Text Forex

11/02/2014

Technical analysis for Tuesday 11/2/2014 using our three featured markets with the daily candle charts

The FTSE rose during the session on Monday, testing the top of the shooting star from the Friday session. Because of this, we think that the market still has a lot of fight left in it, and as a result we do believe that it will eventually go higher. We have no interest in selling, and we think that the market will eventually trying to break out and above the 6700 level. Pullbacks at this point time should offer nice buying opportunities as we have seen so much strength from the lows recently.

The GBP/USD pair went back and forth on Monday, hovering around the 1.64 level. The fact that we have not pulled back after forming such a positive candle on Friday does suggest that perhaps there is still some bullish pressure underneath this market, and we most certainly know that it’s there at the 1.63 handle based upon the triple hammers that we saw last week. With that, we are buying pullbacks as they occur, especially once they form a supportive daily candle. We still think this market goes to the 1.65 handle, and then ultimately the 1.67 level.

The EUR/USD pair rose during the session albeit slightly on Monday. We think this market continues to go higher but should have quite a bit of resistance just above. With that, we don’t feel that it’s prudent to risk our trading capital in this market, and therefore are sitting on the sidelines. It is not until we get a much clearer signal that we would be willing to trade this market, but we do recognize the fact that a pullback here with supportive candles could possibly present a short-term buying opportunity, but we see no ability to sell.

30/01/2014

Technical analysis for Thursday 30/1/2014 using the daily candle charts.

The FTSE went back and forth during the session on Wednesday, clearing out stops in both directions. That being the case, it appears that the market ended up the day relatively unchanged, losing just 0.43%, but with that we believe that the market more than likely will find support just below. Longer-term, there is a trend line that held up during the session, and as a result we have to believe that it is still in effect. We are looking for supportive candles in order to start buying again, which should send the market higher.

The GBP/USD pair went back and forth during the session on Wednesday, essentially printing a neutral candle. This is the second day in a row we have seen as, but it does suggest that the 1.65 level is going to offer significant support. If that’s the case, we are more than willing to buy a supportive candle somewhere in this general vicinity, as we believe the buyers will step into the market and push the price higher over the longer term. We also believe that the market will eventually hit the 1.70 level, but it will be a grind higher.

The EUR/USD pair fell during the session on Wednesday in preparation for the FMOC release. However, later on in the day we did in fact bounce enough to form a hammer, which of course is a significant buy signal. On top of that though, we have a couple of shooting star so this market does look like it’s going to grind sideways at best. With that, we think that it will continue to be very volatile and a difficult market to trade. Going forward, we think that we need some type of clear signal that we have at the moment in order to place any real money at risk.

29/01/2014

Technical analysis for Wednesday 29/1/2014 using the daily candle charts

The FTSE rose during the session on Tuesday, showing support at the 6550 level. The market looks as if it’s trying to find some type of bounce from this area, but until we get it we are on the sidelines. The market will more than likely find resistance of the 6680 level, but with that we feel that this market will continue to go higher based upon the longer-term slightly positive channel that we have been trading in. The noise below should offer plenty of support, so as a result we are not willing to sell at these low levels.

The GBP/USD pair went back and forth during the session on Tuesday, essentially settling nothing. This candle is very neutral, and we believe that the area below offers enough support that we really can break down significantly, but the area above is a bit too rich for the market right now. With the FMOC meeting coming out later today, we suspect that waiting for the daily close and loving the market show what it plans on doing next is probably the smart move. A close below the 1.65 level signifies that the market might be ready this are breaking down, while a move above the 1.6650 level could be a sign that the buyers have taken control again.

The EUR/USD pair fell during the session on Tuesday, but as you can see bounced enough to close above the 1.3650 level. With this hammer, it appears that the market is going to simply grind sideways in the meantime, and with the FMOC meeting coming out later today, it’s very likely that the market is waiting until that announcement. All in all, we do believe that the market is going to more than likely fall, but only back within the consolidation range down to the 1.35 level honestly, the best route for trading this pair right now might be to simply wait until the daily close today.

28/01/2014

Technical analysis for Tuesday 28/1/2014 using the daily candle charts

The FTSE fell hard during the session on Monday, losing 1.7% by the time the market close. This market has sold off rather drastically, but we are starting to enter an area that had a lot of noise in it last month, and because of that we feel that this market will more than likely find some type of support down here, but we certainly don’t have the setup at the moment to think about buying. With that, the market is one that we avoid, simply because any selling ideas now certainly are way too late as this move has been so brutal.

The GBP/USD pair rose during the session on Monday, using the 1.65 level as support. This area was previously significant resistance, so the fact that it offered support really wasn’t that big of a surprise. On top of that, the candle is closing at the very highs of the session, so it does look like continuation would more than likely be the case. As you can see, this market has been grinding higher over the longer term, but it has been a relatively bumpy market overall. With that, we do like buying this market, but do understand that patients will be required in order to profit from it.

Short-term charts could probably be used for entries, as they may offer more value as far as that’s concerned. The 1.65 level, and the area immediately below it, should offer enough support to keep the market somewhat afloat. With that, a pullback and a short-term supportive candle would be enough to get us to start going long again.

The 1.6650 level is resistance, so breaking out above there would in fact be a strong sign, and we believe that would be the signal that the markets ready to go towards the 1.70 handle, which is ultimately our target before it’s all said and done. With that, we are bullish, but do recognize that taking this trade in small pieces might be the way to go as committing too much leverage to one position might be absolutely disastrous for the smaller trader.

Even if we did break down below the 1.65 handle, we do not believe in selling this market until we get below the 1.63 handle, as there is so much noise between the two levels. On a close below the 1.63 handle, we believe at that point time the market would head towards the 1.60 handle, although we believe that’s a relatively low probability move. With that, we are more than willing to buy on dips and continue to be bullish of the British pound as it has been so strong against most other currencies.

The EUR/USD pair went back and forth on Monday, printing a neutral but slightly negative candle. The fact that this was printed right after a shooting star on Friday suggests that perhaps the market is ready to fall a bit, and perhaps make a move back down towards the 1.35 level. On the other hand, if we managed to break the top of the candle on Friday, there’s no real reason why we can hit the 1.38 handle. Above there, things get a bit difficult as it is significant resistance, just as below the 1.35 level is relatively significant support.

24/01/2014

Technical analysis for Friday 24/1/2014 from the team at www.textforex.co.ok using the daily candle charts

The FTSE broke down during the session on Thursday, which of course was in a major surprise considering we had just seen two shooting stars printed in a row. However, the 6760 level was where we thought the support would start again, and that is where the market stopped. That being the case, we need to see some type of supportive candle in this general vicinity in order to start buying. This is what we think will happen eventually, and we do think that the market continues to be positive. With that, we are only buying, and not selling.

The GBP/USD pair rose during the session on Thursday, breaking above the 1.66 handle finally. Because of this, we feel that the British pound will continue to go higher, something that we have been calling for recently. This market certainly looks like it wants to continue going up to the 1.70 level, which we see as the next major resistance area. With this, looking for pullbacks will more than likely be the best way to go forward, as the market is just a bit overextended at the moment. Regardless, the British pound has certainly been one of the better performing currencies out there, and as a result we certainly have an interest in going long.

Although the US dollar itself has done reasonably well lately, it appears that the greenback is starting to give back some of it strength, and with a currency like the British pound which has done at least well, if not quite strong against the Dollar, this should only accelerate the move higher. After all, while the other currencies around the world were struggling against the US dollar, it was the British pound that was the anomaly, moving slightly higher or at least holding its own during that time.

The 1.66 level should be somewhat supportive if we pullback, but we definitely believe that the 1.65 level will be. With that, we are looking for supportive candles on the four hour charts or higher time frames than that, as it gives us an idea of the order flow that seems to be seen in this area. The longer this move takes though, the more organic it will feel, simply as it is a continuation of buying pressure over and over. The British pound continues to strengthen overall, and with the US dollar losing a little bit of its luster, this market really only has one way to go for any real length of time. With that, we are buying over and over, hopefully building a reasonably decent sized position between here and the 1.70 level, where we would expect quite a bit of selling pressure to enter the market

The EUR/USD pair shot straight up during the session on Thursday, using the 1.3550 level as a springboard. We had suggested that breaking the top of the shooting star from the Wednesday session could send this market higher, but probably finding the 1.37 area as resistive. However, we were quite surprised to find the area hit the very next day. With that, we think that this market will more than likely continue to go higher, probably looking for the 1.38 level. A pullback at this point time will more than likely be supported by people wanting to enter the fray as this market suddenly looks very bullish.

23/01/2014

Technical analysis for Thursday 23/1/2014 from the team at www.textforex.co.uk using the Daily Candlestick charts

The FTSE tried to rally during the session on Wednesday, but for the second day in a row found enough sellers above to force the market back down and form a shooting star. This is a rather negative sign, but we see the market is being sold supportive and positive that we are not willing to sell even this most negative trade signal. Instead, we believe that buying a supportive candle below will be the way to go going forward. We fully expect the market to be heavily supported near the 6760 level, so anywhere between here and there on signs of support, we are buyers. Alternately, if we managed to break above both shooting stars, that would be an extraordinarily bullish sign.

The GBP/USD pair shot through the 1.65 handle during the session on Wednesday, breaking above the first area that we had mentioned needed to be cleared for the buyers to take over again. On top of that, we came very close to breaking above the 1.66 handle, so it appears that the market is ready to break out. With that, if you are a bit more adventurous, you could be buying here, otherwise waiting above the 1.66 on a daily close would be the way to go. Pullbacks to show signs of support are buying opportunities now, and there is no way to sell the British

The EUR/USD pair tried to rally during the session on Wednesday, but found far too much resistance in order to continue and keep the gains. The shape of the shooting star of course suggests that more selling could come, but we need to break down below the 1.35 level in order to be comfortable selling. Until then, we are willing to sell, but if we managed to break above the top of the shooting star, we would see this market go to the 1.37 level. Nonetheless, we expect choppy conditions going forward.

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07/01/2014

Technical Analysis for Tuesday 7/1/2014 from the team at www.texteforex.co.uk using the hourly candle charts

The FTSE went back and forth during the session on Monday, ending up unchanged for the day basically. This market continues to consolidate in this area, and therefore we think that waiting until we get a significant break higher, possibly above the 6820 level will be the easiest way to take the long position. Ultimately, we do not sell this market as it has been so parabolic and bullish lately, which of course shows real underlying strength. Any pullback at this point time should represent value, and we would be more than willing to buy candles below that show signs of that support.

The EUR/USD pair had a slightly positive session on Monday, bouncing off of the 1.36 level in a sign of support. If you look back at late November, you can see that there was a cluster back there that does suggest that this support is valid. It’s difficult to imagine this pair moving to drastically before the nonfarm payroll numbers, so bit of a bounce from here would exactly be too far out of the question. Nonetheless, we would not expect this pair to get above the 1.38 level anytime soon, at least not until the nonfarm payroll numbers would suggest US dollar weakness. Until then, expect choppy and sideways action.

The GBP/USD pair fell initially during the session on Monday, but as you can see bounce back above the 1.64 handle by the end of the day. This bullish action of course formed a nice-looking hammer, we now think that this pair is ready to continue going higher, challenging the 1.65 area, and then potentially higher levels than that. Ultimately, we think this market will go to the 1.70 handle based upon British pound strength more than anything else, as the US dollar isn’t exactly a week currency at the moment. With that, we are deftly buyers on a break in the top the hammer as we think that the uptrend continues.

All things being equal, selling is not possible, basically because of the way that the British pound has been acting lately, and the fact that the 1.63 level should continue to be supportive. The shape of the candle of course tells us that there is buying pressure below, thereby making the market very interesting to us.

Quite frankly, the British pound is one of the few currencies out there that we like against the US dollar for the longer-term, as the Pound has been so strong against most currencies around the world. You can also use this currency pair is a bit of a signal for relative strength, as the pair going higher signifies that the British pound should be going much higher against other currencies such as the Swiss franc, Japanese yen, or many of the other commodity-based currencies. After all, if the British pound look strong against the US dollar, is going to look especially strong against the Japanese yen as it is being sold off.

That being the case, this is a pair that you should be watching even if you are trading it. There might be better returns to be had by buying the British pound against other currencies, or we may just find a nice grind higher in this market. It’s a scenario which you can play either way, simply because it comes down to your personal comfort.

03/10/2013

Latest Technical analysis was for Thursday 3/10

11/09/2013

Technical Analysis for Tuesday 11/9/2013

The FTSE broke higher during the session on Tuesday, gaining 0.82% by the time the market close. That being the case, we are now well above the 6575 level, and we think that this market will continue to move towards the top of the recent consolidation area at the 6700 handle. With that being the case, we are buying the FTSE and we believe that the next couple of days should be positive. Any pullback should be met with support, and as a result the markets will be very buy oriented.

The EUR/USD pair fell initially during the session on Tuesday, but as you can see found enough support to bounce and form a hammer for the day. This hammer of course is a very bullish sign, and it does tell us that this market once the keep on going up in value, perhaps to the top of the previous consolidation area which we see as the 1.34 handle.

The market will probably have trouble above that area, at least until the Federal Reserve makes its announcement about quantitative easing and whether or not it wants to taper off of it. That being the case, we feel that this market will be very volatile over the next several sessions. However, we do think that there is an upward bias in general between now and then, so therefore buying the pair is probably the only real trade that you have at the moment.

We think that short-term traders will do well in this market, and that every time the market falls for the short term we could have a buying opportunity. Look to the short term charts, as they will leave the way going forward. On top of all that, the European Union has just exited a recession which of course is a good thing for the currency as well, and it appears that based upon stock markets that the risk appetite is fairly strong out there at the moment.

With positive risk appetite, this pair typically does quite well. Remember, the Euro is essentially the “anti-dollar”, and as a result we feel that this market will more than likely continue to do well because of that if nothing else. On top of that, we feel that the market has made a significant low as the 1.31 handle, and we cannot short this market until we break well below that handle, because it shows so supportive action. The markets will continue to move on headlines obviously, and at this time of the year, there will be a priest liquidity suddenly, which could move the markets drastically in the blink of an eye.

The GBP/USD pair slammed into the 1.5750 level during the session on Tuesday, proving that area to be resistive still. With that being said, we await to see whether or not this market can breakout above the level and a daily close would be needed to start buying. Otherwise, we feel that we will continue to consolidate in this range that has eight top at the aforementioned 1.5750 level, and a bottom at the 1.55 handle. In the meantime, expect choppiness, but that daily close would be enough to get us to start buying as we think that US dollar is in a bit of trouble at the moment.

10/09/2013

Technical Analysis for Tuesday 10/9/2013
The FTSE had a slightly negative session as you can see on Monday, but the 6500 level did in fact offer support, and force this market to make a nice looking hammer. Is because of this hammer that we think that this market will continue to go higher, and a break of the highs would more than likely bring more players into this market to go much higher. We believe that this market is bullish, and as such we are more than willing to start buying on that signal, as we believe the trend should continue soon.
The EUR/USD pair rose during the session on Monday, breaking above the 1.32 handle again. This means that we are reentering the consolidation area that we had spent so much time and, because of that we feel that this market will eventually go to the 1.34 handle. As far as selling is concerned, we are not interested in doing it at the moment, but we would be much more interested in selling closer to the 1.34 handle on a resistive candle. With that being the case, we think that short-term traders should do fairly well going long, but eventually this move will run out of steam.

The GBP/USD pair rose during the session on Monday, but found the 1.5750 level to be far too resistive as one would expect. The resulting candle is pretty positive, but we think that the market is still stuck in this consolidation area that we’ve been in for some time, and because of that we feel that this market is more or less a short-term traders market instead of one that people will be comfortable hanging onto a trade in. However, if we do break above the 1.5750 level, this market should head straight to the 1.60 handle.

30/08/2013

Results for Week Ending 31/8/2013 from our forum at www.textforex.co.uk
TRAILING STOP STRATEGY

Monday No Trades Advised

Tuesday No Trades Advised

Wednesday +40

Thursday +20

Friday +20

Total for the week +80

Total to date +9915

FORUM TRADES

Monday No Trades Advised

Tuesday No Trades Advised

Wednesday -11

Thursday -20

Friday -40

TOTAL for the week -71

TOTAL since April 2009 +32368

Averaging 820 per month

TEXT TRADES

Monday +40

Tuesday Non Advised

Wednesday +140

Thursday Non Advised

Friday Non Advised

possible max profit for the week of +180 points

+27346 to date (137 weeks) AVE 199 pts per week

MORNING CALL

Monday No Trades Advised

Tuesday No Trades Advised

Wednesday +17

Thursday -40

Friday +19

Total for week -4 (grand total 5902)

Total for August -7

23/08/2013

Results for Friday from our forum at www.textforex,co.uk

MORNING CALL

FTSE100 +18

EUR/USD No Trade

GBP/USD No Trade

TRADING FORUM (note profits / loss calculated to with 5 points of entry/exit)

The trades today revolved around the MAIN DAILY pivot as Support or resistance

FTSE100 +60

EUR/USD -20, -20

GBP/USD -20, +14 at close

TRAILING STOP STRATEGY

FTSE100 No Trade

EUR/USD No Trade

GBP/USD No Trade

TEXT TRADES

Non Advised