Weekly Report 26/03 – 30/03/ 2012
The pair continued consolidating around the key resistance level of 1.3250 after achieving a positive closing above 38.2% Fibonacci level of the entire downside rally from 1.4245 to 1.2625. But, the stability below the key resistance level of 1.3320 and the reversal candlestick pattern- shooting star- formed over four-hour interval argue us to suggest potential downside move during this week. A break below 1.3200 is required to confirm our constructive bearish outlook while a break above 1.3375 will negate and give us a reason for concern.
The trading range for this week is among key support at 1.2930 and key resistance at 1.3550.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 remain intact.
| Support | 1.3200 | 1.3110 | 1.3070 | 1.3005 | 1.2930 |
| Resistance | 1.3320 | 1.3365 | 1.3415 | 1.3455 | 1.3500 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.3200 targeting 1.2975 and stop loss above 1.3380 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 26/03 – 30/03/ 2012
One more long upper shadow was formed with the closing of the previous week and it forced the pair to close negatively below the key resistance levels between 1.5890 and 1.5925 as seen on the provided daily chart. Meanwhile, the negativity on Stochastic remains unchanged; thus, we still see chances for achieving potential downside actions during this week. Breaching through 1.5780 should be witnessed to confirm the scenario while taking the psychological level of 1.6000 will give us a rational technical reason for pause.
The trading range for this week is among key support at 1.5515 and key resistance at 1.6165.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.
| Support | 1.5780 | 1.5730 | 1.5680 | 1.5630 | 1.5585 |
| Resistance | 1.5890 | 1.5925 | 1.6000 | 1.6075 | 1.6165 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5820 targeting 1.5560 and stop loss above 1.5995 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 26/03 – 30/03/ 2012
In line with our Friday's scenario, the pair has declined sharply approaching the detected technical objective of 81.50 as seen on the provided daily chart. Now, it is clear that the bearish momentum started to lose its motive after rebounding quickly from 81.90 zones but Stochastic remains negative. In the interim, Vortex started to be positive again; thus, we believe that staying aside is a good technical choice until this contrarian between signs disappears. Of note, taking 84.15 will ease the path towards the high recorded in April, 2011 at 85.50.
The trading range for this week is among key support at 80.00 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 | 80.00 |
| Resistance | 83.00 | 83.50 | 84.15 | 85.00 | 85.50 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Swiss Franc (CHF)
Weekly Report 26/03 – 30/03/ 2012
The pair has moved to the downside once more during Friday's trading but couldn’t breach the confluence of resistances around 0.9075 where 50% Fibonacci of the above seen wave and the lower line of Keltner channel exist. The conflict between Stochastic and RVI 14 reflect the technical hesitation case but we believe that a break above 0.9145 will bring the bullish picture back into focus while clearing 0.9030 areas will send the pair lower towards 0.8960 again. To conclude, we will stay aside due to the sensitivity of the current technical levels.
The trading range for this week is among key support at 0.8850 and key resistance at 0.9360.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.
| Support | 0.9030 | 0.8985 | 0.8965 | 0.8925 | 0.8850 |
| Resistance | 0.9145 | 0.9175 | 0.9200 | 0.9230 | 0.9310 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Canadian Dollar (CAD)
Weekly Report 26/03 – 30/03/ 2012
The pair starts the week above the resistance of the falling wedge formation and fluctuating around the 50-days Simple moving average. This break out of the wedge pattern suggests that we may see further bullishness this week , while momentum indicators are supporting the positivity seen on price; meanwhile the horizontal resistance at 1.0050 is the main barrier to the upside.
The trading range for the week is expected among the key support at 0.9850 resistance at 1.0150.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
| Support | 0.9900 | 0.9950 | 0.9870 | 0.9850 | 0.9800 |
| Resistance | 0.9990 | 1.0020 | 1.0050 | 1.0080 | 1.0120 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9940 targeting 1.0050 and 1.0150. Stop loss below 0.9850. | ||||
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