Weekly Report 16/01 – 20/01/ 2012
The pair declined sharply to settle now in areas below 261.8% Fibonacci as shown above at 1.2665, where this stability suggests more bearishness towards 1.2535 at least. But at the same time, Stochastic reflects clear oversold case, while RSI approaches oversold areas. Therefore, we remain neutral in our weekly report and recommend reviewing our next reports, awaiting further confirmation regarding the pair's next move.
The trading range for this week is among the major support at 1.2455 and the major resistance at 1.3000.
The short-term trend is to the upside with steady daily closing above 1.2220 targeting 1.3145
**New York Candlesticks**
| Support | 1.2620 | 1.2570 | 1.2535 | 1.2500 | 1.2455 |
| Resistance | 1.2665 | 1.2685 | 1.2740 | 1.2795 | 1.2845 |
| Recommendation | Based on the chart and explanations above, we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Weekly Report 16/01 – 20/01/ 2012
After placing a new short term low at 1.5230 on Friday, the pair started to consolidate where we can see the previous week's closing was achieved comfortably below X2 point of our duplicated harmonic formation over weekly basis. This duplicated harmonic structure suggests:
- A harmonic Butterfly pattern starting from X2 point.
- A harmonic Bat pattern starting from X1 point.
The bearishness is still favored since the CD leg of our caught pattern is still in progress supported by the negativity on Stochastic.
The trading range for this week is among key support at 1.4975 and key resistance at 1.5680.
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 | 1.5230 | 1.5180 | 1.5075 | 1.5000 | 1.4975 |
| Resistance | 1.5360 | 1.5420 | 1.5515 | 1.5555 | 1.5630 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5360 targeting 1.5075 and stop loss above 1.5555 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 16/01 – 20/01/ 2012
The pair continued consolidating between 61.8% and 76.4% Fibonacci levels of the entire upside wave from 75.50 to 79.50 zones as seen on the provided daily chart. Momentum and trend indicators are presently reflecting a technical case of hesitation; noting that areas of 77.10 act as ceiling; whilst 76.50 should be the protection for bulls. To recap, we hold onto our neutral stance until the pair breaches through one of the above mentioned levels over upcoming sessions.
The trading range for this week is among key support at 75.50 and key resistance now at 78.30.
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 | 76.40 | 76.10 | 76.00 | 75.80 |
| Resistance | 77.10 | 77.55 | 77.90 | 78.30 | 78.45 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside as risk versus reward ratio is too high today. | ||||
Swiss Franc (CHF)
Weekly Report 16/01 – 20/01/ 2012
Despite the negative pressures seen the pair last week, the level of 0.9400 was able to stop the negative momentum, where this level represents 50% Fibonacci correction of the CD leg of the Deep Crab harmonic pattern. Consolidation above this level suggests that the pair could extend the upside move towards 61.8% Fibonacci correction at 0.9950. The RSI approaches overbought areas, but we don’t recognize any negative crossover signs. In addition, ADX and MACD are positively biased.
The trading range for this week is among the major support at 0.9235 and the major resistance at 0.9855.
The short-term trend is to the upside with steady weekly closing above 0.8850 targeting 0.9950.
**New York Candlesticks**
| Support | 0.9520 | 0.9480 | 0.9400 | 0.9375 | 0.9330 |
| Resistance | 0.9590 | 0.9660 | 0.9740 | 0.9785 | 0.9855 |
| Recommendation | Based on the chart and explanations above, our opinion is buying the pair above 0.9520, and taking profit in stages at (0.9660 and 0.9785) and stop loss with a daily closing below 0.9400 might be appropriate | ||||
Canadian Dollar (CAD)
Weekly Report 16/01 – 20/01/ 2012
The bearishness stopped again and the pair returned to trade around the exponential moving averages 20 and 50 as shown above on the daily chart, and also around the previously breached ascending main support. Currently, we cannot confirm the return of the upside move in spite of the positivity seen on Stochastic and the bullish rebound seen from areas around 1.0185; however, we also cannot confirm the return of the downside movement as RSI attempts to breach the 50-point level and the pair isn’t able to confirm the stability above the exponential moving averages at 1.0205. Therefore, we remain neutral in our weekly report.
The trading range for this week is among the major support at 1.0000 and the major resistance at 1.0620.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0205 | 1.0185 | 1.0140 | 1.0110 | 1.0055 |
| Resistance | 1.0255 | 1.0275 | 1.0305 | 1.0375 | 1.0400 |
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
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