Category Archives: Trend Analysis, Support and Resistance

A GBP/JPY trend reversal may be underway on the D1 time frame. Look for a buy signal on this pair in the main session starting tomorrow morning. You can watch The Forex Heatmap® to confirm any buys and also the live heatmap alert system. Current pricing is in the 132.00 area, overall pip potential is up to the 138.00 resistance area, noted on the chart. This is a ranging currency pair, and the chart looks like a forex reversal pattern and double bottom change of direction off of heavy support on  one of the larger time frame. If you see consistent GBP strength or JPY weakness on the heatmap, this would be your confirmation to buy this pair

GBP/JPY Trend Reversal

The EUR/USD has a resistance price breakout point at the 1.1425 area or just above there. All forex traders can set an audible price alert there. The EUR/USD is currently in a cluster or zone of support and resistance.  The audible price alert would keep traders notified of a potential price breakout. When the price alert hits you can check The Forex Heatmap® for a confirmation buy signal. Look for consistent EUR strength, or USD weakness, or both on the heatmap when entering the buy trade.

The EUR/USD has substantial upside potential and a new trend should form on the larger time frames above the breakout point, and also possibly on the MN time frame. The W1 time frame is pictured below. We use forex support and resistance levels combined with simple exponential moving average trend indicators to plan all of our trades across 28 pairs.

EUR/USD Resistance Price Breakout

We have a great illustrated article and more information on our website with examples of how to trade forex price breakouts.

The CAD/CHF is trending higher on the D1 time frame. The chart below shows the D1 time frame on this pair. Traders can set a price alert for a buy at 0.7330 on this pair, as noted by the yellow line. When the price alert hits, you can check The Forex Heatmap® for a confirmation buy signal. The confirmational buy signal would be consistent CAD strength or consistent CHF weakness, or both.

The upside pip potential is very good, to as high as the 0.7700 area, as noted on the chart. This is about 370 pips of upside potential from here, which is excellent money management ratio. The chart analysis was performed using multiple time frame analysis by individual currency. We use multiple time frame analysis, then apply this analysis method to groups of individual currency pairs like the all seven CAD pairs or all seven CHF pairs we follow to perform the analysis. The trend indicators are 5/12 exponential moving averages.

CAD/CHF Trend Analysis

The EUR/USD trend analysis shows that the W1 time frame is starting to trend to the upside. The current resistance level is at 1.1490, denoted by the yellow line.Traders can set an audible price alert here.

When the price alert hits check The Forex Heatmap® to verify any buy trades. Confirm the buy entry with EUR strength or USD weakness on the forex heatmap. Past the current short term resistance level at 1.1490 we see no nearby resistance. The overall upside pip potential is considerable. The chart you see below is a meta trader platform with easy to set up 5/12 exponential moving averages. We use multiple time frame analysis for the analysis.

EUR/USD Trend Analysis

This is an analysis of the CAD/JPY trading chart you see below on the D1 time frame. The CAD/JPY sold off and then formed a consolidation cluster. It is now reversing back up on the D1 time frame, so a great trend is developing here with 700 pips of upside potential. See yellow lines and price scale on the right side of the chart.

This pair is now trending higher. The current resistance level is about 96.50, and traders should set an audible price alert here. Above this price look for a buy signal on The Forex Heatmap® to confirm the buy.  The trading charts you see are our free forex trend indicators which are exponential moving averages that we use at Forexearlywarning. Traders can set up the indicators across 8 currencies and 28 pairs, and they are free for anyone to set up and use.

Forex Trading Chart Analysis CAD/JPY

Forex Trading Charts CAD/JPY 3-4-2015

The USD/CHF is not in a trend now. The analysis indicates that this pair is consolidating and is going sideways on the H4 time frame in a narrow price range. To catch the next movement and breakout in either direction we are setting a straddle alarm on this pair at 0.9200 and 0.9300 to catch movement in either direction. A straddle alarm is two audible price alerts set above and below the consolidation zone.

After the price alert hist hits you can verify the trade entry in either direction with The Forex Heatmap®. There is plenty of room to move in either direction as there is no nearby support or resistance past the straddle alarm prices. The forex trend indicators you see are 5/12 exponential moving averages that we provide to forex traders at no cost. Price alerts are also free and valuable for detecting price movement on any of the 28 pairs we follow.

USD/CHF Trend Analysis

The GBP/CAD H4 time frame is shown on the chart below. This pair could reverse back up in the main session tomorrow on this time frame as well as the D1 time frame. Check the forex news calendar for the British Pound (GBP) news drivers tomorrow.

Current resistance and price alert point is 1.7780, shown by the bottom yellow line. Set an audible buy alert here and when the alert hits check The Forex Heatmap® for a buy signal. The target resistance area is 1.8050. The majority of the exotic pairs on the market have been retracing against their major trends, so this up cycle would be expected to be 2-3 days, similar to the recent retracements and up cycles on the GBP/AUD and GBP/NZD. This happens frequently when pairs with one common currency follow each other like dominoes falling, we call this the domino effect. In this case the GBP/CAD should follow the GBP/AUD and GBP/NZD recent moves up. The H4 time frame on the chart below is some simple 5/12 exponential moving averages set up on the meta trader charting platform.

GBP/CAD H4 Time Frame Analysis

This is our  AUD/JPY trend analysis  using the W1 time frame. The analysis indicates that this pair has a resistance breakout point at 96.50 on the W1 time frame. Traders can set an audible price alert here on your trading platform. Above that price when the alert hits,  we would be looking for a buy signal on The Forex Heatmap® forex heatmap. The next major resistance point past the alert price is around 102.00, noted by the yellow lines. So the overall pip potential is around 550 pips, which is an excellent risk/reward ratio for this trade.

AUD/JPY Trend Analysis

This is the chart analysis of the NZD/JPY on the D1 time frame. The trend chart below indicates that the NZD/JPY is cycling down on the D1 time frame. Current support level is at 86.25, see the two yellow lines on the right.

Traders should set an audible price alert at this support level. When the alert hits and below that price, we would look for a confirmation sell signal on this pair on The Forex Heatmap® forex heatmap. If this pair breaks lower the next target support area is around 84.75, or about 150 pips below the alert price. The charts you see below are 5/12 exponential moving averages set on the meta trader trading platform. These simple trend indicators can be set up on any forex brokerage platform.

NZD/JPY Chart Analysis

This is an analysis of the  AUD/CAD on the D1 time frame. The AUD/CAD is trending down on the D1 time frame. Current support level is 0.9720, you can set an audible price alert here. When the alert hists look for a sell signal on The Forex Heatmap®.

The next support level below the price alert point is at 0.9575, see the yellow line on the chart. So there is about 135 pips of potential on a sell. This would be a good price area for some profit taking. Traders can check the W1 time frame also, it is close to starting a downtrend also, and this pair could move much lower than the 0.9575 support level.

This analysis was performed with some very simple exponential moving averages set up on 5 and 12 periods. These moving average forex trend indicators that are available free to any forex trader.

Currency Pair Analysis AUD/CAD

The EUR/CAD chart analysis on the H4 time frame shows one resistance level at 1.4120, see yellow line on the right. Traders should set an audible price alert here for an upside price breakout. When the price alert hits then you can confirm any buys with The Forex Heatmap® forex heatmap and check for consistent EUR strength or CAD weakness, or both.

The upside potential on any buy trades is to the next resistance area at the 1.4400 area, see the yellow line on the left. This is nearly 300 pips of upside potential, which is the benefit of working with the higher time frames like the H4 and larger.

The free forex indicators you see below are for monitoring market trends. Thy are a basic open high low close barchart with some very simple 5/12 exponential moving averages attached to the EUR/CAD on the H4 time frame.

Forex Chart Analysis EUR/CAD

The EUR/NZD chart analysis is shown below for the H4 time frame. The EUR/NZD is currently consolidating inside of a price range. We are setting price alerts on either side of the support and resistance cluster to detect movement and to detect when this pair will form a new trend going in either direction. The alert points are shown by the yellow lines on the chart you see. This is called a straddle alert.

There is very good pip potential past both price alert points in either direction, and you can see the pip potential on the chart image below. If this pair falls it has as much as 500 pips of potential to the next support.

EUR/NZD Chart Analysis

When a currency pair is inside of a cluster on any of the larger time frames, it is best to not trade that pair. You should set price alerts on either side of the cluster to detect a breakout in either direction, especially when the pip potential is large, like in the example above. This technique works on any pair. When the price alert hits you can always check The Forex Heatmap® forex heatmap to verify any trade entries. By trading 28 pairs you can avoid clusters and move to another pair or another currency until this pair breaks out in either direction.

These forex indicators for monitoring trends are a very simple and easy to set up charting system. Traders can use them to perform their market analysis. They are exponential moving averages set up on a 5 and 12 time period.