Daily Forex Markets Analysis (26/2/2013)

Markets are characterized by EURO weakness following the Italian elections, while there is a tendency for the JPY to rise. GBP has started to fall again while the USD dollar seem. Avoid selling oversold pairs at the moment as there is a lot of uncertainty in the market.

GBPUSD (4-HOUR) Sell

 

Why Sell

-Pair is falling a clear down trend following also the Moodys downgrade

– Trend and Wave indicators are pointing down

-Extreme indicators are pointing overbought

– Pair has completed an upward correction and should be falling now. Shown by the 2 consecutive down candles. Be careful with the up candle that has formed now.

 

EURAUD (4-HOUR) Sell

 

The trade was suggested yesterday and earned 150 pips. Here is a chance to jump back to this trade as it has retraced significantly.

 

Why Sell

-Pair is following a down trend line

– Trend indicators are pointing down

– It has corrected significantly since its big down move yesterday.

Note: Wave indicators are still pointing down and not yet overbought which may mean further correction may occur.

 

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system under a 4-hour period. You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.