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Technical Cross
Written by article default Monday, 06 June 2011 07:29
Weekly Report 06/06 – 10/ 06/ 2011
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The pair retraced mildly after touching the support of 88.6% Fibonacci of the CD leg of our efficient bearish harmonic butterfly pattern as seen on the provided daily graph and we recommend reviewing the previous report to see how we expected this slight recovery. Now, we see Stochastic overlapping positively below the broken correctional trend line and that might cause a retest of this trend line from below before resuming the downside trip initially targeting 100% of CD leg at 130.00 zones followed by 127.35 areas since Fibonacci levels are falling one after another. The weekly candlestick pattern is another bearish sign which encourages us to suggest potential downside move during this week.
The trading range for this week is among key support at 126.70 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 | 131.05 | 130.00 | 129.40 | 128.40 | 127.60 |
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| Resistance | 132.50 | 133.15 | 134.20 | 135.00 | 136.25 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 128.40 and stop loss above 135.00 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 06/06 – 10/ 06/ 2011
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We can't judge that the previous discussed Bat pattern has been damaged until now as the pair couldn't achieve a confirmed positive closing above SMA 50. In the interim, Friday's closing was above 38.2% Fibonacci retracement of XA leg as seen on the provided daily chart. Stochastic is approaching overbought areas; whilst Vortex is positive. Those conflicting signs can't give off a convenient sign for the time being and therefore, we should stay aside until we witness a decisive signal to predicate the upcoming move.
The trading range for this week is among key support at 113.60 and key resistance now at 122.10.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 116.90 | 116.30 | 115.25 | 114.90 | 114.25 |
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| Resistance | 117.80 | 118.65 | 119.10 | 120.00 | 121.15 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 06/06 – 10/ 06/ 2011
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The past week's candlestick succeeded in engulfing three previous weeks as seen on the secondary image. Hence, we see that the bearishness of our Gartley pattern has been limited a few pips above 61.8% of it CD leg -check the previous report- and now, we will look at the pair classically to see a symmetrical triangle pattern which is confirmed by a retesting action for its broken resistance line -upper line-. Additionally, SMA 50 started to carry the bullishness from below, while AROON is bullish. Consequently, we see chances for more bullishness over short and medium term basis; particularly if 0.8965-0.9000 areas are breached. For the meantime, the positivity is also in favor during this week.
The trading range for this week is among the key support at 0.8700 and key resistance now at 0.9140.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8885 | 0.8820 | 0.8770 | 0.8730 | 0.8715 |
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| Resistance | 0.8965 | 0.9000 | 0.9070 | 0.9100 | 0.9140 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8880 targeting 0.9140 and stop loss below 0.8715 might be appropriate. | ||||
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