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Technical Cross
Written by article default Monday, 09 May 2011 09:46
Weekly Report 09/05 – 13/ 05/ 2011
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Friday's closing was also below 76.4% Fibonacci retracement of the CD leg of our previous captured bearish harmonic butterfly pattern. According to the harmonic rules, the path becomes clear to revisit 100% Fibonacci level at 130.10 and a break of which will send the pair violently towards 127.2% Fibonacci projection of the same levels as seen on the provided daily graph since we are talking about the extended targets, noting that Stochastic might cause some kind of fluctuation but trading stabilized below the lower line ok Keltner channel. To conclude, possible bearishness might be witnessed during this week as far as 135.00 levels remain unbroken.
The trading range for this week is among key support at 127.60 and key resistance at 136.80.
The general trend over short term basis is to the downside targeting 118.80 as far as areas of 150.75 areas remain intact.
| Support | 131.50 | 130.10 | 129.40 | 128.70 | 127.60 |
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| Resistance | 132.50 | 133.65 | 134.20 | 135.00 | 136.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 128.70 and stop loss above 135.00 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 09/05 – 13/ 05/ 2011
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After reaching Friday's suggested technical objective at 115.25 -check the previous report- the pair started a slight correction for the panic sell-off during the previous week. The aforesaid descending movements made a confirmed negative closing over daily and weekly basis below 38.2% Fibonacci of XA rally of the above seen Bat pattern. This harmonic formation is still drawing its last leg or rather its CD leg but we believe that the pair will fluctuate to relax momentum indicator first before moving lower once more during this week; whilst the potential support resides at 61.8% of XA leg at 112.90-112.80 zones. The technical target of this pattern resides at 110.45 areas but let us take it level by level.
The trading range for this week is among key support at 110.45 and key resistance now at 120.50.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 115.50 | 114.75 | 114.25 | 113.60 | 112.80 |
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| Resistance | 116.80 | 117.30 | 118.65 | 119.10 | 119.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 116.50 targeting 113.00 and stop loss above 118.65 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 09/05 – 13/ 05/ 2011
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It seems that the ideal PRZ of the suggested Grtley pattern -blue pattern- at 0.9105 was replaced by 0.9040 zones since the royal pair slipped sharply from these pivotal resistance levels. Actually, Fibonacci level of 38.2% of CD leg -the first typical technical objective- was touched on Friday at 0.8750 and now, the bearish candlestick formation and the negativity of Stochastic may send the pair lower towards 61.8% of CD leg around 0.8590 zones. Thereby, we see chances for potential downside actions during this week, noting that this bearishness matches forming the bigger BC leg of the bigger pattern –green one-.
The trading range for this week is among the key support at 0.8605 and key resistance now at 0.9040.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8730 | 0.8700 | 0.8650 | 0.8605 | 0.8580 |
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| Resistance | 0.8820 | 0.8870 | 0.8915 | 0.8965 | 0.9000 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8810 targeting 0.8605 and stop loss above 0.8960 might be appropriate. | ||||