Weekly Technicals 3rd – 9th February 2013

Supports – 1.3610 1.3475 1.3440
Resistances – 1.3710 1.3850 1.3950
Price range: $1.3440 – 1.3950
Trading call-

EURO ended last week’s session with gains of 1.33%, holding on to its 14- month’s highs and scaling the $1.3660 target set by the ascending triangle chart pattern.

The pair closed above the top end of the short- term bullish channel suggesting some more bullishness for the pair.

Close below $1.3600, the pair can slide to $1.3440- 1.3475.

On the upside, resistances are placed at $1.3710; highs of last week, followed by $1.3850 and $1.3950; top end of the long- term bullish channel.
Targets reached for the breakout of the ascending triangle chart pattern at $1.3175 for a profit target of $1.3660.

Short, medium and long- term trend – Bullish
Long EURO-
At $1.3600 with a stop at $1.3550 for a profit target of $1.3700.
At $1.3750 with a stop at $1.3690 for a profit target of $1.3925.
Short EURO- At $1.3550 with a stop at $1.3600 for a profit target of $1.3450.

Supports – 1.5625 1.5600 1.5300
Resistances – 1.5700 1.5830 1.6025
Price range- $1.5600 – 1.5830
Trading call-

Pound sterling extended its losses versus the US dollar for the third week in a row to end lower by 0.70%.

Sterling also ended the week closing at a fresh 5- month’s low versus the greenback and the currency pair remains highly bearish after failing to hold on to the $1.5830 levels.

Close above $1.5830, Sterling could rally to $1.5950- 1.6025, but the trend will revert to bullishness ONLY if the pair closes above $1.6150 for targets of $ 1.6300- 1.6350.

The near- term target is placed at $1.5600- 1.5625, while the mid and long – term our look is highly bearish for Sterling.

Short and long term trend- Bearish; Medium term trend- Bullish
Long Sterling-
At $1.5750 with a stop at $1.5700 for a profit target of $1.5825.
At $1.5890 with a stop at $1.5820 for a profit target of $1. 5975.
At $1.5600 with a stop at $1.5540 for a profit target of $1.5800.

Short Sterling-
At $1.5540 with a stop at $1.5590 for a profit target of $1.5350.
At $1.5830 with a stop at $1.5890 for a profit target of $1.5700.

Supports – 92.50 91.00 89.50
Resistances – 94.00 95.50 96.75
Price range – ¥92.00 – 96.50
Trading call-

The US dollar rallied against the yen to end the week with gains of 2%.

The greenback recorded twelve successive weeks of positive closes, not witnessed in many decades and closing at the highest level since April 2010.

The pair closed above the short- term bullish channel and is holding at crucial resistances of ¥92.75, break of which the pair should rally to ¥94.00- 95.50 in the near term with the medium term target placed at ¥96.50- 97.00; top end of the medium term bullish channel.

However, a close below ¥92.50 will negate this view and the pair can slide to ¥89.50- 90.00 very quickly.

Near and medium term trend – Bullish; Long term trend – Bearish
Hold on to long USD/JPY positions initiated at ¥92.25 with a stop loss at ¥91.75 for a profit target of ¥94.00. Long at ¥94.50 with a stop loss at 93.90 for a profit target of ¥96.00.
Short USD/JPY-
At ¥91.75 with a stop loss at ¥92.10 for a profit target of ¥91.00.
At ¥90.50 with a stop loss at ¥91.10 for a profit target of ¥89.75.