Weekly Forecast

Stress Test
Resources from FXStreet

7 of the 91 banks tested has failed the test, with a necessity of global EUR 3.5 billion extra capital in case of continuing crisis until end of 2011. In case of sovereign shock, the aggregate lost to the whole testing could be of EUR 67.2 billion.
The Euro has been shaken by the stress release, the EUR/USD rose quickly before reportfrom daily low at 1.2790 to test 1.2900 and get back to 1.2800 again after stress releases. Currently the pair is trading around 1.2820/40. EUR/JPY lost 110 pips after results and the EUR/GBP avoid its recovery from 0.8315, 1-week low, at 0.8360 to price back around 0.8330.

GBP/USD

Friday GBP/USD has gain +162 pips, biggest gain in a week.
From 30Mins we can see that this pair is currently resisted @ 1.5480 region.
Previous week high 1.5448.

next week, I reckon this pair to turn up before coming down.
After breaking the First Resistance 1.5480, Up potential at:
TG1: 1.5550
TG2: 1.5650

From 1.5650, I will observe for reversal sign, to short.
Existing Support 1.5350.

EUR/USD

Phew~ Had made some quick profit from the high of 1.3027 on 20/3/2010.
Before the roller coaster ride~~

EUR/USD closed the weekly candle near the week's opening price.

Trading Range for Monday: 1.2990 - 1.2740
Good to look for short around 1.2990 with 60 pips stop loss.
Down potential 1.2400 region.

USD/JPY

Apart from all the roller coaster ride, I like this pair which is quietly working on its way up.

Weekly chart, Harami candlestick reversal pattern.

overhead resistance at 87.50 now.
He is trying hard to break this level, do look into 30 minutes chart, it has been trying to break this resistance at least 3 times on friday, each time he tries, he has a higher and; higher low.

Although this pair do not have the almighty big trading range like Pound and Euro, but this pair has been working its way up, like the executives working on the corporate ladder.  Breakout from 87.50 will lead to 89.00 region.

Failure to break 87.50 will test 86.50 region again.

Trading Range for USD/JPY:
86.53 - 87.86.

DJIA

Fundamental:

• A dividend hike from General Electric Co and mostly positive earnings, including from a handful of big blue-chips, combined to lift Wall Street.
• After receiving the results of the "stress tests" on European banks with caution, investors bid up stocks broadly late in the day, putting the Dow Jones industrial average on pace for its fourth gain during the week.
• These good news which has been lifting up Wall Street might be temporary as "The economy is still struggling; too many Americans are still out of work; and the nation's long-term fiscal trajectory is unsustainable," the White House said in the annual midsession review of President Barack Obama's budget.

Technical:

DJIA has crossed the previous high of 10,407 and closed at 10,424.
The bull might be fighting with his last breath so look closely for short opportunities before the fall in August!
Overhead resistance at 10,450, there are two possibilities:

1. DJIA to continue to head north in the coming week, to form the right shoulder before turning down.
Look for opportunity to short when this pair approach 10,550 - 10,600 region.

2. DJIA to form a black candle with short shadow, we will see a clear divergence in 30 Minutes chart, get ready to short for quick profits.
Trading Range: 10,150 - 10,430