•  
  • New York 17:06
  • London 21:06
  • Barcelona 22:06
  • Tokyo 06:06
  • Sydney 08:06

  • SignUp | Login

Daily Technical Analysis

EUR: The strongest weekly close so far this year

Mon, Feb 19 2007, 08:39 GMT
by Nicole Elliott

Mizuho Corporate Bank  |  View company's profile


Vote:

0

0

EUR

Comment: The strongest weekly close so far this year but still below the top of the ‘flag’ pattern. If not today then some time this week we favour a break above here to test more important long term resistance at 1.3300. Note that the Euro is not overbought and that open interest is still well below the record highs of late last year so a lot of position rebuilding still needs to be done.

Strategy: Buy at 1.3140/1.3100; stop well below 1.3050. Short term target 1.3170, then 1.3300.

EUR/JPY

Comment: Last week’s sell off here, and in many Yen crosses, feels very big only because it is such a contrast after the bull run of the last three months. It is still very much within normal correction and consolidation parameters and crosses are currently trying to base against the 156.00 area. We expect prices to hold below the all-time high this week and maybe until the end of March, so there is no need to rush in a buy more. For today we favour random moves roughly between 155.80 and 157.80.

Strategy: Attempt small longs on another dip to 156.70/156.40; stop below 156.00. Cover ahead of 158.00.

GBP

Comment: Lagging this week’s strongest (New Zealand, South Africa and Norway) as we move randomly in the middle of the broad trading band in place since late November. Over the coming week/fortnight we favour yet another upside test of 1.9700/1.9750.

Strategy: Buy at 1.9545/1.9495; stop below 1.9400. Short term target 1.9600/1.9650, then 1.9750.

JPY

Comment: A large ‘bearish engulfing’ candle on the weekly chart, completing a ‘broadening top’, and below the pivotal 120.00 level. This suggests that the move above 120.00 is some sort of ‘extension’ and that prices will hold below 122.20 for the rest of this quarter. The question now is it will move down slowly, with lots of consolidation either side of 118.00, or whether we will collapse to the 115.00 area as we did in December 2005. Very good volume on Thursday and more position-trimming suggests too many were short of the Yen. For this morning expect prices to consolidate above 119.00 with rallies probably caped just below 120.00. Then down to 118.50 and 118.00.

Strategy: Sell at 119.35/119.55; stop well above 120.38. Short term target 119.00 then 118.55.

Published on  Mon, Feb 19 2007, 08:48 GMT


Mizuho Corporate Bank http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

Archive


Legal disclaimer and risk disclosure

The information contained in this page is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This page has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.
Vote:

0

0


Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account		IG Markets
Contact the broker/FDM
Open a demo account		Deutsche Bank
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.