Week Ahead 3Rd August Technical Analysis From Fxmars

August 4, 2014

Posted by fxmars.com

EURUSD:

During the last week the price broke in bullish direction the pink bearish trend line from July 10. This happen after the price created a bottom at 1.33634. At the same time, the stochastic oscillator broke its green descending triangle in bullish direction, which got the indicator out of the oversold area. It also confirmed a double bottom formation (blue) with breaking its neck line (red) in bullish direction. As you see, these are four bullish signals that speak of an eventual increase of the price. For this reason, we expect the price to increase at least to the resistance at 1.35104. We could also follow the Fibonacci retracement, because the whole bullish movement might appear to be a retracement rather than a change in the trend.

USDJPY:

After the rapid increase of the price during the last trading week, the price reached the purple resistance around 103.000 and then it bounced in bearish direction. At the same time, the stochastic oscillator got out of the area of the overbought market, which supports the eventual bearish decrease. Furthermore, there is a bearish divergence (blue) between the last two tops of the price and the stochastic oscillator, which signalizes of the eventual drop too. For this reason, we expect a decrease of the price, which could even reach the many times tested support at 101.228.

GBPUSD:

After moving in the purple bearish corridor from July 14, the price increased its intensity and did a bearish break through the lower level of the corridor. This speaks of an eventual decrease of the price at least to the level 1.67337. At the same time, the stochastic oscillator has entered in the area of the oversold market and it is about to get out of it in bullish direction. For this reason, we admit that the price could do an eventual bullish correction, which could test the already broken lower level of the purple corridor as a resistance.

USDCHF:

Again, the Swissy demonstrates the same mirror image behavior to the EUR/USD currency pair. The price got our of its rising wedge formation in bearish direction, which speaks of an eventual decrease. The stochastic oscillator got in the area of the overbought market and broke its ascending triangle in bearish direction, which supports the eventual bearish activity. At the same time, we see the blue double top formation on the stochastic oscillator, which is already confirmed, again, as a confirmation of the bearish potential. For this reason, we believe that the price would eventually decrease to the blue bullish trend line from May 8.

AUDUSD:

The last decrease of the price of the Aussie reached the already broken green bearish trend line from April 10 as a resistance. As you see, after meeting with this level, the price demonstrated a decrease in its bearish intensity. at the same time, the stochastic oscillator attempts an out of the area of the oversold market, which speaks that the already broken green bearish trend line might appear to be a strong support. For this reason, we could expect the price to do a bullish increase through the 0.93304 resistance, but after all we should not forget that on D1 there is a confirmed head and shoulders formation (blue), where the broken neck line is the 0.93304 level. For this reason, we believe that the overall potential of the price is basically bearish.

XAUUSD:

The falling wedge formation from June 25 (purple) brought the price to test the 1279.72 support, which speaks of an eventual bullish break through the falling wedge formation. Such scenario would satisfy the potential of the falling wedge formation. At the same time, the stochastic oscillator is about to interact with the are of the oversold market, which would support the eventual bullish scenario. Having in mind that the price has already bounced from the 1279.72 support, this looks like a pretty possible alternative for the gold.

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