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GBP/JPY And 22-Week EMA – Will The Pattern Hold – Forex Chart Alert

June 30, 2013 in Chart Alert

GBP/JPY had once again maintained the pattern of finding support near 22-week EMA. In fact we had predicted as support at 147.11 long before the support was found exactly at that level and the pair jumped from 147.11. Please check the last chart in this old chart alert to check on this.

Let’s also check the following weekly chart of the currency pair.

GBP/JPY and 22-week EMA

GBPJPY and 22 week EMA support

What is stopping the pair now?

GBPJPY and resistance levels

The above daily chart shows the struggle against the 55-day EMA which is the red line. Not only that but there is an emerging short-term resistance trend line. Overall a break above both of these will be the first indication for any gains but overall the break above 151.93 is required as a confirmation.

Update on July 14th, 2013:

With reference to the above, the current chart is as follows and the price action is still above 22-day EMA support:

GBP/JPY still over 22 day EMA

What if the support pattern breaks?

Any decisive break should take GBPJPY down towards 38.2% retracement of the upward gains from 118.79 to 156.77. This level is at 142.26.

GBP/JPY and retracement levels on weekly chart

GBPJPY and retracement levels


Please leave your suggestions/comments in the comment box below.

You may also like to check the weekly GBP/JPY forecast and daily GBP/JPY analysis.

AUD/USD And Psychological 0.9000

June 30, 2013 in Chart Alert

AUD/USD has been falling without any stops since the interest rate decision came. We had covered this in this chart alert of the currency pair.

The pair is approaching 0.9000 and a strong psychological support would be expected in those ranges. But what if that support also fails?

The chart below indicates various retracement levels and we would expect that AUDUSD may target 0.8767 to 0.8790 range in case the support over 0.9000 does not hold.

Please note that in the following chart we have considered the low as 0.8067 while in the previous chart alert we had considered the low as 0.8082. The pair had been in a volatile sideways mode during those 3 weeks. The low of that range was 0.8067 and the low of the last week of that range was 0.8082. The retracements levels are indicative and there is no exact science behind those and hence this difference.

AUD/USD and retracements

AUDUSD retracement levels

Please leave your suggestions/comments in the comment box below.

You may also like to check the weekly AUD/USD forecast and daily AUD/USD analysis.

Forex Trading Using Margins

June 29, 2013 in Forex Strategies

Margins offer forex traders a huge benefit – it gives them the opportunity to trade in large volumes but using just a small amount of money. When a trader uses a margin account he is basically borrowing funds to use in his trading so that he can gain a higher return on his investment (the money he enters the trade with). A forex trader uses the margin account with the leverage that is acquired using the borrowed funds. This allows for the initiation of larger trading positions using just a small capital. For example, a trader, using funds as little as 50 to 100 dollars, can enter into trades that amount to 10,000 to 100,000 dollars. This is one of the more unique qualities of forex trading.

Using a Margin Account

A trader who wants to use a margin account must first sign up with a broker, an online forex discount broker or applied with the chosen forex platform. After sign up, this is when the account is set up.

Before any trade using the margin account commences, money needs to be deposited first into the margin account. The amount of money deposited will be dependent on the percentage that the broker and the investor agrees on. Usually though, the percentage be within 1 to 2 percent if the currency units are 100,000 or more. What this means is that if the investor/forex trader deposits 1 percent that will be used for trading, the margin account will provide 99 percent of the funds.

The trader’s margin account will not be imposed with any interest but if is not able to close the position he’s in before the specified delivery date then the amount is going to be rolled over. This is the time when interest will be imposed, which also depends on the position.

The Margin Calls

What are margin calls? Let’s use an example to better illustrate what it is. A broker uses a $1,500 security on his margin account. If the trader who has an agreement with the broker begins to lose and the loss may reach the security of $1,500, the broker can start a margin call. When this happens, the broker may choose to ask the trader to place more money into his margin account or he can choose to close the losing position in order to limit any further loss. Many brokers will opt for the latter and just close positions once a margin call has been reached.

Margin Accounts and Forex Risks

While being able to trade with larger amounts despite a small capital is the biggest benefit of using a margin account it is still not without risks.

You need to be very vigilant when trading with margins – be fully aware of all the conditions that come with using a margin account and ask advice from more experienced traders about the benefits and pitfalls of margin trading. Only when you’re fully aware of all that you need to know about margin accounts should you consider opening a margin account.

About The Author

Famous forex professional Mario Singh owns, a site dedicated to forex news and forex strategies.

USD/JPY And The Fear Of 100

June 29, 2013 in Chart Alert

USD/JPY had found strong support over 200 day moving average and also over the 38.2% retracement of  the move from 77.13 to 103.73. The upward gains were finding resistance near the 55-day EMA. All these facts were mentioned in this chart alert for USD/JPY.

Last week the pair finally broke over the 55-day EMA resistance. Apart from the above chart alert, please also check the following chart which indicates the recent history of the price action versus the 200-day moving average and 55-day EMA since Octover 2012. The red line is the 55-day EMA line and blue one is 200-day SMA line.

USD/JPY with 55-day EMA and 200-day SMA support

USDJPY with 200 day SMA and 55 day EMA

USDJPY and other resistances

USD/JPY and resistances

The biggest resistance is of course 100.00 but before that the recent break of 99.28 is indicating that bullish sentiments remain intact. After breaking over 99.28 the pair touched the exact 99.45 which had worked as a resistance earlier also. Overall a break over 99.47 should take the pair to retest 100.00 and above.

Please leave your suggestions/comments in the comment box below.

You may also like to check the weekly USD/JPY forecast and daily USD/JPY analysis.


EURUSD Keeps The Bearish Outlook Intact

June 29, 2013 in Chart Alert

EUR/USD had fallen below 200-day moving average and then 55-day EMA during last to last week. Last week’s price action made those breaks as decisive to strengthen the bearish outlook.

EUR/USD’s price action below 200-day SMA and 55-day EMA

EURUSD below 200 day moving average and also 55 day EMA

Lets’s also check the longer term view of the price action against the 200-day SMA and 55-day EMA in the following chart. The red line is the 55-day EMA line and blue one is 200-day SMA line.

longer term view of EURUSD against 200 day SMA and 55 day EMA

Were the earlier gains mere consolidation?

EURUSD - failure below 61.8 retracement

The important point why this fall made the bearish outlook stronger is that the downward move started much before the pair could complete the 61.8% retracement of the fall from 1.4940 to 1.2042. Not only that but the price has broken below the 38.2% retracement of this move once again.

Considering all the above points if there is a decisive break below 1.3000 by some extended price action below this level then a move towards 1.2890 can be expected. Any break below 1.2880 would have deeper implications.

Please leave your suggestions/comments in the comment box below.

You may also like to check the weekly EUR/USD forecast and daily EUR/USD analysis.

How Far The GBP Will Fall Against The USD?

June 28, 2013 in Chart Alert

GBP/USD continued it’s fall for the second week in a row after failing at 1.5751. We can’t say that the currency pair stands right now at 1.5233 because GBPUSD is failing to stand at all. How far it may fall? Well, can I answer it? No. Can we answer it? Again “No”. So let us see some of the charts and what those charts say.

Please also check other recent alerts for GBP/USD.

GBPUSD Weekly chart and the trend line support

GBP/USD- The next target

If we wee the short-term support trend line which has been emerging, the support is where the psychological push of 1.5000 levels comes in i.e. in the range of 1.5080 to 1.5120. A support would be expected in that range if the pair does not find any minor support before that. But then considering this strong fall we will not ignore the possibilities that this support fails. In case this fails then a retest of 1.5008 to 1.5014 can not be ignored.

If 1.5000 psychological support fails

GBPUSD longer term

Well, if 1.5000 psychological support fails then our focus will turn towards 1.4770 to 1.4790 support.

Recent resistance levels

current resistance level for GBP/USD

As clear from the above 4-hourly chart, the resistance during the whole of last week has been mainly coming near 5-period EMA on the 4-hour chart. During the beginning of the last week a break over that had brought resistance below 55-period EMA. In case this resistance fails then we would expect a resistance near 22-period EMA which is close to 1.5298 now.

You may also like to check the weekly GBP/USD predictions.

EUR/JPY Gives Mixed signals

June 23, 2013 in Chart Alert

EUR/JPY had found support exactly at 124.95 where a strong support came on April 15th. Finding support exactly at that level and not a pip here or there was an indication that the fall was over but on the other hand the strong resistance below 130.00 and also below the short-term resistance trend lines is casting doubts about the same.

EUR/JPY chart observations

EUR/JPY support at the exact previous support level

Observations on 4-hourly chart

EUR/JPY expected support

A double top chart pattern is forming with a neckline at 128.21 and this can be considered as a possible immediate support. A break below that may find a support near 127.06. And decisive break below that will turn the focus back towards downside.

Please check all the EUR/JPY chart alerts and also chart alerts for other currency pairs also.

Please check the EUR/JPY’s weekly predictions and also EUR/JPY technical analysis which is updated daily.

Please write your comments/suggestions in the comments box below.

USDCHF And The Resistances Ahead

June 23, 2013 in Chart Alert

USD/CHF had broken below some important supports as we had mentioned in this previous chart alert. The recent jump from 0.9130 was strong but we need keep an eye on the possible resistances ahead.

USD/CHF and moving averages.

USD/CHF testing 200day moving average

The current price action is struggling against the 200-day moving average. The current 200-day moving average is 0.9343. Even if a decisive break over this takes place then the 55-day EMA resistance is just over it. The current 55-day EMA is at 0.9407. Another point to be noted is that the previous strong resistance of 0.9418 would also come into picture here.

USD/CHF and retracement levels

USD/CHF retracements

Interestingly the resistance of the 38.2% retracement of the fall from 0.9790 to 0.9130 also falls in this range. The above chart indicates the struggle below the 38.2% retracement level which is at 0.9382 i.e. almost at the middle of the 200-day moving average and 55-day EMA resistances.

Please check all the USD/CHF chart alerts here and also chart alerts for other currency pairs also.

Please check the USD/CHF’s weekly predictions and also USD/CHF technical analysis which is updated daily.

Please write your comments/suggestions in the comments box below.

GBPUSD Followup 2- Forex Chart Alert

June 23, 2013 in Chart Alert

GBP/USD had found support near 55-day EMA but fell again before testing 200-day SMA. Please check the previous GBP/USD alert here. The recent fall tried to break below the mentioned support but the price action closed for the week at the 55-day EMA.

GBP/USD with 200 day moving average and 55-day EMA

GBP/USD - failure ahead of 200-day moving average

GBP/USD and 61.8% retracement

GBP/USD and retracement levels

The above chart shows the support near 50% retracement level. If this support does not hold then a move towards 61.8% retracement can be expected. The 38.2% retracement level should now act as resistance.

Please check all the GBP/USD chart alerts here and also chart alerts for other currency pairs also.

Please check the GBP/USD’s weekly predictions and also GBP/USD technical analysis which is updated daily.

Please write your comments/suggestions in the comments box below.

USD/JPY Testing 55-Day EMA Resistance

June 23, 2013 in Chart Alert

We had mentioned that USD/JPY is near a very strong support zone of 93.46 to 93.56. 93.46 was 200-day moving average support and 93.56 was the 38.2% retracement for the move from 77.13 to 103.73. Our suggestion was for a cautious approach for any short-selling position. This was indicated in this previous chart alert for USD/JPY. The support came slightly above the indicated range and at 93.79.

USD/JPY recent support

USD/JPY completing retracement

The pair missed completing the 38.2% retracement just by 23 pips and jumped up. On one hand the strong jump suggests that the downward correction might have been completed but we will still be cautious for any long orders as the current price action is testing the 55-day EMA resistance. In fact even a break over this may again have challenges below 99.28.

USD/JPY and possible resistances

USD/JPY daily chart with 200 day SAM and 55 day EMA

Possible support level for USD/JPY

An indicated in the above daily chart, in case of another fall, we expect strong support near 95.80. Any break below that may bring further consolidations.

Please check all the USD/JPY chart alerts here and also chart alerts for other currency pairs also.

Please check the USD/JPY’s weekly predictions and also USD/JPY technical analysis which is updated daily.

Please write your comments/suggestions in the comments box below.

EUR/USD Testing the 200-Day Moving Average Support Again

June 23, 2013 in Chart Alert

EUR/USD’s failure ahead of February 20th’s 1.3434 is casting bearish shadows for the pair yet again. Though we will be discussing about this in the weekend outlook for the currency pair but let’s see some of the observations of the charts.

Double bottom pattern

EUR/USD double bottom - weekly chart

The above weekly chart shows the double top pattern on the weekly chart. The strong fall may be indicating that the pattern may already be completed and further declines may be seen.

200-day moving average and 55-day EMA supports

EUR/USD daily chart with 200 day SAM and 55 day EMA

The pair has broken both 200-day moving average and 55-day EMA supports but as both these are in the very early stage, we would like to say that EURUSD is still testing these supports. A decisive break and some extended price action below these levels will indicated further decline.

Short-term support trend line

EUR/USD and the short term trend line

The short-term trend line indicates a support in the range of 1.2925 to 1.2960

The longer-term support trend line

EUR/USD and the longer term trend line

The above weekly chart indicates a longer term support trend line which we had also discussed in this older chart alert of EUR/USD. This indicated support around 100 pips below the short-term trend line support i.e. near 1.2840/1.2860.

Please check all the EUR/USD chart alerts here and also chart alerts for other currency pairs also.

Please check the EUR/USD’s weekly predictions and also EUR/USD technical analysis which is updated daily.

Please write your comments/suggestions in the comments box below.

Daily currency review (21 June 2013)

June 21, 2013 in Forex Analysis

The US dollar continued to appreciate for a third day against all of its major pairs, after Fed’s Ben Bernanke said that the US central bank may reduce the amount of the stimulus programme before the end of the year.

The EUR/USD fell sharply after Bernanke’s comments on Wednesday, dropping from 1.3409 to its weekly low from yesterday at 1.3173. This morning the pair is trading a bit higher, hovering around the 1.322 level. The greenback’s rise was further supported by better-than-expected results on US Existing Home Sales and surprisingly positive data Philadelphia Fed Manufacturing Survey, both published yesterday.

The dollar advanced against the Japanese yen as well, jumping from 94.88 on Wednesday to 97.85 at the time of writing.


More noticeable declines were registered in the commodity currencies and emerging markets in general. The expected risk aversion directed serious financial flows to the Swiss franc and the currency advanced against the greenback. The British pound’s performance against the dollar also ‘’suffered’’ from Bernanke’s comments, and the GBP/USD declined from 1.5661 on Wednesday to 1.5477 at the time of writing.

The Australian dollar is also depreciating against the greenback since Wednesday, falling from 0.9559 to 0.9226 at the time of writing.

Analysts commented that from now on, the macroeconomic indicators of the US economy will be more closely monitored by market participants in attempts to look for confirmation of the Fed’s optimistic forecasts. This will trigger additional dynamics in dollar crosses and increase the volatility on the Forex markets.


The focus will also remain on decisions of the other leading central banks. The yen may fall soon under new pressure, on expectations that the Bank of Japan is preparing for new measures aimed at stimulating the country’s economy.


Today is shaping as quite a trading day, with the main highlight beingCanada’s Consumer Price Index.




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