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Technical Major Currencies
Written by article default Monday, 28 November 2011 07:09
Weekly Report 28/11 – 02/ 12/ 2011
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The pair opened this week above 88.6% Fibonacci correction as shown above at 1.3270. This sign is positive, but also we cannot confirm the return of the upside move based on this sign. Furthermore, the negative bias seen on the daily chart is accompanied with Stochastic being in oversold areas, while the relative strength index reached the 20-point level. Therefore, we remain neutral in our weekly report, awaiting more confirmations.
The trading range for this week is among the major support at 1.3000 and the major resistance at 1.3490.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
| Support | 1.3270 | 1.3220 | 1.3160 | 1.3110 | 1.3080 |
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| Resistance | 1.3305 | 1.3350 | 1.3380 | 1.3410 | 1.3490 |
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| Recommendation | Based on the chart and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Weekly Report 28/11 – 02/ 12/ 2011
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Consenting to the previous report hinted oversold signal on RSI 14, the pair started the week with a gap above 76.4% Fibonacci retracement of the entire upside rally from 1.5270 to 1.6165 as seen on the provided four-hour chart. The current upside recovery could reach the upper line of the downside channel where RSI will enter the overbought areas once more. The aforesaid descending channel's resistance is very close to 61.8% Fibonacci retracement and it may act as a point for the potential resistance where the downside rally will be resumed. A break back below 1.5410 areas will bring panic sell-off actions, chiefly targeting 1.5270 zones.
The trading range for this week is among key support at 1.5075 and key resistance at 1.5820.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.
| Support | 1.5415 | 1.5375 | 1.5270 | 1.5180 | 1.5075 |
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| Resistance | 1.5580 | 1.5630 | 1.5680 | 1.5720 | 1.5780 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5560 targeting 1.5270 and stop loss above 1.5750 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 28/11 – 02/ 12/ 2011
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In line with our Friday's analysis, the pair has soared, breaching 50% Fibonacci retracement of the aggressive upside rally from 75.50 to 79.50 as seen on the provided four-hour chart. This breakout has activated stability above SMA 100 but the overbought signs started to appear on momentum indicators –RSI and Stochastic- and thus, we believe that the pair will move mildly downwards to relieve indicators before resuming the upside rally. The secondary image of the weekly basis shows that the previous week's candlestick was definitely bullish and that solidifies our constructive bullish outlook over short term basis. Ultimately, a break of 77.90 will accelerate inclines.
The trading range for this week is among key support at 75.50 and key resistance now at 80.00.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 77.15 | 76.95 | 76.60 | 76.40 | 76.10 |
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| Resistance | 77.90 | 78.45 | 79.55 | 80.00 | 80.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.30 targeting 79.55 and stop loss below 76.10 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 28/11 – 02/ 12/ 2011
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Consolidation above 0.9235 negates the first reversal point (D1) of the suggested Butterfly pattern, which suggests testing the second reversal point (D2) at 0.9400. But at the same time, Stochastic is negative, which could support the pair to decline again in attempts to settle below the first reversal point in order to confirm the completion of the Butterfly pattern. Therefore, we remain neutral as long as the pair is stable in the current levels, awaiting further confirmations.
The trading range for this week is among the major support at 0.8940 and the major resistance at 0.9560.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9235 | 0.9185 | 0.9120 | 0.9080 | 0.9050 |
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| Resistance | 0.9305 | 0.9335 | 0.9370 | 0.9415 | 0.9480 |
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| Recommendation | Based on the charts and explanations above we remain neutral, awaiting more confirmations | ||||
Canadian Dollar (CAD)
Weekly Report 28/11 – 02/ 12/ 2011
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The pair declined sharply affected by 78.6% Fibonacci correction, where we see a daily closing below this level. But at the same time, the pair is still above the ascending support level shown in red, and also above the critical intraday barriers of 1.0255 and 1.0275. Therefore, the current downside movement is only a correction to relieve momentum indicators before the return of the upside move.
The trading range for this week is among the major support at 1.0100 and the major resistance at 1.0690.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0375 | 1.0305 | 1.0275 | 1.0205 | 1.0185 |
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| Resistance | 1.0400 | 1.0475 | 1.0500 | 1.0560 | 1.0620 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0275, and take profit in stages at (1.0375 and 1.0475) and stop loss with 4-hour closing below 1.0185 might be appropriate | ||||
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