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Technical Cross
Written by article default Monday, 01 August 2011 07:21
Weekly Report (01-05/08/2011)
The pair is trading again within the range shown in image, it's approaching the resistance of the main descending channel. Stochastic is providing positive signs while the 50 EMA continues to pressure trading within the descending channel. Therefore, we expect the downside bias to continue this week targeting initially 125.65 followed by 124.00 where stability below 128.15 is required for these expectations to be valid.
Trading range for the week is among the major support at 123.30 and the major resistance at 129.00.
The short term trend is to the downside targeting 112.00, as long as 150.00 remain intact.
| Support | 127.50 | 126.90 | 126.50 | 126.10 | 125.65 |
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| Resistance | 128.15 | 128.55 | 129.00 | 129.50 | 130.00 |
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Euro vs. Japanese Yen (EUR / JPY)
Weekly Report (01-05/08/2011)
The 76.4% Fibonacci retracement supported trading very well and pushed the pair toward the 61.8% level at 112.80. In general, the latest breach of 113.65 hints to potential downside targets, and this is supported by the 50 EMA. Therefore, expect a downside move for this week which requires a breach of 110.25 to target 109.55 and 108.75. Breaching 112.80 may delay the awaited targets.
Trading range for the week is among the major support at 108.75 and the major resistance at 113.65.
The short term trend is to the downside targeting 100.00, as long as 123.30 remain intact.
| Support | 111.60 | 110.80 | 110.25 | 109.55 | 108.75 |
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| Resistance | 112.00 | 112.80 | 113.65 | 114.10 | 114.80 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair around 112.80 targeting 110.25 and stop loss above 113.65 may be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Weekly Report (01-05/08/2011)
The pair settled below the ascending support of the rising wedge formation shown in image by closing last week below the level, and this adds more confimation to our expectations for a downside move this week. For now, we need a clear breach of 0.8750 and stability below it to activate the effect of the bearish technical pattern which targets initially 0.8555. Breaching 0.8830 may delay the suggested scenario and lead to some intraday bullishness.
Trading range for the week among the major support at 0.8555and the major resistance at 0.8900.
The short term trend is to the upside targeting 1.0370, as long as 0.8165 remain intact.
| Support | 0.8750 | 0.8700 | 0.8665 | 0.8615 | 0.8580 |
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| Resistance | 0.8770 | 0.8830 | 0.8890 | 0.8940 | 0.8975 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair with four-hour closing below 0.8750 targeting 0.85555 and stop loss above 0.8830 may be appropriate. | ||||
