Forex technical analysis helps to answer the questions: How to interpret Forex rates? Buy? Sell? Close a trade? Take profit or let it run for some more time? Will it face reversal or go trhough correction? Accept a loss and “flip over” or wait for some more time? Finally, how to define Forex trend?” All these questions drive a trader (mainly beginning) crazy, if he does not know the answer. By the way, who will dare to claim to know the answer? Forex exchange rates are cruel towards one's self-confidence and arrogant manner.
Nevertheless, it is subject to regularities and daily techical analysis forex. There are plenty of strategies on Forex trend lines. We are not so much interested with the direction of fx rate along major lines (this is interesting too, though) as with the Potential of the Forex trend. The main purpose of our Forex technical analysis report named "Potential of Trend" is to find if current price goes through correction either we face a trend.
We'll choose any four conditional prices of an active status of price and will check, how indicators behaved before this growth. It is clear that the bottom one (ADX) started to grow, RSI prompted about the direction correctly. That is the method we will use for our task. Bollinger bands are another method we will apply to search for acceptable entry and exit points. One of their properties is movement of price within upper and bottom bands and bottom moving nabd. All that will help us to estimate trend and forecast market events for our instruments.
Daily chart: the pair has confirmed flat scenario failing to touch middle Bollinger band (1.0699). Support level is still at 1.0543 (lower Bollinger band). Н4: more narrow flat corridor is within Bollinger envelopes range (1.0565-1.0665). ADX parameters are growing but not trending yet. So the pr
Daily chart: yesterday bears managed to protect resistance level in 1.2574 region (upper Bollinger band), Bollinger bands are narrowing down within 1.2346-1.2574 corridor. Considering growing trend ADX, this consolidation won't be long. Н4: here two supports are in 1.2469-1.2483 and 1.2384 region
Daily chart: support level in 119.00 region (lower Bollinger band) hold bearish pressure, despite of active trend ADX. So if the price breaks it, we may expect mid-term decline towards 105.00. On the contrary bulls have a chance to reverse the price to the upside, if support level in 119.00 won't