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Technical Cross
Written by article default Monday, 13 June 2011 07:08
Weekly Report 13/06 – 17/ 06/ 2011
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The pair is normally consolidating around 100% Fibonacci of the CD leg for the efficient bearish harmonic Butterfly pattern, but the aggressive declines in the previous week indicate that the journey of reaching the extended technical targets of the pattern will continue during this week. Breaching through the aforesaid full correctional level will ease the path towards 127.2% Fibonacci projection of CD leg at 127.40 areas, noting that Stochastic might cause some kind of fluctuation.
The trading range for this week is among key support at 125.50 and key resistance at 135.50.
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 | 130.00 | 129.40 | 128.40 | 127.60 | 126.70 |
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| Resistance | 131.05 | 132.00 | 133.15 | 134.20 | 134.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 131.05 targeting 127.40 and stop loss above 133.20 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 13/06 – 17/ 06/ 2011
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The pair succeeded in breaching the minor correctional uptrend line seen on the provided daily graph. This breakout has taken the pair towards 50% Fibonacci retracement of XA leg for the proposed Bat pattern. This 50% level might cause some kind of pause but we don't think it will prevent the pair from additional bearishness during this week since Vortex started to overlap negatively signaling strong downside trend. Additionally, SMA 50 is providing the pair with a solid resistance for the time being.
The trading range for this week is among key support at 112.10 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 | 112.10 |
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| Resistance | 115.90 | 116.30 | 117.30 | 118.65 | 119.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.80 targeting 112.90 and stop loss above 117.90 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 13/06 – 17/ 06/ 2011
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From 0.9040 levels to the current level, we can see how the royal pair is dominated by a fine Fibonacci symmetry that created confirmed 4 legs of a potential bullish harmonic "5-0" level. It seems that the pair is seeking for a completion; whilst its scientific technical PRZ -potential reversal zones- reside at 50% retracement of BC leg around 0.8790. SMA 50 is carrying the movements from below and thus, we expect upside actions over coming sessions. Carefully note that this pattern always brings extended Fibonacci targets above the length of CD leg.
The trading range for this week is among the key support at 0.8605 and key resistance now at 0.9070.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8820 | 0.8790 | 0.8760 | 0.8730 | 0.8715 |
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| Resistance | 0.8875 | 0.8915 | 0.8965 | 0.9000 | 0.9030 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8790 targeting 0.9000 and stop loss below 0.8675 might be appropriate. | ||||