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GBP/USD – Chart Observations

May 26, 2013 in Chart Alert


GBP/USD has been in a very volatile sideways mode since October 2010. The pair had broken below this range during the later half of February 2013 i.e after close to 2 years and 4 months. That certainly brought the bearish sentiments in the picture.

GBP/USD weekly chart since October 2011:

GBP/USD weekly chart - break of the range


The recent upward gains can also be considered just as consolidation as the resistance came EXACTLY at 50% retracement of the downward move during December 30, 2012 to March 10, 2013.

GBP/USD and 50% retracement

GBP/USD weekly chart - 50 percent retracement

The recent fall also tried to break the previous strong resistance which also favors the bearish sentiments.

GBP/USD’s break of previous support

GBP/USD daily chart - break of previous support zone

What do we expect?

1) Initially Some sideways moves over 1.5000 with strong resistance in the range of 1.5281/1.5295.

2) Even a break of the above resistance takes place a fall would be expected from 1.5420/5423 i.e. 38% retracement of the move deom 1.6381 to 1.4831.

3) A break below 1.5000 may target a retest of 1.4831 first and possibly bring deeper moves.

Please also check the weekly outlook of GBP/USD.

EUR/USD Stuck Between Psychological 1.3000 And Trend Line Support

May 26, 2013 in Chart Alert

EUR/USD had failed at 1.3042 and the fall from there broke the psychological support of 1.3000 again and the pair went as low as 1.2796. The support came at the emerging mid term support trend line. The price action is also bringing in a head and shoulder chart pattern and a break below 1.2745 will complete that pattern. If such a move takes place then deeper declines towards the psychological ranges of strong 1.2500 support ranges may be seen.

EUR/USD weekly chart

EUR/USD weekly chart - trend line and head and shoulder pattern


What does the daily chart say?

The daily chart is showing that the resistance is coming just below 55-day EMA but on the other hand the approximate double-top pattern formation may already be over. This may keep the pair in a sideways mode for some time.

EUR/USD Daily chart

EUR/USD daily chart

Please also check the weekly outlook of EUR/USD.

Daily Technical Strategist: AUDUSD

May 24, 2013 in Forex Analysis

AUDUSD: Bearish, Weakens.

AUDUSD: With AUDUSD seen reversing its recovery attempts on Thursday, there is risk of further downside. Support comes in at the 0.9592 level where a break will target the 0.9500 level. Other supports are located at the 0.9450 level and the 0.9400 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, immediate resistance resides at the 0.9700 level followed by the 0.9800 level and then the 0.9851 level. Further out, resistance resides at the 0.9900. All in all, the pair remains biased to the downside medium term.

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by leojosh

New to Investing: Guidelines for Success

May 20, 2013 in Investing

Even if you have a good job and earn a lot of money, you need to invest to grow your money. In addition to having peace of mind, you will be able to secure your future if you invest wisely. If you are new to investing, there are a number of things you can do to guarantee your success.

For starters, you should start investing when you are still young. You will have more money to enjoy when you are older if you start investing when young. Moreover, if you invest when young, you will not have to invest a lot to enjoy the same yield. Say you want to retire at the age of 65 and you have a retirement goal of 500 000 pounds. Take the average rate of return to be 6%. If you start investing at 35 years of age, you will only be required to give 498 pounds each month for a period of 30 years to reach your goal.

On the hand, if you wait until you are older and start investing, say at the age of 55, you will have to contribute 3 051 pounds every month to reach your goal of 500 000 pounds. Clearly, you will contribute less if you invest when young plus the returns will be higher.

Another tip to succeed as a new investor is to educate yourself. Just because you want your money to grow does not mean you should invest blindly. Research and find out about different investment options and their rates of return. This will help you make an informed decision. There is a ton of information on investing on the Internet. You should also read financial magazines and watch financial programs on television for tips on how to invest. There are investments groups on the Internet that you can join to learn more about buying assets. Do not be afraid to talk to your co-workers and friends as they can give advice on how to invest especially if they are investors.

With so many investments options out there, you may not know which ones to invest in. For this reason, you should consult a financial adviser. He/she can give information on the different available investment opportunities. After assessing your needs, he/she will help you decide whether to invest in stocks, unit trusts or real estate. Make sure that you choose a financial adviser who is licensed and certified. Carry out a background check to ascertain that he does not have a tarnished reputation.

Though you want your money to grow, it is wise that you do not start at the deep end. Unless you want to lose all your money, start with simple investments so that you can learn how they work. As your portfolio grows so will your confidence. Consequently, you will be able to handle challenging investments.

To succeed as a new investor, you must not wait until you are too old to start investing. Learn everything you can about investing, consult a financial adviser and start with simple investment opportunities.

Not Every Trade Makes Money

May 9, 2013 in Forex Strategies

How true it is, not every trade does make money.  Traders, after analysis of various inputs, reach a conclusion, and enter the trade.  The analysis can include a myriad of inputs.  Initially, most traders tend to rely on technical analysis, probably because it is easier to get a rudimentary grasp on the markets behavior.  Since price action, as portrayed in a charts, is the summation of many different inputs, this is a logical starting point.

Sometimes we look at a chart, and envision a formation, and conclude the price will go to a certain objective.  Accordingly, a position is taken, and the result is profitable; this leads to confidence and interpretation of other formations.  And, yes, we all know how this ends.  Making money on our first few trades can be costly.  We think we are a trading natural and then losses occur in both our money and our confidence.  It is time to go back to the analysis room.

Then it gets confusing.  There are so many inputs from so many different sources.  Markets can be driven by fundamental economic events, news releases, various central bank policies, and most of all fear and greed.

That’s why resources like and are so important (and free): there’s a world of a difference between gambling and risk-managing your ‘wager’. If you are going to survive as a trader you must learn, as they say in the song “when to hold them and when to fold them.”  Further, you must examine what caused you to initiate the trade and then learn from your losing trades.

Will GBP/JPY Target 152.10?

May 8, 2013 in Chart Alert

155.00 psychological level kept it’s resistance on GBP/JPY. The recent support trend has been near 22-day EMA level. Let’s see if that pattern holds.

GBP/JPY daily chart

GBP/JPY daily chart