns! VIP Membership Club for Traders by Vladimir Ribakov

Traders Workshop - For Real Success - You Need To Learn From The Best! Complete Trading School by Vladimir Ribakov

Major events scheduled in the upcoming week
Another eventful week came to an end. Despite there was no major market moving economic event in the US, we noticed some major swings in some of the major pairs. The EURUSD found support at around the 1.3500 and climbed back above the 1.3650 level. The GBPUSD registered a new two year high after the encouraging employment data. The USDJPY dived down towards the key swing level of 102.00, as there was some risk-off theme noted in the market. The upcoming week could be a very interesting one, as we have a lot of fundamentals to be released, including the most important, the Fed interest rate decision and policy statement.

Let us look at all major events lined up in the upcoming week.
Sunday – BOJ Monetary policy meeting minutes.

Monday – German IFO business climate index, the US new home sales data and Australia’s NAB consumer confidence.

Tuesday – UK GDP data, US core durable goods orders and CB consumer confidence.

Wednesday – Fed interest rate decision and RBNZ interest rate decision.

Thursday – Spanish GDP data, German unemployment data, US GDP data and pending home sales figures.

Friday – German retail sales data, Euro zone CPI figures, Canada’s GDP, Chicago PMI and Michigan consumer sentiment.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPUSD, EURGBP, USDJPY, EURJPY, AUDUSD, NZDUSD, EUAUD, GBPAUD, AUDNZD, EURCAD, GBPAD, USDCAD, EURCHF, USDTRY, USDZAR and INDICES.
Get it HERE: Vladimir’s Markets Forecast

Enjoy the weekend friends!

Advertisement

Click To Join Our Community Telegram Group

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.