Free Forex Signals – Watching Potential Double Bottom

EURUSD Daily Analysis: EURUSD has rallied over 360 pips from it's August lows (around 1.0850) after the Chinese decision to allow the 'free market' to depreciate the yuan (which, non-coincidentally, will benefit their domestic exports). That rally forms the right bottom of a double bottom pattern we are closely watching, with the left bottom being the July lows around 1.0805, and the neckline at 1.1210.

This makes 1.1210 a key technical resistance level to watch - a break above this level confirms the double bottom pattern and makes a potential rally toward 1.14 likely. If we stay below 1.12 we are likely to see more consolidation as the markets weigh the likelihood of a September Fed rate increase in light of the yuan devaluation. Given past Fed statements our money is on the Fed raising rates despite the risks due to a) their view that the US economy is healthy, b) fear of future inflation and bubbled assets, and c) because after a historic run of zero interest rate policy (ZIRP) the Fed feels pressure to stick to their words in point A.

4h Chart

Our Preferred Trades*: In the short-term we are flat due to lack of a convincing trend in either direction, but aggressive traders could look to find support at 1.1030 (50% retracement of August rally) and resistance at 1.1200 for some ranging day trades.

Long-term Trend Analysis Chart

Yesterday's EURUSD SwingPRO Signal Result: No trades triggered yesterday.

Today's SwingPRO Signal: Flat. See preferred trades section above.

*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and "our preferred trades." For example, if we prefer "going short" or "selling a rally" then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer "going long" or "buying a dip" then we would look for bullish candlestick signals on price drops or near support levels.

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  1. Big Steve
    August 18, 2015 at 03:16Reply

    I think it will break the bodies of the last three monthlies before it hits bottom. Could be considerably more.

    • Profile photo of PipHut Team
      PipHut Team
      August 18, 2015 at 07:11Reply

      I’m keeping an eye on the 1.1030 level (50% retracement) for a possible buy signal.

      • Big Steve
        August 18, 2015 at 13:11Reply

        I wake up this morning and we’re dead on your 1.1 03.

        Dang. That’s eerie.

  2. Polad
    August 18, 2015 at 09:05Reply

    Hi, Mark.
    I’m trying to solve the puzzle – the amount of USD in long positions is being increased up to 40 billiard from one hand and no reflex in the real forex market, from the other.. What’s wrong? To my mind the overwhelming majority of traders are waiting for September FRS meeting concerning interest rate….What do you think?

    • Profile photo of PipHut Team
      PipHut Team
      August 19, 2015 at 09:29Reply

      Hi Polad, which data source are you looking at for the USD position?

  3. Profile photo of izuchukwu
    August 18, 2015 at 10:32Reply

    hi mark,
    dont know why am getting the DTI signals late…might have missed out on the email alerts..pls work on it

    • Profile photo of PipHut Team
      PipHut Team
      August 19, 2015 at 09:30Reply

      Hi @izuego – some of the email servers were effected by the recent server outage. We expect this to be fixed by tomorrow. Thanks for your patience.

  4. Profile photo of izuchukwu
    August 18, 2015 at 13:46Reply

    anyways…despite a poor data from the USD…investor bought the dollar against all odds…thus the technicals knocked off fundamental decisions…. a have a buy at 1.1030 but since its been breached..I have 1.10 as my last support for the downside.. let’s see what’s next

  5. Profile photo of izuchukwu
    August 19, 2015 at 06:09Reply

    and we got a bounce from above 1.10 levels…nice move…thanks mr market for the pips…and do have a great day guys

  6. Profile photo of shedrack udeh
    shedrack udeh
    November 13, 2016 at 19:22Reply

    please could you activate me for your free signal or
    Esteem Regards

  7. calça biotipo atacado
    May 9, 2017 at 18:48Reply

    Com um sistema fácil de enfraquecimento, mas bastante eficiente, tênis é uma boa indicação para corrida.

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