Today on USDJPY - Daily and H4 charts support Short trades, but...

On the Daily chart above, we would notice that price is in a strong down trend: price pattern keeps forming lower highs and lower lows. In addition, price has broken a very strong support level - the most recent Weekly swing low @ 91.71 (which we've highlighted using the blue broken line on the Daily chart) downward. These are strong signs that the bears are fully in control. However, price has currently hit the lower edge of the downward channel - a potential support area, and it's yet to close below it; also, price is yet to gather enough momentum to break below Friday's low (the last trading day low). This current price action is a warning that, though price is in a strong down trend, an upward retracement might be imminent. Consequently, let's keep these support areas in mind. Conservative traders would probably prefer to see price close and break decisively below the lower edge of the downward channel and Friday's low, respectively.

On the H4 chart above, price has broken the most recent swing low @ 91.42 (which we've highlighted using the blue broken line) downward. That sustains our bias in favor of a downward price move. The white horizontal line @ 92.24 highlights the most recent swing high, and as long as price stays below it - in the absence of any new and lower swing high - our bearish or downward bias remains intact. But, let's not forget the possible price retracement signs discussed on the Daily chart.

However, we still need our Hourly charts - using Fibonacci retracement levels and important resistance levels - to seek promising areas to take our Short positions. Price pattern on the Hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today's down-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.

How To Make A Smart Investment Decision

Personal Note: This Peter's article on investing/personal finance is succinct and, I believe, easy to understand. While he used the stock market as an example, the lesson applies to various investment vehicles (including the currency market) that are available to us in this information age.

Author: Peter Gitundu

It goes without saying that the purpose for investing is to get returns from the money that one puts into the pool. For that reason therefore, every investor is out looking for what he may term as a smart investment. While the word smart is an acronym for some valuable characteristics, not many people have internalized it in as far as their money is concerned.

Putting money in a scheme is not something to be taken for granted. One needs to have a specific reason for doing so. The reason could be that one is saving for his children education, or saving to buy a home in future. With such goals in mind, one is able to choose the right kind of security. You therefore need to carry out a market survey to achieve this goal.

When you know why you are putting your money in a scheme, you are then able to measure the kind of return to expect. This is to say that once you know which type of security to buy, you are in a position to calculate the rate of return to expect. In most cases this will be determined by the market trends, but if you check out the performance of that security in the past, you will get a general idea of what to expect.

As you venture into the stock market, beware that there are many types of securities that you can buy. One way to determine which one to go for and which one to avoid is by comparing the risk versus the return. They both tend to move towards the same direction in that, as one increases the other one does too. This way, you will be able to determine whether the scheme is achievable or not.

Article Source: http://www.articlesbase.com/investing-articles/how-to-make-a-smart-investment-decision-1209930.html

About the Author:
Peter Gitundu Creates Interesting And Thought Provoking Content on Investment. For More Information, Read More Of His Articles Here SMALL BUSINESS MENTOR If You Enjoyed This Article, Make Sure You Read My Most Recent Posts Here WHAT DEFINES OUR LIFE

Today on GBPUSD - Daily and H4 charts support Long trades.

On the Daily chart above, while the Monthly and Weekly charts are still giving bearish signals, the Daily chart has signaled move in the opposite direction. The negative MACD Divergence, which was a primary factor that sustained our bearish bias for weeks, has been invalidated: as seen on the lower pane of the chart, MACD has crossed its Signal Line upward. Also, yesterday, price closed above a strong resistance level - a Daily swing high @ 1.6623 (which we've highlighted using the lower blue broken line). The next critical resistance level - the year high @ 1.7042 (which we've highlighted using the upper blue broken line) is a defining level that, if broken upward, would invalidate every indicator supporting a protracted bearish move that we discussed throughout the entire month of August. In all, from a day-trade perspective, we have a strong case in favor of a continuous upward price movement.

On the H4 chart above, price has broken the most recent swing high @ 1.6591 (which we've highlighted using the blue broken line) upward. That sustains our bias in favor of an upward price move. The green horizontal line @ 1.6479 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact.

However, we still need our Hourly charts - using Fibonacci retracement levels and important support levels - to seek promising areas to take our Long positions. Price pattern on the Hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today's up-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.

Today on USDCHF - Daily and H4 charts support Short trades.

On the Daily chart above, we would notice that price has decisively broken below the 1.0600 level, which we've been discussing for a few weeks. Consequently, there is the high probability of price moving further downward. The dollar has been under intense pressure as investors bet on economic recovery through higher yielding currencies. This fundamental perspective only strengthens the validity of the price action seen on our charts. Although - based on the Weekly and Monthly charts - we still have a number of critical support levels that the bears will have to face, the coast is currently clear for a continuous downward price movement.

On the H4 chart above, price has broken the most recent swing low @ 1.0430 (which we've highlighted using the blue broken line) downward. That sustains our bias in favor of a downward price move. The white horizontal line @ 1.0487 highlights the most recent swing high, and as long as price stays below it - in the absence of any new and lower swing high - our bearish or downward bias remains intact.

However, we still need our Hourly charts - using Fibonacci retracement levels and important resistance levels - to seek promising areas to take our Short positions. Price pattern on the Hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today's down-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.

Today on EURUSD - Daily and H4 charts support Long trades.

On the Daily chart above, the coast seems so clear for the bulls: price has broken the year high - a very major resistance level @ 1.4447 (which we've highlighted using the blue broken line) upward. Pls NOTE that price didn't just break this level, it closed comfortably above it. Also the downward trend-line was broken upward without much effort. These two signs, especially the broken year high, simply tell us there's a high probability that the bulls might be reigning for a considerable period of time. Really, the price action is so clear that there isn't much to analyze.

On the H4 chart above, price has broken a recent swing high @ 1.4359 (which we've highlighted using the blue broken line) upward. That shifts our bias in favor of an upward price move. The green horizontal line @ 1.4190 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact.

However, we still need our Hourly charts - using Fibonacci retracement levels and important support levels - to seek promising areas to take our Long positions. Price pattern on the Hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today's up-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.

Is the GBPUSD having a change of mind?

Since the beginning of August, higher time frame charts have been signaling the possibility of bears dominating the GBPUSD for a relatively protracted period. However, while the Monthly and Weekly charts are still giving bearish signals, the Daily chart above seems to be having a change of mind: The negative MACD Divergence has been weakened and MACD is about crossing its Signal Line upward. MACD's close above its Signal Line at the end of today will invalidate the negative Divergence. Also, we would notice that after price broke decisively above a downward trend-line (the down trending red line), it seems determined to close above the resistance area - a previous upward trend-line (the red dashed line), which we've been discussing for days. The next critical resistance level that might halt the bullish surge is a Daily swing high @ 1.6623 (which we've highlighted using the blue broken line).

On the H4 chart above, price has broken the most recent swing high @ 1.6442 (which we've highlighted using the blue broken line) upward. That shifts our bias in favor of an upward price move. The green horizontal line @ 1.6321 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact.

However, we still need our Hourly charts - using Fibonacci retracement levels and important support levels - to seek promising areas to take our Long positions. Price pattern on the Hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today's up-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.

GBPUSD on Labor Day in the United States

Please NOTE: This is a belated analysis. I couldn't post it at the appropriate time due to connection issues, but I believe it'll still be useful for future reference.

Today, we have Bank Holiday in the US. Consequently, quite a number of traders won't be in the market, and there might be thin volume. I was unable to have analysis posted during the London session; however, current price action on the GBPUSD pair seems to be giving us new signs. This analysis might be useful for those of us trading the late New York session:

On the Daily chart above, price is currently at a resistance area: a previous upward trend-line (the red dashed line), which we've been discussing for some days now. Though, we are yet to know if price would break above it, or if price would be forced to retreat downward, let's have it in mind that the bulls might be having a tough time around this area.

On the H4 chart above, price has broken the most recent swing low @ 1.6364 (which we've highlighted using the blue broken line) downward. That shifts our bias in favor of a downward price move. The white horizontal line @ 1.6443 highlights the most recent swing high, and as long as price stays below it - in the absence of any new and lower swing high - our bearish or downward bias remains intact.

On the Hourly chart above, we have the price action buttressing our bearish bias: price has broken the most recent swing low @ 1.6364 (that we've highlighted using the blue broken line), which also happens to be H4 most recent swing low. Also, we have a negative MACD divergence. Please keep this current price action in mind as you place your trades.

Have a happy Labor Day.