Monday, February 7, 2011

Weekly Forecast (FX)


EUR/USD started to come down after it tested the top of 1.3860 last week. From Day Chart, it has found a little support at 1.3543 (equivalent to 1/3 Fibonacci Retracement). I forecast EUR/USD to rebound to 1.37 this week before continuation of the downfall.

From intraday chart, we observed an innerwave up, likely to hit 1.3672 - 1.3728 early of the week, however, would EUR/USD hit above 1.3750 will depend on Fundamental news.

Early of the Week, enter Long with initial shadow: Long EUR/USD at 1.3580 SL 1.3540 TG 1.3680.


With the market pattern of GBP/USD, current support is 1.6034, resistance 1.6170, strong resistance 1.6276.
Suspect GBP/USD to rebound too, however, if GBP/USD can rebound from this low and break above 1.6170, it is very likely to challenge double top.

Compare this two major pair (GBP/USD and EUR/USD), Ayumi reckon that GBP/USD is slightly bullish compare to EUR/USD.  Therefore, tendency of GBP/USD breaking above 1.6170 is high, but there's no chart formation / pattern that we are familiar.

Prefer to stay out from trading GBP/USD as we are at the middle of the trading range.

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