Weekly Report 03/10 – 07/ 10/ 2011
The pair is trading around critical levels as shown on the provided daily chart, where these levels are around 1.3320, and represent 78.6% Fibonacci correctional level of the XA leg of a suggested harmonic structure, where its first Potential Reversal Zones at 1.3110, while consolidation below 1.3320 suggests reaching the mentioned level. In fact, the bearish opening gap seen today could trigger heavy fluctuations and maybe an upside correction, but any trading below 1.3420 suggests the extension of the intraday downside movement, while stability above 1.3535 weakens our negative expectations significantly.
The trading range for this week is among the major support at 1.3015 and the major resistance at 1.3665
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3320 | 1.3250 | 1.3205 | 1.3180 | 1.3110 |
| Resistance | 1.3395 | 1.3420 | 1.3470 | 1.3535 | 1.3600 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3395, and take profit in stages at (1.3250 and 1.3110) and stop loss with daily closing above 1.3470. | ||||
Great British Pound (GBP)
Weekly Report 03/10 – 07/ 10/ 2011
The pair started the week showing obvious bearish tendency as same as it closed the previous where it stabilized below the previous detected support-turned into resistance- at 1.5555. The secondary image of the daily basis shows how it formed consecutive reversal candlesticks indicating that the upside recovery started at 1.5330 zones might have been limited already and it is on the way to resume drawing the CD leg for the potential double harmonic pattern which consists of huge Crab pattern and a smaller Bat pattern as seen on the major weekly graph. A break of 1.5330 will trigger panic selling interests over upcoming period. To conclude, the bearishness will be in favor during this week as far as areas of 1.5780 remain intact.
The trading range for this week is among key support at 1.5075 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 | 1.5555 | 1.5630 | 1.5690 | 1.5780 | 1.5820 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5555 targeting 1.5180 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 03/10 – 07/ 10/ 2011
In line with our Friday's reports, the pair succeeded in clearing the initial resistance of 76.95 as seen on the main four-hour chart. This technical breakout has assisted it to achieve a positive daily closing above SMA 50 over daily studies-secondary image- and thus, the suggested Elliott count for the short term price behaviors from 80.20 areas might have been activated as well. Consequently, we may witness bullish direction during this week, but nit before relieving Stochastic indicator. A breakout above 77.20 zones will ease the path towards 78.45-78.80 zones; whilst penetrating 75.80 areas will damage our positive scenario.
The trading range for this week is among key support at 75.25 and key resistance now at 79.55.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.60 | 76.10 | 75.80 | 75.60 | 75.25 |
| Resistance | 77.20 | 77.60 | 77.90 | 78.45 | 79.10 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.70 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 03/10 – 07/ 10/ 2011
The pair is currently trading above 0.9105, but also below 0.9185. The recent upside movement doesn’t negate the suggested bearish harmonic structure, yet it weakens the structure, where stability below 0.8980 and then a breach of 0.8920 is required to confirm the downside movement; however, trading above 0.9185 could trigger a test of levels around 0.9420 before any bearish movement. Therefore, we remain neutral for now, awaiting a breach of 0.9185 to confirm the upside movement, or a breach of 0.8920 to confirm the downside movement, especially with the technical conflict seen on momentum indicators.
The trading range for this week is among the major support at 0.8835 and the major resistance at 0.9420.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400
| Support | 0.9080 | 0.9035 | 0.8980 | 0.8920 | 0.8880 |
| Resistance | 0.9150 | 0.9185 | 0.9230 | 0.9335 | 0.9400 |
| Recommendation | Based on the chart and explanations above, we recommend buying the pair with 4-hour closing above 0.9185, and take profit in stages at (0.9230 and 0.9400) and stop loss with daily-closing below 0.8920, Or selling the pair with 4-hour closing below 0.8920 and take profit in stages at (0.8835 and 0.8620) and stop loss with daily closing above 0.9105 might be appropriate today | ||||
Canadian Dollar (CAD)
Weekly Report 03/10 – 07/ 10/ 2011
The pair is currently trading around 1.0510, which represents 76.4% Fibonacci correction. As shown on the hourly interval, we can recognize an ascending channel settled above the exponential moving averages 20 and 50, where consolidation above these levels could trigger more upside movement. In fact, testing the levels of 1.0550 and maybe 1.0690 are highly possible, while we don’t exclude a test of further levels; however, heavy fluctuations and maybe downside correction are also possible, affected by Stochastic being within overbought areas.
The trading range for this week is among the major support at 1.0230 and the major resistance at 1.0850.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0500 | 1.0465 | 1.0400 | 1.0375 | 1.0320 |
| Resistance | 1.0550 | 1.0620 | 1.0690 | 1.0765 | 1.0855 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0450, and take profit in stages at (1.0550 and 1.0690) and stop loss with below 1.0320 might be appropriate | ||||
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