Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. This pair had a huge upmove yesterday along with its cousin, GBPUSD. It broke through an important psychological resistance at 1.40 and is now resting at a strong support at around 1.4050. As can be seen from the chart, this pair has been ranging for the past few hours. Whether this ranging is accumulation and hence a breakout to upside or distribution and hence a breakout to the downside, only time will tell.

On the downside, we have support at 1.4050 and then 1.4000. If both these supports are broken, then we have the next support close to 1.3920.

On the upside, there is some strong resistance at 1.41 and then at 1.4160 which is a even bigger resistance.

The trade plan for today would be to wait for break of 1.41 or 1.400 and then take a trade in that direction.

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. Yesterday, was a topsy turvy day with price whipsawing on all the pairs and finally the prices of most pairs ending the day where they had started. Nowadays, that has become very typical of Mondays where the big guys just seem to take all the pairs on a big ride to confuse everyone.

Anyway, we are where we are. Yesterday, we had a nice move down to the strong support at 1.3810. Though the downmove was something that was expected, the size of it surprised me as i was expecting a move only till around 1.39. In any case, we had an upmove after that and this move has shown that there is still lot of strength left in this pair. Now, this pair is trying to clear 1.3930 which had served as a decent support yesterday.

On the downside, we can support at 1.3890 and then a very strong support at 1.3810.

On the upside, there is some decent resistance at 1.3930 and then at 1.40. Today, i would expect the price to move up after a small retrace into the high 1.38s.

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. This pair had a huge fall last week with the USD getting stronger against all major currencies. Now this pair has entered into a region of high traffic. Going back in the charts , we can see that this region is highly congested with a lot of supports and resistances and with a lot of buying and selling going on.

On the downside, we have had a nice bounce on this pair from the support at 1.3916 and this pair has risen quite a bit over the last few hours. We have supports at 1.3960 and then a major support at 1.3916. I would be very suprised if this support is broken today.

On the upside, we have resistance at 1.4038 and then another major resistance at 1.4110.

For today, i would expect some ranging between the support at 1.3916 and 1.4110 and with no major news on any pair today, i do not expect a breakout from these SR regions. So, it would be a good idea to play this range today.

Perfect PA setup

Last week was full of perfect PA setups on almost all pairs that i could lay my eyes on. Here is one on EURAUD. The first pic is the 1H chart for EURAUD. Now watch the price action on the move to resistance at around 1.7765 and then the move down to 1.7456. Do you see anything special ? No?? There is nothing special in it unless seen by trained eyes who can spot beautiful PA setups and money making opportunities.

This pair made through till it faced a strong resistance at around 1.7765 - 1.7822. Newbies would see this beautiful move up and be tempted to go long at the top. But have a look at the 4H chart and it shows lot of congestion in that price range previously. So unless this price range is broken either way, you should stay away from the trade. So, you wait. Waiting is very tedious but good trading is boring. It sure is. Then you see a breakdown thru the congestion region to the downside and you see a move to 1.7578. You are tempted again to go short. Hold on !! 80-90 % of the time, a break through a SR region will be followed by a move back into the SR region atleast one more time. Here the support has been broken but in the 1H chart, see the price move back into the support/resistance region.

Why does this happen ? Once the break in SR happens, the big guys push back the price into the SR region to tempt newbies and the small guys into thinking that there is going to be an upmove (in this case) and tempt them into buying again. So, you wait again. This move back into the SR region may take anywhere between a few mins to a few hours depending on the Tf that you trade. Now the price moves back into the SR region and again there is a fall.

You wait anxiously. The best entry is obtained on the break of the support from which the upmove into the SR region was made. In this case, the upmove back into the SR region started from 1.7595. So, you wait patiently for the break of 1.7595 and at one fine point, the break happens and the price zips through 1.7595. So, where do you enter ? Do you enter at 1.7594 or 1.7593 or 1.7592 or where?

Well, you wait for the support to be broken and price through support. Then, you switch to the lower TF. Watch the 15M chart. Here, you see price break through 1.7595 and move to 1.7555. But as in any other support break you can see price coming back up. You wait for price coming back to 1.7595 and then take a short there. Dont think, dont waver. Just short it. The break of support is confirmed by 2 things : The long bar on the break of support on 1H and the retrace and stalling at the support at 1.7595. If the break had been false, there will be not be any stalling on the retrace back to 1.7595, the price would just zip through 1.7595 and back into the 1.7610 region.

Once you have taken the short on the retrace, just sit tight. Dont waver. Since this has been observed on a 15M chart and this pair is quite volatile, you can be assuredof atleast 50 pips. Just sit tight and enjoy the pips. A perfect PA setup !!

Updates on Signal Service

I had a very nice break from trading yesterday. I was able to catch up with a lot of pending stuff which had been accumulated over the past week. I did not even switch on my system the whole of yesterday.

Anyway, last week was a great one for my signal service. The start on Monday was not good where we lost about 80 pips but we really picked up over the next 4 days and we finished last week with more than 800 pips in the green. On Tuesday, we made about 150 pips and on Wednesday and Thursday, both days put together, we made more than 500 pips. On Friday, again we made about 150 pips.

It was a great week for the signal service and i received feedback from my subscribers and from the guys on trial that this has been the best signal service that they have ever been in !!

Hope to continue the momentum in the coming week as well !!

Daily Outlook for GBPUSD

Attached is the 1H chart for GBPUSD. This pair has been having a huge fall during this week. The week started off fine for this pair but right from Tuesday, this pair has been having a huge fall and there seems to be nothing to stop it. Now, this pair rests at the support at 1.6110. This is a bit of a surprise for me that this support has been holding on for so long as , looking through the charts, there does not seem to be any major highs or lows at this price range.

So the fact that the price has been supported here for so long has been a surprise to me. Today should be very interesting for this pair as, if the pair finishes anywhere below 1.62, then it should form a huge weekly bearish pin bar which should indicate a huge fall in the coming weeks.

On the downside, there is support at 1.6110 and then a break of this could lead to 1.6080 and then a huge support at 1.60.

On the upside, we should see some good resistance at 1.6150 and then at 1.62 and then at 1.6250.

Unlike the Euro, i would not like to take any direction for this pair as Euro looks strong but this pair looks weak. Should be interesting though.

Daily Outlook for EURUSD

Attached is the 1H chart for EURUSD. As can be seen, this pair has been consolidating for many hours now. This shows that it is getting ready for a breakout on either side. This pair is now caught between a decently strong resistance and support and has been unable to break out on either side.

The small traders are too scared to take a guess on either direction and the big guys are accumulating more and more and thats why this consolidation and lack of breakout on either side. This consolidation should continue into the London session as well where we can then hopefully see some kind of a breakout.

On the downside, there is good support at 1.4160 and a break of this could lead to the next strong support at 1.41. This price region has proved to be a very very tough support to break and despite the big fall in various pairs over the last few days, this price region has not been convincingly broken yet.

On the upside, we have resistance at 1.4230 which has proven tough to break. A break of this resistance could lead to price moving to 1.4282 which is again a good resistance. Then there is the very strong resistance around 1.4330 which has not been broken for quite sometime now.

For today, i would expect some more consolidation till the London session and considering the strength so far, i would expect a move to the upside today.