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Technical Cross
Written by article default Monday, 23 May 2011 07:51
Weekly Report 23/5 – 27/ 05/ 2011
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Our previous harmonic scenario for achieving the extended technical objectives of the bearish harmonic pattern is still valid. When we look deeper at the price behaviors during the previous week, we will find that the pair didn't show any big move but it succeeded in taking Stochastic towards overbought areas. We can see signs of a bearish harmonic formation on the indicator. Thereby, the bearishness will be in favor during this week and all what we need is a sustained breakout below 132.25 to confirm this suggested negative scenario.
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 | 131.60 | 130.50 | 129.40 | 128.40 | 127.60 |
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| Resistance | 133.15 | 133.60 | 134.20 | 135.50 | 136.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 132.25 targeting 128.40 and stop loss above 135.80 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 23/5 – 27/ 05/ 2011
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Inline with our previous proposed bearishness -check the previous report for more details- the pair slipped aggressively during Friday's trading forming an obvious bearish engulfing candlestick formation as seen on the secondary image. The negativity is clear on Stochastic and thus, our scenario of resuming the CD leg of the harmonic Bat pattern is still in progress and focusing now on 50% Fibonacci retracement of XA leg as a break of which will trigger a panic sell-off towards 61.8% and 76.4% later. Vortex indicator -trend indicator- reflects strong negative case solidifying our constructive overview.
The trading range for this week is among key support at 110.50 and key resistance now at 118.65.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 114.75 | 114.25 | 113.60 | 112.80 | 112.40 |
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| Resistance | 115.75 | 116.30 | 116.80 | 117.40 | 118.65 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.75 targeting 112.40 and stop loss above 117.60 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 23/5 – 27/ 05/ 2011
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The subsidiary image shows how the pair declined sharply respecting our previous suggested bearish scenario since the negative effect of our captured bearish harmonic Gartley pattern is still in progress. The pair is presently preparing to retest 50% retracement of CD leg at 0.8655 after stabilizing below 38.2% with a weekly closing. SMA 50 acts as a ceiling for the time being and the bearish candlestick formation argues us to say that 50% Fibonacci becomes weaker and 61.8% around 0.8570-0.8580 zones will be visited sooner or later. Anyway, the bearishness is suggested for this week.
The trading range for this week is among the key support at 0.8465 and key resistance now at 0.8885.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8655 | 0.8630 | 0.8605 | 0.8580 | 0.8565 |
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| Resistance | 0.8700 | 0.8730 | 0.8780 | 0.8820 | 0.8850 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8720 targeting 0.8570 and stop loss above 0.8825 might be appropriate. | ||||