Monday, September 5, 2011

Weekly Forecast (FX)


GBP/USD has dropped for 3 days to 1.6129 last Thursday and formed a reversal candlestick pattern on Friday.
Coming week, forecast short term rebound to happen, GBP/USD trading up to resistance 1.6300.

However, based on Friday price action, reckon market to continue trading in range with a potential to trade lower back to 1.6130 region.  I prefer to long at this support and aim for 1.6300 target exit, up to 1.6450 strong resistance.


Normally I have similar view on GBP/USD and EUR/USD.
But... I think the drop has not finished yet on EUR/USD.  I haven't seen reversal pattern on EUR/USD, so I can only forecast the market to continue trading lower until EMA200 (Daily) 1.4050 region.

Weekly chart: bearish
Daily chart: bearish
4 hour chart: free falling market - bearish

EUR/USD is trading at 1.4200 level, prefer to pick short at 1.4240 region, aim to exit 1.4050.

Mid Week:
After falling for consistent 5 days, reckon the market to rebound upon touching EMA200 (Daily), if that happen with a reversal candlestick pattern, EUR/USD will qualify for a Long entry with the target at 50% Fibonacci Retracement around 1.4350.

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