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Technical Cross
Written by article default Monday, 16 May 2011 09:07
Weekly Report 16/05 – 20/ 05/ 2011
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The pair succeeded in touching the full correctional level of Fibonacci for the CD leg of our previous caught bearish harmonic butterfly pattern as seen on the provided daily graph. This bearish harmonic structure has proved its efficiency during the previous period and we will continue depending on it during this week to suggest further bearish movements as it is still moving towards the extended technical objectives. The next level that could be touched resides at 127.2% Fibonacci projection of CD leg at 127.50 zones.
The trading range for this week is among key support at 124.00 and key resistance at 136.20
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 | 130.50 | 129.25 | 128.40 | 127.60 | 126.70 |
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| Resistance | 131.60 | 132.50 | 133.65 | 134.80 | 135.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 131.50 targeting 127.50 and stop loss above 134.20 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 16/05 – 20/ 05/ 2011
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Inline with the previous week's reports, the pair continued declining where it stabilized below 50% Fibonacci retracement of XA leg of our harmonic Bat pattern which is still forming its CD leg. Now, we are approaching the most sensitive level of retracement at 61.8% of XA leg and a break of which will accelerate the proposed bearishness during this week. This scenario is supported by the negative closing of the weekly candlestick below SMA 50 as seen on the subsidiary image. Vortex reflects the strength of the current bearish trend, while Stochastic is expected to cause some kind of fluctuation.
The trading range for this week is among key support at 108.40 and key resistance now at 117.75.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 113.60 | 112.80 | 111.90 | 111.65 | 110.50 |
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| Resistance | 114.75 | 115.25 | 115.75 | 116.20 | 116.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 114.65 targeting 111.05 and stop loss above 116.55 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 16/05 – 20/ 05/ 2011
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The royal pair collapsed on Friday forming an obvious bearish candlestick formation as seen on the provided weekly graph. This decline reflects the strength of the PRZ of our previous explained Gartley pattern -colored in blue- which pushed the pair below 38.2% Fibonacci of its CD leg at 0.8750 zones. The path is still clear towards the second technical objective of our bearish harmonic pattern at 61.8% Fibonacci of CD leg around 0.8580-0.8570. The negativity of Stochastic is still seen on the weekly and also daily basis.
The trading range for this week is among the key support at 0.8510 and key resistance now at 0.8915.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8680 | 0.8630 | 0.8605 | 0.8550 | 0.8510 |
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| Resistance | 0.8730 | 0.8770 | 0.8820 | 0.8850 | 0.8875 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8740 targeting 0.8580 and stop loss above 0.8855 might be appropriate. | ||||