Forex Charting Tutorials

The monthly chart for eur/usd shows a multi-year uptrend. The zigzag indicator shows 3 waves up from October 2000. She is due for a corrective wave 4 down at some point.

The weekly chart shows sideways consolidation with price trying to resolve the 5 sma channel. Possible downside target could go as low as the 1.50 area, which is strong support, if the the 1.53 recent support area breaks to the downside. For now, we are looking to buy dips until we see that pattern broken. The weekly candle is testing the yellow 5 sma at the time of this post, with the 5 sma low and the green 22 sma as potential downside targets. We will be looking to buy around that area, for a resumption of the uptrend to test the all time high again, and if that breaks 1.65 is possible. Momentum indicators are bearish, however, and the 14 candle mom is divergent.

The daily chart shows the breach of the white descending trendline, and subsequent retrace back below it to support at the aqua colored 100 sma, along with the 50% fib. We see cluster support from the aqua 100, the brown 55 and the green 22 sma’s. A test of this support is probable to the 38 fib around 1.5570 area.