The GBP/USD ended with a Doji yesterday after reaching the strong resistance 1.6180; now an inverse head and shoulder pattern had been formed and its neckline lies around 1.6140. Since 1.6180 overlaps with the upper side of the horizontally moving Bollinger Bands on 17 October 2012; Forex traders should pay attention that whether the currency pair would be able to break out the line 1.6180. Despite that a head and shoulder pattern has been formed and the MACD line is trending downwards below the zero line, traders should still be cautious that whether the pair would retrace back upwards for that the rate of GBP/USD is temporarily moving above the MB of Bollinger Bands on the 4H forex chart and the Doji failed to clearly point out where the market would go next. Resistance today: 1.6130 and 1.6180; support: 1.6100 and 1.6050.
Today, on 2Nov. 2012, Forex traders should fix a watchful eye on how the daily moving average would trend during the day in order to identify whether to go long or short to make profits. Temporarily the daily moving average of EUR/USD is moving between the UP and MB of the Bollinger Bands, making it less possible for long term traders to obtain profit potentials; facing with the sideways trending market, traders had better consider making trading orders in the short term. Now it is extremely possible that the EUR/USD would trend without clear future direction for the Bollinger Bands began to trend horizontally on the 4H forex chart as well. Traders can only find proper time to enter the market in the short term. Support: 1.2920 and 1.2840; resistance:1.2960 and 1.3020.
AUD/USD is now trending within the descending parallel structure and it may possibly retrace back upwards because of the head and shoulder pattern formed within this channel. The green candle occurred to the AUD/USD makes it more possible for the pair to go upwards; however, traders should pay attention to the resistance 1.0410. At the same time, investors should observe the Forex chart carefully and they would figure out that the 261.8% Fibonacci level of the inversed head and shoulder pattern almost overlapped with the upper side of the descending parallel channel, thus traders should especially pay attention to the 1.4080.
GBP/USD ended with a green body yesterday; although temporarily it is trending within the descending parallel channel structure, a inversed head and shoulder pattern is forming on the chart; what is more, the possible pattern is confirmed by the engulfing pattern occurred consecutively on 23rd Oct 2012 and 24th Oct 2012, which made 1.6150-1.6180 the strong resistance level. Today traders should further pay attention that whether the head and shoulder pattern would form finally. Possible resistance: 1.6150-1.6180 and 1.6300; possible support 1.600 and 1.5900.
The EUR/USD ended with a red candle, which trends within the range of the Forex rate of Last Friday, making 1.2880 the important resistance. Yesterday, the EUR/USD generally moves as what the market has expected, it retraced back upwards when it is trending around the line 1.2880 and showed a big green candle, which trends across the squeezing Bollinger Bands. Temporarily it is relatively proper time for traders to make profits if they go long. Yesterday the EUR/USD ended with a green body; traders had better figure out whether there would be a head and shoulder pattern formed and go long when the pair is trending upwards.
The USD index failed to break out the key resistance 80.2 but ended with a small candle with a red body just a little below it. The USD index may keep trending upward constantly if the rate is able to break out the resistance leve 80.2. Resistance today: 80.2 and 81.0; support: 79.6 and 78.6.
After the USD/JPY has broken out the upper line of the descending triangle with a green body, buying pressure drives in; however, due to the irregular head and shoulder pattern has been formed in the New York secession, the rate of USD/JPY retraced greatly. Now it is trending around the DB of the Bollinger bands on the 4H forex chart, which is also targeted as the 261.8% Fibonacci level. Now seen from the cart, despite that it is less likely for the currency pair to retrace back upwards on the 1H forex chart; it is seemingly forming a relatively regular inversed head and shoulder pattern. Forex traders should pay attention that whether this pattern could cause more buying pressure drive in and keep following whether it would consist for a while.
AUD/USD ended with a hammer with a green body, which greatly lessen the selling strength brought by the doji occurred last Thursday. Now the daily moving average is still moving within the descending parallel channel; the hammer appeared last Friday may help the rate trend back upwards and reach the upper line of the downwards channel. Temporarily the MACD line is almost trending around the zero line but now there are no clear indications where the currency pair would go next.