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Technical Cross
Written by article default Monday, 27 June 2011 09:27
Weekly Report 27/06 – 01/ 07/ 2011
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The decisive closing below 100% Fibonacci retracement or rather the full correctional level of CD leg for our efficient bearish harmonic butterfly pattern is considered to be another negative indication for resuming the southern journey of touching the extended technical objectives of the pattern. Actually, closing below the lower line of Keltner channel could be a sign that the pair is oversold and that is clear on Stochastic too; thus, we believe that the pair may fluctuate before moving downwards once more during this week. Carefully note that breaching through 127.2% projection of CD leg at 127.35 will trigger a panic sell-off towards 161.8% level and that is highly anticipated due to the negativity on Vortex indicator which reflects the strength of the bearish trend.
The trading range for this week is among key support at 123.90 and key resistance at 133.80.
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 | 127.35 | 126.70 | 125.50 | 124.60 | 123.90 |
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| Resistance | 129.40 | 130.00 | 131.05 | 132.00 | 133.15 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 129.10 targeting 124.60 and stop loss above 132.00 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report 27/06 – 01/ 07/ 2011
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The consecutive negative closing below 50% Fibonacci level of XA leg for our proposed Bat pattern could assist the pair to breach the initial support of 113.50 on the way towards the next Fibonacci levels. The bearishness on Stochastic and Vortex indicators are signs for resuming the downside trip to draw the CD leg of the aforesaid harmonic structure. Henceforth, we still see chances for additional bearishness during this week; whilst the acceleration will be seen after breaching through the aforementioned support. Technical targets of the PRZ -potential reversal zones- reside at 108.50 zones, while 110.50 will be a solid technical obstacle. Only a breakout above 116.90 zones could negate the highly anticipated bearish scenario.
The trading range for this week is among key support at 110.00 and key resistance now at 117.35.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 113.50 | 112.80 | 112.10 | 111.60 | 110.50 |
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| Resistance | 114.50 | 115.25 | 115.75 | 116.30 | 116.90 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 114.50 targeting 110.50 and stop loss above 116.90 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report 27/06 – 01/ 07/ 2011
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The bigger time frame of the weekly basis shows how the pair has been capable of drawing a huge symmetrical triangle pattern confirmed by breaching its resistance line as seen on the provided graph. Furthermore, SMA 50 is protecting the recently established bullish trend from below. Thereby, we believe that the bullishness will dominate the movements over upcoming period as far as the pivotal support areas between 0.8690 and 0.8630 remain intact.
The trading range for this week is among the key support at 0.8630 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 | 0.8845 | 0.8820 | 0.8760 | 0.8730 | 0.8690 |
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| Resistance | 0.8895 | 0.8925 | 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 0.8845 targeting 0.9030 and stop loss below 0.8690 might be appropriate. | ||||