EUR-USD is showing distinctive downward bias. First targets for Sellers are clustered at 1.5225 and 1.5045, which are Fibonacci 50% and 61.8% retracements levels. Recent re-test of the support level at 1.5040-1.5060 area has brought currency slightly up also encouraged by 38.2% Fibonacci retracement.

Stochastic remains in oversold area but is obviously having troubles rising higher while MACD has crosses zero point confirming downtrend direction.

Also if to zoom out to weekly charts, we have some signals forming that tell us a downtrend is most likely on its way. ADX 10 lines are about to cross, Stochastic is sloping down and MACD lines are crossing down.

GBP-USD pair is currently playing consolidation, where we wait for a break outside the triangle. Till that time use only strategies that work in consolidating markets or refrain from trading.

Happy Forex profits!

This entry was posted on Monday, May 5th, 2008 at 6:09 am and is filed under Daily market comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.