Weekly Forecast (FX)

EUR/USD

Technically, we saw a bearish engulfing pattern in Daily Chart on EUR/USD and current high of 1.4282 marked as a good resistance level.

Friday Closing: 1.4030
Strong Resistance: 1.4282
Current Resistance: 1.4249
Potential Support: 1.4000
Next Support: 1.3860

If we employ Fibonacci retracement theory, we can find that it is a good level to short if we are going to place our short at 1.4140 region, SL 1.4180, TG at 1.4000 potential support.  If you want to play safe, you can either short at 1.4200 region with your SL placed at current resistance level of 1.4250 (personally I think it is a bit too far but who cares if you do not get an entry today, tomorrow is another new day).


GBP/USD

Harami pattern, Stochastic Cross at 87 region, with GBP/USD formed a reversal on Day chart, without hitting my target 1.6350, what am I going to do?

Highest 1.6295 on Thursday.

I believe this pair would face a few days of downward pressure, and waiting for Tuesday news release on Manufacturing Production m/m at 5.30pm (GMT+8).

Breaking below 1.6150 confirms the downturn, lead to first target 1.6000 then 1.5650.
Next, without breaking 1.6000, and reverse, then this pair might have potential to hit higher :) continue to drive north and go towards 1.6350.

Ayumi stay out.


USD/JPY

This week Lowest (1-Nov-2010): 80.30
This week Highest (4-Nov-2010) : 81.58
Closing on Friday (5-11-2010): 81.26

Quite positive on USD/JPY pair.  Bullish Engulfing Pattern at the bottom of the chart.
Bearish trend in USD/JPY is very obvious too.

Travel in consolidation, no direction in this currency pair, if you employ EMA4 and EMA20 trading method, you need to be patient, we are going to trade if USD/JPY breaks above 81.60 or 82.00.

Failing to break above these 2 levels, this pair is going to fall to 79.80 region --- Lowest level since April 1995.

Ayumi Waiting patiently.