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Forex Trading Signals

Forex Trading Signals: February 2015

"If you trade EUR against the USD in 2015 don’t expect something more than Bear Market Rallies"

□ Market: Foreign Exchange

□ Assets: EURUSD, USDJPY, GBPUSD

Forex Market Outlook for 2015

Lately, the Euro has gained some ground against the US Dollar. On January 26, 2015, EURUSD dipped below 1.11 (intraday low 1.10965), but now it’s trading above 1.13, supported by Eurozone manufacturing production, which rose at its fastest pace in six months. This short rebound may push EURUSD slightly higher (perhaps to 1.15), but it appears to be a technical move. Most likely, 2015 will be the year of the US Dollar. The Fed is the only major central bank comfortable with its currency strengthening against others. Among the five major currencies (USD, EUR, CHF, JPY, and GBP), only the US Dollar is expected to offer higher interest rates in 2015. The Eurozone faces deflation and slow growth, making monetary easing the only option. The same applies to Japan, and as BoJ’s Haruhiko Kuroda said recently, a weaker Yen is not hurting Japan’s economy. In this volatile environment, EURUSD is expected to begin a new downtrend in the coming weeks. Meanwhile, the UK economy is stronger than the Eurozone’s, which will likely affect the EURGBP exchange rate in the coming months. Overall, in 2015, the USD should be the strongest performer against the Euro, British Sterling, and Japanese Yen, while the Euro is expected to be the weakest against the USD, Sterling, and Yen.

Our Previous Trading Signal

{slider= Previous Forex Trading Signal}

In our previous signal, we mentioned EURUSD and GBPUSD, forecasting a short-term correction before the downtrend resumed. Only GBPUSD showed a solid reaction. We noted January 8 as a likely turnaround date for GBPUSD, which then started a bullish correction that reached 1.5270 a few days later. As mentioned before, bear market rallies are all we can expect when trading against the USD in 2015.

🔗 Link: » Here is the Full Trading Signal

Forex Trading Signals

Forex Market Outlook & Trading Signals for January-February 2015

□ Market: Foreign Exchange

□ Assets: EURUSD, USDJPY, GBPUSD

The US Dollar ended 2014 with record gains of over 12% against a basket of major currencies. This was the best USD performance in the past 10 years. In this analysis, we will explore what to expect next in the Forex market for EURUSD, USDJPY, and GBPUSD as 2015 begins.

The Previous TCI Signal

In November 2014, we noted that December is traditionally the best month to buy the Euro against the US Dollar. However, the long-term strength of the USD outweighed this trend, and the forecast did not hold—ending a long streak of successful Forex signals in 2014.

Foreign Exchange Market Outlook

The Euro remains under heavy pressure due to political, economic, and psychological factors. With the European Central Bank expected to ease monetary policy aggressively in 2015, many hedge fund managers predict EURUSD could reach 1:1 within the next 12 months. ECB President Mario Draghi recently said the bank is preparing to adjust its measures in early 2015. On the other hand, demand for the US dollar stays strong because of high US growth rates and expectations for higher interest rates starting in the third quarter of 2015.

TCI on EURUSD, GBPUSD, and USDJPY

The Trading Center Indicator (TCI) is a unique technical analysis tool developed by TradingCenter.

Here are the TCI readings for EURUSD, GBPUSD, and USDJPY.

◙ EURUSD TCI Indications

The current TCI reading for EURUSD is -6.75%. This indicates an oversold market, so a normal correction is likely before the US Dollar becomes strong again. Remember, this is the year of the US Dollar, so be cautious and pay close attention to upcoming fundamental updates before trading against the USD.

Forex Trading Signals

The US Dollar Against Other Major Currencies (October–November 2014)

■ Market/Asset: Forex / The US Dollar against other major currencies

■ TCI Forecast: USD correction is ending, followed by a new USD uptrend (↑)

■ Momentum: The new uptrend is expected to begin in the last days of October 2014 and peak by late November 2014

Foreign Exchange Market Outlook

The strength of the US Dollar over the next 6 to 12 months is clear, but Forex currencies don’t move like stocks, so this strength won’t follow a single straight trend. In September 2014, the US Dollar rose rapidly against other major currencies, as shown in the TCI tables below. This fast move created an overbought US Dollar market (EURUSD, USDJPY, GBPUSD), making a correction inevitable. Neither the Fed nor the ECB wants the USD to move too sharply, as this could hurt the real economies in both regions.

The US Dollar’s rise will happen at the right time and with proper market momentum. We expect USD bullish runs of 4–6%, followed by corrections of 2–3%, with cycles lasting 3 to 4 months overall.

Evaluating the Previous Forex Trading Signal on USDJPY (September 2014)

In our previous Forex trading signal, we predicted a correction for USDJPY. At that time, USDJPY was trading at 108.626. We also identified 110.75 as the first strong resistance level. On October 1st, USDJPY reached 110.08 and then began to correct. By October 15th, USDJPY hit a local low of 105.193. The signal was confirmed.

🔗 The Previous Forex Signal: » Forex Trade Signals -USDJPY September 2014

Forex Trading Signals

Free Forex Trading Signals: EURUSD, GBPUSD, USDJPY

Historically, December is the best month to buy the Euro against the USD.

□ Assets: EURUSD, USDJPY, GBPUSD

□ TCI Forecast: Given neutral news, the Euro is expected to turn bullish against the US Dollar (↑), starting a new uptrend in the first few days of December 2014.

□ Potential Reversal Dates: November 26, 2014, or December 3, 2014 (based on TCI readings).

In most of our 2014 Forex reports, we have emphasized the strength of the US Dollar against other majors. The USD is in a strong uptrend against EUR and JPY due to the growing US economy and the expected rise in US interest rates starting in 2015. Meanwhile, many other major currencies suffer from slow growth or recession, as with Japan. Considering these fundamentals, the long-term USD uptrend will likely continue in the coming months. Although the USD uptrend is strong, corrections are inevitable after large gains. Our analysis shows that December 2014 will probably be a month when the US Dollar loses some ground (corrects) against other majors, especially the Euro.

Evaluating the Previous Trading Signal from TradingCenter.org

Our previous trading signal was one of the best we’ve ever published on TradingCenter.org. Not only did we forecast the USD’s rise against all majors in November 2014, but we also predicted the exact timing of the new uptrend starting in the last days of October.

We said exactly: “USD correction is coming to an end; we expect the formation of a new USD uptrend (↑). The new uptrend is expected to start in the last few days of October 2014 and peak by late November 2014.”

At that time, USDJPY was trading at 106.875; now it is around 118.00. That’s a huge gain in pips in just one month.

Forex Market Current Outlook

The Japanese Yen has faced heavy selling pressure since October 31, 2014, after the Bank of Japan announced more stimulus and following a disappointing GDP report. The British Pound Sterling is also under pressure due to weak inflation data from the Bank of England. In the Eurozone, the Euro continues to struggle with slow growth and low inflation, and drops every time ECB President Mario Draghi speaks. If you hold a long Euro position, you don’t want to hear Mario Draghi speak these days.

Forex Trading Signals

📶 Forex Trade Signals: USDJPY September 2014

◙ Forex Asset: USDJPY

◙ TCI Forecast: Correction (↓) is closing

🌐 USDJPY Outlook

In numerous previous articles, we have emphasized the anticipated strength of the US Dollar. USD interest rates are expected to rise during 2015 as the Federal Reserve’s concerns about inflation begin to outweigh its concerns about unemployment. Over the past few weeks, the US Dollar has demonstrated significant strength.

This analysis focuses on the US Dollar against the Japanese Yen. USDJPY is currently trading at 108.626, notably higher than the 104.337 level recorded at the beginning of September 2014. We will examine whether the current bullish trend in USDJPY is likely to continue or if a correction is approaching.

📝 USDJPY Analysis Preface

As shown in the chart below, USDJPY has been surging for quite some time. Just two years ago, in September 2012, USDJPY was trading around 77.00—now it stands above 108.00. This significant uptrend can be attributed to the Bank of Japan’s highly accommodative monetary policy over the past two years, aimed at boosting the growth potential of Japan’s struggling economy.

📈 USDJPY Technical Analysis - What happens next regarding USDJPY?

Regarding the long run, the ultimate target for USDJPY lies between 119.00 and 124.00—levels last seen in 2006. Honestly, I believe that during 2015, we will see USDJPY trading around 120.00. However, this won’t happen in just one or two months; the current levels must be fully absorbed before USDJPY can move higher.

  1. Free Forex Trading Signals: EURUSD September 2014
  2. EURUSD Forex Trading Signal June 2014
  3. GBPUSD April 2014
  4. Forex Trading Signals: EURUSD April 2014

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