Weekly Report 12/03 – 16/03/ 2012
Friday's bearish engulfing candlestick pattern has confirmed our short term outlook and eyes now is on the psychological levels of 1.3000. This collapse seen obviously on the daily graph may weaken 1.3000 zones supported by the negativity appearing on Stochastic and if the pair succeeds in taking 1.3000, the path will be cleared towards the monthly support level of 1.2850. We recommend reviewing the previous report for more details about the previous anticipated bearish scenario.
The trading range for this week is among key support at 1.2740 and key resistance at 1.3415.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 remain intact.
| Support | 1.3005 | 1.2940 | 1.2860 | 1.2795 | 1.2740 |
| Resistance | 1.3135 | 1.3200 | 1.3250 | 1.3315 | 1.3375 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.3130 targeting 1.2850 and stop loss above 1.3320 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 12/03 – 16/03/ 2012
The Fibonacci rhythmic dominating the movements of Cable since July, 2011 suggests a potential bearish harmonic "5-0" pattern as seen on the provided daily chart. Friday's collapse is another indication that the key support of 1.5640 will be taken soon or later. Assessing indicators, Vortex-trend indicator- is definitely negative; whilst RSI 14 is on the way to the downside within the bearish momentum channel. Of note, the aforesaid harmonic structure always reaches extended targets beyond C levels but we will eye on the soft technical objective around 1.5420 zones for the time being.
The trading range for this week is among key support at 1.5360 and key resistance at 1.5975.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.
| Support | 1.5585 | 1.5515 | 1.5460 | 1.5420 | 1.5360 |
| Resistance | 1.5680 | 1.5730 | 1.5780 | 1.5880 | 1.5935 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5680 targeting 1.5430 and stop loss above 1.5890 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 12/03 – 16/03/ 2012
The pair has soared reaching our short term detected technical targets around 82.50 zones as seen on the provided daily chart. The daily studies propose a mild downside recovery to relieve momentum indicators before resuming the bullishness after clearing all technical obstacles during the previous period. The subsidiary image of the weekly basis shows that the path is clear towards the high recorded on April, 2011 at 85.50 supported by the bullish momentum appearing on the weekly candlesticks.
The trading range for this week is among key support at 80.50 and key resistance now at 85.50.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 82.20 | 81.80 | 81.25 | 80.75 | 80.50 |
| Resistance | 82.70 | 83.20 | 83.65 | 84.00 | 85.00 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 81.75 targeting 84.00 and stop loss below 80.20 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 12/03 – 16/03/ 2012
Respecting our bullish scenario suggested on Friday, the pair has soared from 50% Fibonacci retracement of the entire upside rally from 0.8565 to the significant high of 0.9590 forming a bullish engulfing candlestick pattern. We do have lots of positive catalysts over daily studies that argue us to keep our bullish scenario intact during this week as follows:
- Friday's positive closing above SMA 100.
- The positive closing above Ribbon studies- EMA 10 to 80- as seen on the secondary daily chart.
- Parabolic SAR is positive carrying the bullishness as well.
- Stochastic and RVI 14 are also positive reinforcing the upside trend.
The trading range for this week is among key support at 0.9000 and key resistance at 0.9590.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.
| Support | 0.9175 | 0.9140 | 0.9105 | 0.9080 | 0.9030 |
| Resistance | 0.9260 | 0.9310 | 0.9365 | 0.9400 | 0.9445 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9185 targeting 0.9400 and stop loss below 0.9010 might be appropriate. | ||||
Canadian Dollar (CAD)
Weekly Report 12/03 – 16/03/ 2012
The pair rebounds once more from 0.9890 support, while trading continues to be confined within the bullish reversal falling wedge pattern shown on chart. Momentum indicators are clearly illustrating the range-trading stance. Therefore, we anticipate an upside rebound this week, targeting mainly the main horizontal resistance at 1.0080.
The trading range for the week is expected among the key support at 0.9850 and the key resistance at 1.0080.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
| Support | 0.9890 | 0.9870 | 0.9850 | 0.9800 | 0.9770 |
| Resistance | 0.9940 | 0.9990 | 1.0020 | 1.0050 | 1.0080 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9890 targeting 1.0000 and 1.0080. Stop loss below 0.9835. | ||||
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