Weekly Report 31/10 – 04/ 11/ 2011
The pair declined after reaching around 78.6% Fibonacci correction at 1.4250, to settle now around 61.8% Fibonacci correction at 1.4015 as shown above on the chart. From a classic point of view, the ascending channel is still solid, while the channel’s support level is at 1.3905 and the upside move depends on stability above 1.3880-45, where these levels represent the neckline of the inverted head and shoulders pattern. In general, the positivity is still valid, but we do not rule out the possibility for the pair to reach areas around 1.3905 before rebounding to the upside again.
The trading range for this week is among key support at 1.3680 and key resistance at 1.4550.
The general trend over short term basis is to the upside targeting 1.5135 as far as areas of 1.2795 areas remain intact.
| Support | 1.3970 | 1.3940 | 1.3910 | 1.3880 | 1.3840 |
| Resistance | 1.4075 | 1.4120 | 1.4205 | 1.4250 | 1.4300 |
| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 1.3905, and take profit in stages at (1.4250 and 1.4390) and stop loss below 1.3800 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 31/10 – 04/ 11/ 2011
The pair has collapsed during the Asian session today as seen on the secondary image of the four-hour time scale. This decline suggests that 61.8% Fibonacci retracement of CD leg for the bullish harmonic AB=CD pattern -the second technical target of the pattern- could be solid enough to prevent the pair from reaching the extended technical targets starting at 76.4% Fibonacci level. At the same time, RSI 14 which is frequently obeyed by Cable started to show signs of weakness. Thereby, we believe that the pair is on its way to move lower during this week and a break of 1.5935 will accelerate decline.
The trading range for this week is among key support at 1.5330 and key resistance at 1.6440.
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 | 1.5935 | 1.5820 | 1.5780 | 1.5620 | 1.5555 |
| Resistance | 1.6075 | 1.6150 | 1.6225 | 1.6295 | 1.6380 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6025 targeting 1.6230 and stop loss above 1.5720 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 31/10 – 04/ 11/ 2011
The pair has soared during the Asian session as seen on the provided daily graph. This aggressive inclines has activated a clear bullish sign on Stochastic and Vortex indicators, claiming that 100% Fibonacci expansion level was very solid enough to push the pair higher without neglecting the role that BOJ played. Focus is on 81.50 zones where a break of which will bring panic buying interests towards 85.50 areas. Let us follow this reversal; noting that 79.55 zones should be breached to confirm the bullishness. Conversely, areas of 76.95 should be the risk limit during this week.
The trading range for this week is among key support at 76.50 and key resistance now at 83.25.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 78.80 | 77.90 | 77.20 | 76.95 | 75.80 |
| Resistance | 79.90 | 80.55 | 81.15 | 81.75 | 82.30 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 78.80 targeting 81.50 and stop loss below 76.90 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 31/10 – 04/ 11/ 2011
The pair is stable below the exponential moving average 50 at 0.8875, but also above 38.2% Fibonacci correction of the CD leg of the bearish Butterfly harmonic pattern. Stochastic is positive, but the Relative Strength Index is still negative. All these factors together drive us to remain neutral, awaiting a breach of the mentioned correction at 0.8995 or the level of 0.8770.
The trading range for this week is among key support at 0.8310 and key resistance at 0.9030.
The general trend over short term basis is to the upside targeting 0.9400 as far as areas of 0.8020 areas remain intact.
| Support | 0.8695 | 0.8675 | 0.8605 | 0.8580 | 0.8550 |
| Resistance | 0.8775 | 0.8850 | 0.8930 | 0.9030 | 0.9080 |
| Recommendation | Based on the chart and explanations above, we remain neutral awaiting further confirmations. | ||||
Canadian Dollar (CAD)
Weekly Report 31/10 – 04/ 11/ 2011
61.8% Fibonacci correction at 0.9885 was able to stop the pair’s negative momentum, while the pair is currently biased to the upside, but still below 50% Fibonacci correction at 1.0030. Consolidation below the mentioned correction could trigger a negative bias, especially when the pair is trading below the previously breached ascending main support, which turned into resistance at 1.0115. Therefore, we expect the pair to provide another bearish attempt, but in case the pair failed to breach 0.9885, it could significantly rebound to the upside.
The trading range for this week is among key support at 0.9700 and key resistance at 1.0365.
The general trend over short term basis is to the downside targeting 0.9000 as far as areas of 1.0665 areas remain intact.
| Support | 0.9960 | 0.9905 | 0.9885 | 0.9825 | 0.9780 |
| Resistance | 1.0030 | 1.0055 | 1.0110 | 1.0185 | 1.0205 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 1.0030 and take profit in stages at (0.9905 and 0.9885) and stop loss above 1.0140 might be appropriate. | ||||
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