VIDEO: Weekly Forex Wrap Up Feb 4, 2011 |
EUR/USD Weekly
This week saw the second shooting star in a row at the underside of the most recent uptrend line. This shows that the buyers are getting exhausted. However, due to the supportive nature of 1.35, this isn’t a straight sell until we get a close below it.
If the 1.35 area is breached, the 1.29-1.30 area should be the next target. With the formations and trend being down, odds favor a break down. However, until that 1.35 area is breached, we can only assume it’s going to consolidate for a while.
CHF/JPY
This pair has become completely locked in consolidation. In the past we have seen various rectangles form, and that is where we are at now. In the 85-90 rectangle area we now find ourselves, as it have been distinct over the last few weeks.
We are currently stuck between the 86 and 88 handles. Any close above the 88 handle should see a run towards 90, and a close between 86 should see a breakdown from that point.
USD/JPY
On the USD/JPY weekly chart you can see support being found at the 81 handle. This week’s bar formed a bullish hammer as well. Any long term trades from here would have to be very patient, as we have been in a down trend since the summer of 2008. Any buy signals wouldn’t be triggered until at least 82.50, and quite possibly 83.
AUD/USD
Looking at the Aussie Dollar, you can see it has been bid up quite nicely this week. We are currently still in our consolidation range of .97 to 1.02 – and have been for quite some time.
Any break above the 1.02 handle would imply a move to 1.07 as the rectangles we have see a 500 pip trading range in the current rectangle. Any break below .97 would see strong support at .95, and as such shows the strength of this moves overall. Any dips in price should be thought of as a buying opportunity.
EUR/AUD
If you have EUR/USD weakness, and AUD/USD strength, then EUR/AUD should look poor, and it does. The trend is certainly down, and can be shown from various trend lines in different angles.
Last week’s candle was a doji and we have broken down fairly hard in this pair this week. It should be noted that the daily bar on Friday was a bullish hammer pattern, but it should be noted that the 1.39 level is significant resistance. As such, this pair is probably getting ready for a small bounce. All things considered, this pair should be sold on rallies.
Originally posted here.
