For November 2nd 2009

For November 2nd 2009

EURUSD

Since the last update, Euro had continued to fall and went to as low as 1.4682 just below the 61.8% retracement level. Despite its rally on Thursday, the single currency had been pushed out of the ascending price channel and ended up closing at 1.4717. If we look at it, EURUSD’s pattern is rather similar to some stocks’ pattern recently. It is likely that we are going to see another attempt on the downside on Monday, targeting the next fibo support at 1.4617. Short-term traders may as well pleased to see how convenient the bounces were when 1.4838, 1.4769, and 1.4701 were hit last week. I think this time around, the pattern will repeat itself when 1.4617 is reached. Upside, the resistances lie at 1.4858, 1.4871, and 1.4915. Downside, the pair will be eyeing for 1.4479 when the support at 1.4617 is cleared. Look to SELL on upticks.

GBPUSD

Apparently, I was mistaken last week as cable catapulted towards 1.6603 on Thursday, retracing around 76.4% of its loss from 1.6692. Friday saw the pair tumbled again, erasing 50% of the prior gains. This time, the slide may continue towards 1.6384 and 1.6334 before it must attempt to crack the key low at 1.6249. Upside, the crucial resistance will be at 1.6692, but near-term 1.6603 looks safe for now. Look to short while below 1.6603, with objectives set at 1.6384 and 1.6334 first. Stop should be set above 1.6603. A rally beyond 1.6603 may suggest that the Friday’s retreat was merely a dip and bullish outlook will set in.

USDJPY

With 91.56 support gone, the direction reversed towards the downside. Apparently, the yellow zone was too tough to break through. Friday’s losses erased prior week’s gains and the pair ended up in a bearish engulfing candle pattern. This suggests more decline to come in upcoming sessions. Downside, the objectives lie at 89.65 and 89.02. Resistances are seen at 90.80 and 91.60. Yen has turned out strong recently as it made spectacular comeback against the likes of EUR, GBP, CHF, AUD, and CAD. Look to sell on corrective rallies towards mid-90s for the resumption of the decline towards 89.65 and 89.02 and later 88.00. Any information contained in this document are based on or derived from information generally available to the public from sources believed to be reliable. There’s no representation or warranty is made or implied that it is accurate or complete. Any opinions expressed are subject to change without notice. This post has been prepared solely for information purposes and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.

Charts are obtained from Alpari UK