The Downward Trend is Gathering Pace

Alexey Panasenko  |

Forex technical analysis helps to answer the questions: How to interpret Forex rates? Buy? Sell? Close a trade? Take profit or let it run for some more time? Will it face reversal or go trhough correction? Accept a loss and “flip over” or wait for some more time? Finally, how to define Forex trend?” All these questions drive a trader (mainly beginning) crazy, if he does not know the answer. By the way, who will dare to claim to know the answer? Forex exchange rates are cruel towards one's self-confidence and arrogant manner.

Nevertheless, it is subject to regularities and daily technical analysis forex. There are plenty of strategies on Forex trend lines. We are not so much interested with the direction of fx rate along major lines (this is interesting too, though) as with the Potential of the Forex trend. The main purpose of our Forex technical analysis report named "Potential of Trend" is to find if current price goes through correction either we face a trend.

S&P 500

Monthly: the downward trend is gathering pace. Apparently, we can wait when the price reaches its medium-term target - 1574.7 - as soon as by spring. An outlook of drop could be even more far-reaching.

Weekly: ADX activity is growing, so we are waiting when the price reaches 1741.6

Daily: local accumulation within the Bollinger envelopes. Support is at 1894.4, resistance is at 1897.3 (the bottom and middle bands of Bollinger respectively)

Expectations: In general, we expect drop to 1854.4 and 1820.1, but a small preliminary upward pullback to 1897.3 is possible.

Solutions: Sell at 1854.4, 1820.1 Buy at 1741.6.


Monthly: Another surprise from the bottom Bollinger band, which, despite the bullish correction in January, fell to new Lows - 18.47. This very mark is the relevant medium-term goal for oil.

Weekly: the middle band of Bollinger remained unfinished (43.08), from where we could definitely sell. It is the question whether this height of correctin will be ensured (in the background of the core zone, which hosts ADX)

Daily: the upper Bollinger band actively represents itself as crucial resistance, so the most likely scenario is a direct drop to the bottom band (27.66)

Expectations: drop to 27.66

Solutions: we should sell to 27.66


Monthly: the price has reached the middle Bollinger band (1181.82) and with equal probability can switch to a downward movement from current levels (see the black arrow.) and grow to the upper band (1322.62)

Weekly: bullish convergence of oscillator can talk about the high probability of growth in the direction of 1322.62. But a new test down to 1040.34 (the bottom band) is also a probable event

Daily: the price has broken the upper envelope thus enabling a roll back to the middle Bollinger band (1113.48), which will be open the way to purchase 1322.62

Expectations: drop to 1114.38 followed by growth to 1322.62

Solutions: buy from 1114.38 to 1322.62

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


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