Forex Technical Analysis of EURUSD for September 01, 2014

Studying forex technical analysis charts for EURUSD exchange rate, observe that the forex pair continues to show weakness and continuous retreat to lower levels. It is quite clear that the trend is downward.

On monthly chart has been broken downward the EMA (50) while on the weekly chart the price is below the EMA (50) and EMA (200), which have converged and allowed suspicions about upcoming downward cross. On daily chart the price have broken the bottom of a downward Andrews Pitchfork, as the EMA (50) and EMA (200) have already a bearish cross.

The view about forex technical analysis on four hour chart remains negative, also we can draw a Bearish Andrews Pitchfork where will notice the price to move over the median line.

On the hourly chart clearly shown the continuous declining of the price.

The MACD is downwards to all timeframes, indicating a reduced downward momentum only in the hourly chart.

Considering all the details of the graphs of forex technical analysis we can detect all critical levels and trading targets for each timeframe.

 

Daily Chart

The area 1.3200 - 1.3240 is neutral zone.

If the price move upwards and close above the neutral zone will come into force the following trading targets: 1.3300, 1.3350, 1.3400

But as long as the price remains below the neutral zone will apply the downward trading targets: 1.3050, 1.2950, 1.2850

4H Chart

The area 1.3150 - 1.3165 is neutral zone.

If the price move upwards and close above the neutral zone, then the upside trading targets will be: 1.3200, 1.3230, 1.3270,1.3300

If the price keeps moving below the neutral zone, then the downside trading targets will be: 1.3065,1.3030, 1.2980

1H Chart

The area 1.3125 - 1.3135 is neutral zone

If the price move upwards and close above the neutral zone, then the upward trading targets will be: 1.3150, 1.3165, 1.3180

If the price keeps moving below the neutral zone, then the downward trading targets will be: 1.3100, 1.3080, 1.3050

We note the need to use stop loss levels. After all the above informations we can design a forex trading strategy in order to follow, which will have based on forex technical analysis.

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