Technical Analysis

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Mon, 21 May 2012 19:30:40 GMT

EUR/JPY correction is likely to deepen

EUR/JPY attempts to recover for the second day, consolidating within the 101.56/14 price channel, after falling for almost 2 consecutive months. In case bullish trend emerges, investors could focus their attention on 101.56 (Weekly PP), a breach of which would expose 102.53 (61.80% Fibo) and 104.50 levels (200-day ma).

Mon, 21 May 2012 07:02:52 GMT

USD/CHF is weakening in the short term

In accordance with expectations, initial attempt to break through 0.9507 has failed, leading to a sell-off down to 0.9394, just below a weekly pivot point. This support, in conjunction with a formidable level situated at 0.9372/59, should be capable of preventing the dip from extending lower, to 0.9310/07. In the long term USD/CHF is expected to clear 0.9499/0.9507 and advance

Mon, 21 May 2012 06:51:07 GMT

USD/JPY to penetrate 78.86

USD/JPY is consolidating ahead of 78.86 (200 day SMA), implying the increasing possibility of retesting a downtrend resistance that has blocked the road towards 82.91. Nonetheless, the currency pair is viewed by most of technical indicators as bearish and therefore yet unable to overcome 79.57/78. Consequently, we are likely to observe a dip down to 77.04/76.92 before bullish momentum is

Mon, 21 May 2012 06:47:56 GMT

GBP/USD to remain capped by 1.5888/1.5922

The Cable is currently recovering, following its recent encounter with a support at 1.5784 (200 day SMA). However, the rally is expected to be tepid, given a number of tough resistances that lie overhead - 1.5888/1.5922 and 1.6044/77. Accordingly, GBP/USD is anticipated to refocus supports once it bounces off one of the indicated resistance zones and aim for 1.5544 and

Mon, 21 May 2012 06:29:24 GMT

EUR/USD's gains should be limited

The currency couple is presently undergoing a bullish correction following its precipitous fall from a downtrend resistance at 1.3252. EUR/USD may attempt to test 1.2903/17, but is unlikely to extend gains above this level, which, in turn, will lead to continuation of a bearish move towards 1.2509, en route to a long term target at 1.18.

Fri, 18 May 2012 08:46:03 GMT

USD/CHF to struggle at 0.9487/0.9507

USD/CHF has just encountered a confluence of resistances at 0.9487/0.9507. This might lead to a short term bearish correction, which is unlikely to extend below 0.9405, being reinforced by 0.9359. In any case, the pair preserves its bullish outlook, since most of daily indicators point to the upside, meaning gradual erosion of a resistance at 0.9487/0.9507.

Fri, 18 May 2012 08:28:54 GMT

USD/JPY dips precipitously

Instead of sustaining a rally above 80.00, USD/JPY has pierced through several supports and is presently closing in to a level at 79.19. Nonetheless, the currency pair still might stabilise and recommence recovery if it manages to bounce off 78.96/84, under which no considerable supports are situated until 76.92, implying a long fall before any consolidation.

Fri, 18 May 2012 08:17:07 GMT

EUR/USD to test 1.2645/42

EUR/USD has decided not to interrupt its move downwards and is about to hit a support at 1.2645/42, which stands in the way of reaching 1.2580. Given preceding behaviour of the pair, it is likely that it will slide down to 1.2509 eventually, break of which would imply increased possibility of extension of a dip to 1.18 - downtrend support.

Fri, 18 May 2012 08:16:48 GMT

GBP/USD to focus on supports

GBP/USD has experienced a massive sell-off yesterday, which does not seem to have ended yet. Being that a key support at 1.5781 has already been violated, the Cable is currently headed towards 1.5616 and 1.5557, below which lie 1.5427 and a long term target 1.5260. In the meantime, rallies should by capped by a relatively strong resistance area located at

Thu, 17 May 2012 07:46:10 GMT

USD/CHF to slip down to 0.9372/59

Following a test of a formidable resistance zone situated at 0.9466/0.9507, USD/CHF seems to have started a short-term bearish correction. Contraction is unlikely to extend far beyond 0.9372/59 and 0.9310, which should provide sufficient support while the pair restores its strength and recommences advancement towards 0.9507 and above.

Thu, 17 May 2012 07:30:49 GMT

USD/JPY fails to sustain a rally

USD/JPY did not manage to sustain its rally above 80.00 and is slowly pulling back after test of a resistance at 80.42/49, even though it was not viewed as a major level en route to 83.00. As long as a key support at 80.00/79.84 withstands bearish pressure, the outlook for the pair should still remain bullish. The latter level guards

Thu, 17 May 2012 07:22:48 GMT

GBP/USD challenges 1.5922/1.5869

At the moment GBP/USD struggles with a support situated at 1.5922/1.5869, which is about to be eroded, given strong downward impetus of the pair after encountering a tough resistance. In order to confirm further bearish intentions, the Cable, however, will have to push through 1.5781 (200 day SMA), thus opening the way towards attainment of 1.5262.

Thu, 17 May 2012 07:04:02 GMT

EUR/USD is consolidating

Following violation of support at 1.2830/12 and 1.2763, EUR/USD is now showing some signs of stabilisation. Therefore the currency pair is likely to consolidate ahead of 1.2645/42, which should be able to halt near term dips. However, in the longer term EUR/USD remains bearish, being that it is currently capped by a formidable resistance area located at 1.3014/28.

Wed, 16 May 2012 07:36:25 GMT

USD/CHF to aim for 0.9510

USD/CHF has effortlessly pierced though a number of resistances and is currently well-placed for additional gains up to 0.9510, which should cap the pair in the near term, but is unlikely to withstand bullish pressure for an extended period of time.

Wed, 16 May 2012 07:31:13 GMT

USD/JPY surged above 80.11

USD/JPY has finally managed to overcome a downtrend resistance and should now focus on inching higher in pursuit of levels that lie overhead. Intermediate resistance is located at 80.38, followed by 80.49 and 80.90/98.

Wed, 16 May 2012 07:26:01 GMT

GBP/USD to slide lower

As anticipated earlier, the Cable was unable to breach a tough area at 1.6106/10 formed by a cluster of resistances and has already eroded a support at 1.6015/1.5998, implying increasing downside risk.

Wed, 16 May 2012 07:21:08 GMT

EUR/USD is about to encounter 1.2645/42

Bearish momentum persists and is unlikely to vanish for the time being. After penetrating supports located at 1.2830/12 and 1.2763, EUR/USD is now headed towards a subsequent level situated at 1.2645/42, where we expect the currency pair to consolidate before recommencing downward movement and resuming a journey to a long term target at 1.18.

Tue, 15 May 2012 07:38:16 GMT

USD/CHF preserves bullish outlook

The pair has extended the rally and soared up to 0.9359. USD/CHF is likely to consolidate before recommencing growth, although a pullback should be mild, not far below 0.9297or 0.9250.

Tue, 15 May 2012 07:26:48 GMT

USD/JPY should stay bearish until 78.79/67 is reached

USD/JPY was not capable of breaching 80.11 yesterday, but still was able to limit losses near a support at 79.84. The currency pair should keep on struggling with a downtrend and eventually overcome it, paving the way towards 81.49 (55 day SMA) first, then up to 83.11, where a major resistance is located.

Tue, 15 May 2012 07:13:30 GMT

GBP/USD to bounce off 1.6106

Rally of the Cable has been halted by a tough resistance situated at 1.6106/11, which is reinforced by additional level situated at 1.6150/62, being a temporary cap for the pair. Therefore the focus is on supports.

Tue, 15 May 2012 06:54:44 GMT

EUR/USD to push through 1.2830/18

EUR/USD continues to be sold off, since there are currently no signs of a possible recovery in the near term. The currency pair is presently attempting to stabilise at 1.2830/18. However, this support and the subsequent line at 1.2763 are likely to be broken, since EUR/USD is moving en route to a stronger level at 1.2645/42.

Mon, 14 May 2012 08:28:03 GMT

USD/CHF to surge

The currency couple has preserved its bullish momentum and thus should remain on a course towards a long term target at 0.9487/0.9513. Resistances located at 0.9359, 0.9405 and 0.9463 will attempt to hamper the rally, however, are anticipated to fail to do so.

Mon, 14 May 2012 08:14:01 GMT

USD/JPY to challenge 80.11

USD/JPY has managed to stabilise ahead of supports that are situated at 79.84/61, 79.19/78.96 and 78.79/67. This implies an increasing possibility of the pair reversing a fall from Mar 14 and commencing recovery.

Mon, 14 May 2012 08:08:12 GMT

GBP/USD maintains bearish bias

Break of a tough resistance at 1.6107/36 was not sustained, leading to a dip down to 1.6050. At the moment the pair is consolidating, but is viewed as able to renew bearish behaviour in near future, being that daily indicators point to the downside.

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