Weekly Report 26/09 – 30/ 09/ 2011
The pair is still biased to the downside, where consolidation below 1.3665 supports the bearishness that could lead the pair to test 1.3320 and maybe towards 1.3110. Our expectations are based on the breach of 61.8% Fibonacci correction as shown above; in addition to the possible harmonic formation that is likely a Bat pattern which will be completed at 88.6% Fibonacci correction of CD leg at 1.3110. In result, we expect the downside movement to extend this week.
The trading range for this week is among the major support at 1.3110 and the major resistance at 1.3840
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3395 | 1.3320 | 1.3250 | 1.3180 | 1.3110 |
| Resistance | 1.3480 | 1.3530 | 1.3600 | 1.3665 | 1.3720 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3480, and take profit in stages at (1.3320 and 1.3110) and stop loss with a daily closing above 1.3600 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 26/09 – 30/ 09/ 2011
The pair is still mildly correcting the sharp declines that occurred during the previous period, where the secondary image of the four-hour interval suggests that the upside actions from the pivotal support of 1.5330 should be treated as a recovery. The bearishness is still favored during this week due to the negativity of the weekly time scale as the pair didn’t reach the scientific technical objective of the double top formation. We might see some kind of fluctuation due to the oversold sign on Stochastic, but if 1.5330 is taken, the pair will neglect this sign.
The trading range for this week is among key support at 1.5000 and key resistance at 1.5820.
The general trend over short term basis is to the downside targeting 1.4225 as far as areas of 1.6875 areas remain intact.
| Support | 1.5390 | 1.5330 | 1.5255 | 1.5180 | 1.5075 |
| Resistance | 1.5515 | 1.5630 | 1.5690 | 1.5780 | 1.5820 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5495 targeting 1.5180 and stop loss above 1.5690 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 26/09 – 30/ 09/ 2011
The pair has slightly declined after approaching the key resistance level of 76.95, forcing Stochastic to offer a negative sign once more. Henceforth, we believe that staying aside will be the best technical choice until it breaches the aforesaid resistance to make sure that our suggested Elliott count is accurate enough to send the pair higher. A break of 75.80 with a four-hour closing below it will negate the reversal possibility and will trigger a panic sell-off.
The trading range for this week is among key support at 74.85 and key resistance now at 78.45.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.10 | 75.80 | 75.60 | 75.25 | 74.85 |
| Resistance | 76.65 | 76.95 | 77.20 | 77.60 | 77.90 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Swiss Franc (CHF)
Weekly Report 26/09 – 30/ 09/ 2011
The pair is still trading positively, affected by the mentioned harmonic structure, while the pair is currently trading above the structure’s first target, which represents 38.2% Fibonacci correction at 0.8850. Therefore, the upside move could extend this week; however, a downside correction is possible before the pair rebounds to the upside.
The trading range for this week is among the major support at 0.8850 and the major resistance at 0.9400.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400
| Support | 0.9035 | 0.8920 | 0.8880 | 0.8850 | 0.8780 |
| Resistance | 0.9150 | 0.9190 | 0.9230 | 0.9335 | 0.9400 |
| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.9035, and take profit in stages at (0.9230 and 0.9400) and stop loss with daily closing below 0.8920 might be appropriate. | ||||
Canadian Dollar (CAD)
Weekly Report 26/09 – 30/ 09/ 2011
We can see a clear breach of 61.8% Fibonacci correction at 1.0300, affected by trading outside the descending channel as shown above, where the pair consolidated above 0.9970-1.0010. Now, we expect the upside movement to continue towards 76.4% Fibonacci correction at 1.0510, while our positive expectations remain strong as long as the pair is stable above the mentioned correction.
The trading range for this week is among the major support at 0.9970 and the major resistance at 1.0690
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0290 | 1.0225 | 1.0185 | 1.0125 | 1.0085 |
| Resistance | 1.0375 | 1.0400 | 1.0500 | 1.0550 | 1.0690 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0290, and take profit in stages at (1.0400, 1.0510) and stop loss below 1.0185 might be appropriate | ||||
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