EURUSD 18.01.10-22.01.10
GBPUSD . EURJPY . USDCHF. Economic Calendar for the week
The year began ambiguous. After a fairly strong growth in its first week, at the end of last week a couple came down to 185 points, closing Friday session at 1.4385 marks. The fall was mainly due to the possibility of exit from the euro area of Greece. From a technical standpoint, the growth in the early years was just a correction from the December drop. The graph shows that the growth of the first trading session after the new year stood at at 38.2% levels of Fibonacci (red) from the December drop. At the same time we have a larger bull trend since June 2009. December bearish trend was stopped at 61.8% Fibonacci level (blue), so that the December motion can be considered as long as the correction of growth last year.
Next week we should expect the consolidation of the euro / dollar rate in the range 1.4210 (December low) - 1.4431 (23.6% red). Output prices are below 1.4210 support would indicate a bullish trend of the second half of last year, and could target the market towards 1.4000. If the price meets resistance in contact with 1.4285 (61.8% white) should be expected to increase with immediate resistance at the Fibonacci levels of 50% (blue) - 1.4450.
Based on the testimony of a technical indicator ADX , the bearish trend is rather weak. Also one should pay attention to the narrowing of the Bollinger band . This means that the output prices of the area bands at the time of closest approach can determine the direction of further movement. At present the price was stopped at the middle line in the upper zone of the bands. If the average line will be strong support for the first 2 days next week, the bearish market scenario is unlikely.
Recommendations:
- Sell to 1.4300, limiting losses, limiting losses 1.4445
- Buy from the level of 1.4285 to 1.4430-1.4450, 1.4210 limit losses
- Sell at the level of 1.4190 to 1.4000, 1.4290 limit losses
