Weekly Report 30/04 – 04/05/ 2012
The pair has moved higher in the US session on Friday after touching our first detected technical objective at 1.3170 as seen on the provided daily chart. A deeper look at the graph shows that last week’s price actions have been trapped between 38.2% and 23.6% Fibonacci levels of the entire upside wave from 1.2625 to 1.3485 while trend and momentum indicators continue to reflect the technical hesitation as the pair has taken SMA 50 but Stochastic(8-3-3) remains negative. In result, we prefer to stay aside until an actionable set up presents itself to pinpoint the next move.
The trading range for this week is among key support at 1.3005 and key resistance at 1.3485.
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 | 1.3140 | 1.3110 | 1.3070 | 1.3025 |
| Resistance | 1.3280 | 1.3315 | 1.3360 | 1.3415 | 1.3485 |
| 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. | ||||
Great British Pound (GBP)
Weekly Report 30/04 – 04/05/ 2012
The pair continued to move upwards after taking the initial resistance level of 1.6165 -turned into support- and now, the path is clear towards the next technical objective for bulls over short term basis at 76.4% Fibonacci of the entire downside wave from 1.6745 to 1.5230. Stochastic continued moving within overbought territories suggesting potential setbacks before resuming the upside rally.
Notes:
- In such trending market, we shouldn’t depend on momentum indicators alone as it may continue moving within overbought areas longer than we expect.
- Coming back below 1.6165 along with consecutive daily closings will prevent cable from reaching the aforementioned correctional level.
The trading range for this week is among key support at 1.6500 and key resistance at 1.6000.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.
| Support | 1.6230 | 1.6200 | 1.6165 | 1.6125 | 1.6075 |
| Resistance | 1.6300 | 1.6350 | 1.6390 | 1.6425 | 1.6500 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 1.6230 targeting 1.6390 and stop loss below 1.6120 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 30/04 – 04/05/ 2012
The pair plummeted from the initial resistance areas of 81.50 as seen on the provided daily chart. The bearish channel that started around 2012 highs around 84.15 continues to dominate the movements, but the pair is very close to the sensitive areas between the psychological level of 80.00 and 79.55. Meanwhile, we can see RSI 14 approaching oversold areas while SMA 100 could meet the pair sooner within the aforementioned sensitive zones. Thus, we will avoid trading until the pair offers convenient technical setup over upcoming sessions to define the upcoming big move.
The trading range for this week is among key support at 78.30 and key resistance now at 82.00.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 80.00 | 79.80 | 79.55 | 79.25 | 78.80 |
| Resistance | 80.50 | 81.00 | 81.20 | 81.50 | 81.80 |
| 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 30/04 – 04/05/ 2012
The pair has moved mildly downwards after finding a solid resistance inside Ribbons lines areas as seen on the provided graph. It is currently facing a very sensitive level where the support line of a potential classical pattern discussed earlier exists. At the same time, Stochastic is crossing over bullishly within oversold territories suggesting a reversal. Stability below Ribbons lines -EMA 10 to 80- contradicts the positivity of Stochastic and therefore, we will stay aside until the pair offers clearer signs.
The trading range for this week is among key support at 0.8890 and key resistance at 0.9260.
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 | 0.9000 | 0.8965 | 0.8925 | 0.8900 |
| Resistance | 0.9105 | 0.9145 | 0.9175 | 0.9200 | 0.9260 |
| 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 30/04 – 04/05/ 2012
loonie broke and settled below the consolidation range-bound shown on the image; and that hints the bearish continuation scenario is more likely within the upcoming weeks, thus we anticipate downside pressure to dominate the pair’s movements this week, while 0.9950 should remain intact for this scenario to remain valid.
The trading range for this week is expected among the key support at 0.9650 and resistance at 0.9950.
The short term trend is to the downside targeting 0.9400 with steady daily closing below 1.0070.
| Support | 0.9800 | 0.9770 | 0.9750 | 0.9720 | 0.9700 |
| Resistance | 0.9840 | 0.9865 | 0.9900 | 0.9930 | 0.9980 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair below 0.9865 targeting 0.9800 and 0.9750. Stop loss above 0.9950 | ||||
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