Weekly Technicals 7th-13th January 2013

Supports – 1.3000 1.2960 1.3010
Resistances – 1.3125 1.3175 1.3400
Price range: 1.3000 – 1.3400

Trading call

EURO ended the week in the red, down 1.11%, slipping from an 8-month high before staging a recovering from a very crucial support at 1.3000.

The currency pair started the week on a very sedate note, ending flat on low volumes, but as volatility crept in during the latter half of the week, EUR slipped sharply after failing to hold on to a new weekly high.

The trend though continues to remain bullish with the EURO having broken out of an important mid- term chart pattern with an immediate target of 1.3400. However, all bullish bets are off if the EURO closes below 1.2960.

Important supports at 1.3000 followed by 1.2960, while crucial resistances are placed at 1.3125 followed by 1.3175.

Short, medium and long- term trend – Bullish

Hold on to long EURO positions initiated at 1.3020 with a stop at 1.2940 for a profit target of 1.3175.

Long also at 1.3230 with a stop at 1.3160 for a profit target of 1.3400.

Short EURO-
At 1.3400 with a stop at 1.3470 for a profit target of 1.3200.

Supports – 1.606 1.6010 1.5940
Resistances – 1.6125 1.6325 1.6425
Price range – 1.5940 – 1.6325

Trading call

Pound sterling ended the week in the red, down 0.60%, slipping from a 16-month high and staging a recovering from a very crucial support at 1.6010.

The short and medium term trend remains bullish with important supports placed at 1.6060 and 1.6010. Break and close below these supports, the pair could drift lower to 1.5940, while crucial resistance is placed at 1. 6125, close above which the short- term trend will turn bullish for an immediate target of 1.6325- 1.6350.

Buy on dips
Short term trend – Bearish
Medium and long term trend – Bullish

Long Sterling
At 1.6025 with a stop loss at 1.5980 for a profit target of 1.6125.
At 1.5950 with a stop loss at 1. 5890 for a profit target of 1.6125. At 1.6200 with a stop at 1.6160 for a profit target of 1.6300.
Short Sterling
At 1.5890, with a stop loss at 1.5960 for a profit target of 1. 5650

Supports – 87.60 85.30 85.00
Resistances – 88.60 89.50 95.00
Price range – 85.00 – 89.50

Trading call

The US dollar extended its gains versus the yen to end the week higher by 2.45%, marking the eighth successive week of gains. The dollar also recorded a new 29- month high versus the Asian currency.

Expect some more upside in the currency pair to levels of 88.60- 89.50, which is the top end of the bullish long- term channel and a very crucial long- term resistance. Supports for the current uptrend are placed at 87.60 and 85.30, which is the lower end of the short term bullish channel.

Close above 89.50, the pair will begin a new rally with immediate targets of 95.00. However, expecting the YEN to regain some of its losses before the start of a fresh rally favouring the USD.

Near- term trend- Topped out
Medium and long term trend- Topping out
Short USD/JPY-

At 88.60 with a stop loss at 89.20 for a profit target of 85.50. At 89.50 with a stop loss at 90.25 for a profit target of 87.75.

Long USD/JPY-
At 90.25 with a stop loss at 89.25 for a profit target of 94.00