Weekly Forecast (FX)

EUR/USD

Last week, we forecasted the probability of EUR/USD double top and come down to 1.3250, however, it didn't happen and also break above 1.3455-1.3496.  From my Wednesday posting, you know we are looking forward to EUR/USD reach 1.3620 if my SL is triggered.  Read: EUR/USD on 19-Jan-2011 (Wednesday).

From Weekly time frame, it seems that reaching 1.3620 with a bullish candle on Daily Chart, presents a high possibility of EUR/USD rally to upside, with a new target at 1.4030, or double top of 1.4280, by end of February 2011.

I abandon short, and looking to Long EUR/USD on short term correction.

R2: 1.3950
R1: 1.3800
Intraday support:
S1: 1.3565
S2: 1.3503-1.3496 (Prev High)

For intraday trade, preference is to Long at S2: 1.3496 SL 1.3440 TG 1.3670.
It is a bit difficult to place a long term trade on EUR/USD now, although I am looking forward to 1.40 region, I doubt we can find a good entry... Observe the development of EUR/USD.

GBP/USD

**** Favourite Market ****
I reckon GBP/USD to trade in range of 300 pips this week, bias up.
Support 1.5850
Resistance 1.6050
Double Top Resistance 1.6180 (Nov-2010 High)

Trading Range for the week: 1.5850 - 1.6180.

Intraday recommendation: Long @ 1.5950 / 1.5850. SL 40 pips, Target 1.6169.
Avoid trading if you do not like consolidation, but to be honest, my personal opinion: it seems that support at 1.5850 is a good level for a long ride... :)

Average Day Range ≈ 140 pips

p/s: I am actively watching GBP/USD, Gold and DJIA.  Therefore coverage on USD/JPY will be less unless good reversal and day range >100 pips.

Related Post: Weekly Foreacast (FX)