25 April, AtoZForex, the Netherlands – Fibonacci is a commonly referred technical analysis tool utilized poorly by almost every trader out there due to lack of credible knowledge. Weekly Fibonacci analysis, if conducted correctly, can give an edge to traders not only to find the entry levels but also to find exit levels as well as entry avoidance levels. This brilliant technical analysis tool will give traders even better opportunities if it is combined with moving averages and price action trading theories.
Ahead of this week’s main fundamental announcements such as the FOMC statement, SNB Chairman Jordan’s speech, RBNZ Rate Statement as well as the GDP figures announcement from the USA and the UK, weekly Fibonacci analysis webinar will give traders the mainstream levels for the entire week for EURUSD, USDCAD, GBPUSD, USDJPY and AUDNZD pairs.
EURUSD annual Fibonacci wave
EURUSD has been relying on its annual Fibonacci wave which occurred between the weekly candles of April 12 and May 10 2015. This wave’s significance can be seen especially at 0%, 38.2%, 61.8%, 88% and 100% Fibonacci retracement zones.
At the moment on weekly time frame EURUSD is moving according to its Monday correction in-line with its price action development. On daily time frame the pair has been making lower highs and lower lows for the last couple of weeks which are signs of bearish trend continuation.
On H1 time frame the bearish pressure can be seen clearly. Besides lower lows and lower highs, on hourly time frame both 50 and 200 period SMAs are sloping downwards as well.
Current EURUSD resistance can be seen at 1.1295 – 1.1305 zones, thus it would be a probable correction wave target where traders can short EURUSD from.
EURUSD Short (SELL Limit) @ 1.1299, SL@ 1.1340, TP1@ 1.1265, TP2@ 1.1105, TP3@ 1.0995
GBPUSD – reverse H&S pattern
Cable has two confirmed real Fibonacci waves as it can be seen from the live analysis video above. Additionally the current market development on weekly time frame shows us a possible upside-down H&S formation. If the H&S formation is confirmed the GBPUSD pair would likely to rise up to 1.4995 level prior to the actual Brexit referendum.
The bullish move is also supported by the bullish price action development on daily time frame as well, thus we could expect GBPUSD to rise up to 61.8% Fibonacci retracement zone at 1.4520 level before showing signs of bearish correction.
GBPUSD Short (SELL Limit) @ 1.4520, SL@ 1.4555, TP1@ 1.4470, TP2@1.4435, TP3@ 1.4370