Thoughts About Forex Market

    Hello, in Lithuania we have short work week, so my review  will be short. So previous bullish week for EurJpy and EurUsd proved bullish harami candlestick pattern in EurJpy and piercing pattern in EurUsd. In a month or two I expect EurJpy to retrace to a price level 120.00 and EurUsd to a 1.34 level.

    Next week for both currencies can be a little retrace and sideways play, or maybe a bullish trend.

     Hello. Previous week euro stopped falling against two other majors and showed some strenght. In weekly EurUsd chart we see, that the pair found its support at 1.1876.  I think, this support is strong, because it is related with a forming "big flag" patterns lower support line (I mentioned it on my previous week report). Beside this, piercing pattern has formed. So if the next week will end with white candle, it may be a clue of returning bull market.

     As EurUsd, EurJpy pair also stopped falling. Price touched precisely a 108.06 level, range between cup support line and profit target is equal to a 2/3 of a cup deepness as theory states. So it may be no room for eurjpy to move south. Formed bullish harami pattern tells that euro strengthen against yen and bullish next week can be a sign, that euro will strengthen more.

     In daily EurUsd chart we see a wedge pattern formed and a double bottom pattern formed. Both bottoms diverge with MACD indicator. This says, that bear market maybe over. So for next week I expect EurUsd to reach 1.26. Price can pierce this level and continue towards 1.33. But more likely bulls will stop at 1.26, retrace to  1.215 level and form a reversed Head and Shoulders pattern. This may happen in one - three weeks.

    For EurJpy rules are same as for EurUsd: Price may reach 114.00 level, pierce it and move towards 120.00. Or fail a little bit at 114.00, find its support at 109.00, form reversed Head and Shoulders - bulls return. But failure of all this can cause a bears to continue its travel to south.

    So for next few weeks I expect both pairs to move in range market and maybe form some reversal patterns :).  To more clearly determine market direction I will follow general economical news.

       Hello, I'm back from holiday on FX and ready to face markets with a fresh - mind.
    In these three weeks euro continued to fall against other majors - dollar and yen. In weekly chart we see, that EurUsd had broken its major support at 123.33 and week ended with 1.1965. For now I see two big scenarios: 1. EurUsd stop at level between 1.15 - 1.17 and the bulls return, forming a big flag (green lines). 2. EurUsd breaks through all supports it has and reaches level 1.00 (this may happen if problems of euro-zone countries will deepen).

    Let's take a look at daily chart. EurUsd started falling steeper than earlier (compare yellow channel with green channel). Also we see a formed descending triangle, which support at 1.21 on Friday was  broken. I expect price to retrace to 1.21, to check its new resistance and then continue towards 1.15.

     Like EurUsd, EurJpy also broken its major support at 112.00. So, the next meaningful support can be at level 100.00 and failure of piercing it can fuel a bigger correction. Otherwise euro may fall against yen to a level near 80.00.

      Zooming into daily chart we see that support at 109.00 is holding on. If EurJpy will follow movements of  EurUsd, this level will be not hard to break and the next stop can be 100.00 - 102.00 price levels. But a failure of this can cause a range market, which will move between 109.00 - 114.00.

       For now I don't see any possible reversals for both euro pairs.
     Main news for euro and dollar will be on second half of the week. So I expect at that time market to be more volatile.