Weekly review of three pairs | 07 February 2014

EUR/USD


Monthly chart: here is an active rolldown while ADX is calm. It increases strength of a possible support for 1.3106 (Bollinger's medium band) and the probability of bullish scenario.


Weekly review of three pairs


Weekly chart: test level is 1.3267 (bottom band). If buyers do not take active steps from there (and will get the price below specified price), their mid-range strategies will lose.


Weekly review of three pairs


Day chart: bearish wave is developing here. Bounce from 1.3267 is a more important task for bulls than enhancement of descending front down to 1.3105.


Weekly review of three pairs


Conclusion: main plan is to touch 1.3267 and start of euro growth in the direction of 1.3850.

Another option is to break support 1.3267 and even a deeper descend to 1.3105.


GBP/USD


Monthly chart:  ADX is close to trend value but it is still not there. Bollinger envelopes are based horizontally thereby increasing probability of trading in the flat range. In general, levels 1.5797 (support from the medium band) and 1.7064 (pivot) seem to be the levels of immediate interests. It means that the first one can give notable signs for purchases, whereas the second one – for sales.


Weekly review of three pairs


Weekly chart: the levels of a possible formation of bearish Over&Under are marked by red. Bulls are recommended not to allow this to happen. 1.6191 is the control level (Bollinger's medium band).


Weekly review of three pairs


Day chart:1.6311 is the local support for sellers which can also be used to determine market's sentiment.


Weekly review of three pairs


Conclusion: main plan is to bounce from  1.6311 and start of a new strong ascending wave to 1.70.

Another option is touching of 1.6191, formation of O&U and a further swing while such setup will be tried out (a preliminary entrance point for sales is 1.62, and if we take into account week's frame range, we can see a time-stretched case).


AUD/USD


Monthly chart: downtrend continues and bears have two targets of interest: 0.8066 and 0.6964.


Weekly review of three pairs


Weekly chart: a serious convergence of oscillator can precede at least upward correction. Perhaps, it will happen after  one more low will have been reached.


Weekly review of three pairs


Day chart: here we also note a convergence and necessity of correction.


Weekly review of three pairs


Conclusion: main scenario is to expect ascending correction. It seems, this correction is suggested by one more touch of new lows.

0.89 and 0.9171 could be the targets of an upward roll. Another option is to force new and new lows without a serious correction to take place.

Aleksey Panasenko
FreshForex Analyst
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