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Technical Cross
Written by article default Monday, 18 July 2011 09:03
Weekly Report (18-22/July/2011)
Over the daily charts, we see the pair moving among a short term descending channel, and the latest test of the resistance level of the channel hints that the downside movement may continue toward the support of the channel near 123.00. The 50 EMA and the breach of the pivotal support levels at 130.55 and 128.15 are negative factors that support our expectations for a downside move during the week, while breaching 128.15 may delay achieving the awaited targets.
Trading range for the week is among the major support at 121.00 and the major resistance at 130.55
The short term trend is to the downside targeting 112.00 as long as 150.00 remain intact.
| Support | 126.90 | 126.10 | 125.65 | 124.85 | 124.00 |
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| Resistance | 127.85 | 128.15 | 129.00 | 129.40 | 130.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 128.15 targeting 124.85 and stop loss above 129.40 may be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Weekly Report (18-22/July/2011)
The pair's stability below the previously breached horizontal support at 113.65 is a good sign that the expected downside movement may continue during the upcoming period. Examining the image above, we can notice the last correction level 76.4% at 110.25 is the key for confirming more downside movement over the short term. The general bias is to the downside and supported by the 50 EMA. Therefore, we expect downside move during the week and the main target resides at 107.10 followed by 106.15 while breaching 113.65 shall invalidate our suggested scenario.
Trading range for the week is among the major support at 106.15 and the major resistance at 114.85
The short term trend is to the downside targeting 100.00 as long as 123.30 remain intact.
| Support | 110.70 | 110.25 | 109.55 | 108.75 | 108.20 |
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| Resistance | 111.90 | 112.70 | 113.25 | 113.65 | 114.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 111.90 targeting 107.10 and stop loss above 113.65 may be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report (18-22/July/2011)
Over daily basis, we can see the pair is confined within a negative rising wedge formation and the support of the formation resides at 0.8730 this pattern has formed within the short term ascending channel. The mentioned negative pattern besides the pressure from the 50 day EMA push us to expect a breach of the aforementioned support which will open the door towards the ascending support of the channel near 0.8555 and there we should monitor the pair carefully. To summarize, we expect a downside bias at the beginning of the week and breaching 0.8555 shall extend the downside move to initially target 0.8350, while breaching 0.8845 will push the pair to move again within the main upside trend.
Trading range for the week is among the major support at 0.8500 and the major resistance at 0.8940
The short term trend is to the upside targeting 1.0370, as long as 0.8165 remain intact.
| Support | 0.8730 | 0.8700 | 0.8665 | 0.8615 | 0.8555 |
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| Resistance | 0.8775 | 0.8845 | 0.8890 | 0.8940 | 0.8975 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with four-hour closing blow 0.8730 targeting 0.8555 and stop loss above 0.8840 may be appropriate. | ||||
