subject: FOREX weekly Trend Analysis 4th Oct 10 [print this page] FOREX WEEKLYTrend Analysis FOREX WEEKLYTrend Analysis
EURUSD current bull move shows good strength from the lows and looks to continue higher until the target levels of 1.3900 which is the 50 day SMA on the weekly charts and is also the 50% Fibonacci retracement levels of the previous fall from 1.5140 to the lows of 1.1878. EURO trades in the overbought zone and USD in oversold areas, any euro-negative news may trigger a selling but as of now we do not see any bearish or topping formation. The market is in a clear up trend and has to reach the pivotal areas such as 1.39 to complete the rally. This is only the immediate target we can guess but the strength shows us that we can even see a break on this resistance and can touch 1.4050 to complete this current swing. Those who have long positions must trail the stops higher to lock their gains. Look to buy on dips instead going short in such bullish trends.
GBPUSD rally extends the gain to the highs of 1.5925 so far and is almost near our projected levels of 1.5997. On the lower side the supports of 1.5650 really worked well attracting good buyers. We are seeing an ascending channel formation on the day chart and looks that the pair is heading to test 1.60/1.6050 in the coming week. The trend may turn neutral if breaks the lower supports of 1.5650.Sideways behavior in previous week shows that pound is also the weak currency but still maintains on higher grounds on continuous dollar weakness.
USDJPY after the sharp rise on Government interventions meets resistance near 85.90 and remains below it. The trend is stillseen bearish and can continue further lower to retest the previous low. I do not see any upside above 84.20 areas as dollar is continuously weakening but in the scenario when yen gains on other pairs we can expect another government intervention. Higher resistance comes at 86 with lower supports seen near 82.90.
USDCAD is trading in the sideways direction from last few weeks with lower supports at 1.0200 and resistance seen at 1.0350. RSI indicator has given a break on the trend line supports in the daily chart alerts a further bearish move until the lower supports of 1.0100/0.99 in the coming weeks. The range which was seen from last few weeks might see a breakout on the lower side.
AUDUSD after a break above 0.9405 brought a good bullish rally as anticipated and is nearing the next higher resistance of 0.9849 in the coming weeks. The strong support zone is now seen at 0.9530-0.96 areas. It is trading well above the 200 and 100 day moving averages indicating further bullishness.
Crude Oil as anticipated gave a good bounce from the supports of $73.50 and forms a high of $81.68 which is almost near the projected levels of $82. The rally is expected to continue further higher until the previous highs of $83. Only a close below the supports of $80.20 may bring bearishness.
Gold as anticipated continues higher and is almost near our first target of $1355 and may continue higher until $1400 in the medium term. Only a close below the 14 day SMA and the support of 1290 may form a top on the ongoing upward trend. Most of the indicators are running in the over bought areas but the price has still not given any topping or a reversal pattern.
Capital market advisory unit giving accurate news on live markets which helps an investor to trade logically and benefit from it. After analysing technical charts they update the live trading calls and breakout opportunities inwww.CapitalTA.com covering UAE, FOREX, US and Commodity markets according to the needs of an individual.
