Weekly Report 12/12 – 16/ 12/ 2011
The pair attempted to settle above 1.3380 and 1.3435, yet it failed, which triggered an intraday descending channel shown above in red, noting that the channel’s resistance stands at 1.3420. The pair is currently stable below 78.6% Fibonacci correction, which could force more downside pressures on the pair to retest areas around 1.3270 and maybe covering the opening gap set earlier at 1.3232. But at the same time, the pair formed a falling wedge pattern –bullish technical pattern- which drives us to remain neutral in our weekly report, awaiting further confirmations regarding the pair’s next move.
The trading range for this week is among the major support at 1.3000 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 | 1.3305 | 1.3270 | 1.3220 | 1.3160 | 1.3110 |
| Resistance | 1.3380 | 1.3435 | 1.3490 | 1.3515 | 1.3565 |
| Recommendation | Based on the chart and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Weekly Report 12/12 – 16/ 12/ 2011
One more setback to the downside was achieved obviously with Friday's closing where the daily candlestick has drawn a new long upper shadow below SMA 50 as seen on the provided daily graph. In the interim, Stochastic succeeded in overlapping negatively to support our suggested bearish outlook as 38.2% Fibonacci of the bearish wave from 1.6615 to 1.5270 held its stance preventing the pair from extending the correction. A break below 1.5590 will weaken the support of 1.5420 and will threaten the significant low of 1.5270. Finally, we recommend reviewing the harmonic short-term outlook where we studied the clear bearish direction over weekly basis.
The trading range for this week is among key support at 1.5180 and key resistance at 1.5935.
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 | 1.5590 | 1.5510 | 1.5460 | 1.5375 | 1.5270 |
| Resistance | 1.5680 | 1.5780 | 1.5820 | 1.5870 | 1.5935 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5590 targeting 1.5270 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 12/12 – 16/ 12/ 2011
The consolidation continued above 61.8% and 50% Fibonacci levels of the upside rally from 75.50 to 79.50 as seen on the major four-hour graph. Additionally, SMA 100 succeeded in providing the pair with the support it needs during the Asian session; whilst Stochastic crossed over positively. The secondary image of the daily basis shows how trading has been trapped within a very tight range during the previous week, suggesting that a potential price explosion could be seen sooner. Stochastic of the daily studies solidifies the constructive bullish overview, while a break of 77.80-77.90 will accelerate the awaited inclines.
The trading range for this week is among key support at 75.50 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 | 77.30 | 77.15 | 76.95 | 76.55 | 76.10 |
| Resistance | 77.90 | 78.10 | 78.30 | 78.45 | 79.15 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.40 targeting 79.15 and stop loss below 76.65 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 12/12 – 16/ 12/ 2011
The pair attempted to settle below the Exponential Moving Average 50, but all the provided attempts failed, where the pair is currently trading above 0.9235 but also below the suggested D1 point of the bearish Butterfly harmonic pattern. A breach of 0.9180 and stability below it could bring our negative outlook back, supported by the overbought signs on Stochastic, but consolidation above 0.9305 could trigger an upside move towards point D2 at 0.9400. Therefore, we remain neutral in our weekly report and we recommend reviewing our next reports awaiting further confirmations.
The trading range for this week is among the major support at 0.8880 and the major resistance at 0.9560.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9235 | 0.9180 | 0.9110 | 0.9080 | 0.9045 |
| Resistance | 0.9290 | 0.9305 | 0.9335 | 0.9370 | 0.9415 |
| Recommendation | Based on the charts and explanations above we remain neutral, awaiting more confirmations | ||||
Canadian Dollar (CAD)
Weekly Report 12/12 – 16/ 12/ 2011
The pair was able to settle above 1.0185, but Stochastic attempts to provide a negative crossover, while the Relative Strength Index is stable below the 50-point level. The upside move is still available, but to negate the negativity seen on momentum indicators, the pair should settle above the Exponential Moving Average 20 and 50 and also above 50% Fibonacci correction at 1.0275. Therefore, we expect an upside move today but consolidation above the mentioned level is required to confirm our outlook.
The trading range for this week is among the major support at 0.9865 and the major resistance at 1.0570.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0185 | 1.0140 | 1.0110 | 1.0055 | 1.0000 |
| Resistance | 1.0250 | 1.0275 | 1.0305 | 1.0375 | 1.0400 |
| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0185, and take profit in stages at (1.0275 and 1.0375) and stop loss with 4-hour closing below 1.0070 might be appropriate | ||||
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