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 Forex Analysis
04

Technical Major Currencies


Euro


 

Weekly Report 4 – 8 / 1 / 2010

 EUR

 

The euro versus dollar mentioned throughout last week's reports  where it was able to trade near main support shown above at 1.4230. Momentum indicators return to show positive bullish signs that make us expect a bullish direction for this week heading mainly towards 1.4790, requiring the breach of main resistance at 1.4445 and then 1.4575.Keep in mind that this expected scenario will prevail if we do not witness a daily closing below 1.4203.

 

The trading range for today is among the key support at 1.4000 and the key resistance at 1.4790.

The general trend is to the upside as far as 1.4035 remains intact with targets at 1.6000.



Support 1.4230 1.4175 1.4110 1.4035 1.3945

Resistance 1.4395 1.4470 1.4575 1.4695 1.4790

Recommendation Based on the charts and explanations above our opinion is buying the pair from 1.4230 targeting 1.4445 and stop loss below 1.4110, might be appropriate.


Great British Pound (GBP)


Weekly Report 4 – 8 / 1 / 2010

 GBP

 

The cable succeeded in achieving the expected scenario in last week's report, where it halted ascending near pivotal resistance mentioned at 1.6255. Signs of stability are appearing above support levels for the descending channel, in addition to the bullish technical pattern that is currently forming; thus, making us expect normal trades within the shown direction and therefore move to the upside to target resistance levels for this channel at 1.6445. From here, we see that the expected direction for this week is bullish and requires the breach of main resistance 1.6255, while taking into consideration the importance of the daily closing remaining above 1.5920 to maintain chances of achieving these expectations.

The trading range for today is among the key support at 1.5700 and the key resistance at 1.6445.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.



Support 1.6025 1.5920 1.5830 1.5805 1.5700

Resistance 1.6190 1.6255 1.6325 1.6410 1.6485

Recommendation Based on the charts and explanations above our opinion is buying the pair from 1.6025 targeting 1.6255 and stop loss below 1.5920, might be appropriate.


Japanese Yen (JPY)


Weekly Report 4 – 8 / 1 / 2010

 JPY

 

The dollar versus yen continued pushing to the upside to near main resistance levels for the descending channel that represents the general bearish direction for the pair, shown through the image above. Momentum indicators are moving around overbought signs, which make us expect a bearish reversal near to starting the bearish direction over the short term, where it will start building its base on main resistance 94.10 and head towards targeting 88.60 mainly, and then 86.30. Chances of achieving this bearish direction will prevail if trades remain below 94.10.

 

The trading range for today is among the key support at 87.20 and the key resistance at 95.00.

The general trend is to the downside as far as 102.60 remains intact with targets at 82.60.



Support 92.20 91.10 90.35 89.60 88.60

Resistance 93.05 94.10 95.00 95.65 96.00

Recommendation Based on the charts and explanations above our opinion is selling the pair from 94.10 target 91.01 and stop loss above 95.00, might be appropriate.


Swiss Franc (CHF)


Weekly Report 4 – 8 / 1 / 2010

 CHF

 

The dollar versus swissy last week was stuck between the MA for 50 and 100 days, while continuing to lean towards momentum indicators to show negative signs moving to the downside. The 38.2% Fibonacci correction has started to form pivotal support at 1.0280, which represents the neckline for the suggested bearish technical pattern that is currently forming, as we expect it to continue its negative pressure to breach this level and then pave the way to achieve a bearish short term direction for this week, its main target starts at 1.0055. It is vital to pay attention that ,the breach of pivotal resistance 1.0530 will make the expected scenario fail and reverse the short term direction to head upwards.

 

The trading range for today is among the key support at 1.0055 and the key resistance at 1.0650.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.



Support 1.0280 1.0200 1.0140 1.0055 0.9960

Resistance 1.0370 1.0450 1.0530 1.0610 1.0695

Recommendation Based on the charts and explanations above our opinion is selling the pair with the breach of 1.0280 targeting 1.0055 and stop loss above 1.0370, might be appropriate.


Canadian Dollar (CAD)



Weekly Report 4 – 8 / 1 / 2010

 CAD

 

The dollar versus loonie has been able to breach the symmetrical triangle support level, shown in last week's report and pointed out in the daily chart above, where the breached support succeeded – that had turned into resistance- in holding its stance throughout the retesting process for this breach; thus, strengthening chances of an expected bearish direction to prevail. From here, we see that the expected bearish direction for this week is to the downside, building a base on breached support 1.0550 and head towards 1.0200 mainly and then 1.0100; requiring the daily closing to be below 1.0635.

 

The trading range for today is among the key support at 1.0100 and the key resistance at 1.0780.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.



Support 1.0440 1.0360 1.0270 1.0270 1.0100

Resistance 1.0550 1.0635 1.0690 1.0780 1.0845

Recommendation Based on the charts and explanations above our opinion is selling the pair from 1.0550 targeting 1.0360 and stop loss above 1.0690, might be appropriate.

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