*** Weekly Technical Analysis

EURO

After reaching the suggested target in our previous weekly report, the pair declined due to the overbought signs appearing on momentum indicators yet is still trading above the 10 day MA at 1.4935. We see that there is a possibility for a downside correction yet this correction is only to gather bullish momentum. The correction will be confirmed with the breach of 1.4965 and maintaining trading below it. The stochastic indicator is adjusting to the downside alongside the RSI.

The trading range for the week is among the key support at 1.4630 and the key resistance at 1.5460

Support 1.4935 1.4890 1.4810 1.4785 1.4715

Resistance 1.5060 1.5155 1.5220 1.5320 1.5380

Recommendation Based on the charts and explanations above, our opinion is selling the pair from 1.5035 to 1.4905 and stop loss above 1.5060 might be appropriate.

Forex - Weekly Technical Analysis ( 26 October – 1 November)

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GBP

Since the 26th of May the pair has been trading in a sideways channel between 1.5935 and 1.6600 where it failed to exit the channel several times. The stochastic indicator on the daily charts is adjusting to the downside whereas the RSI is assuring the bearishness yet the ADX is still pointing to the upside. The mixed signals are forcing us to wait for further confirmation on the intraday basis despite us favoring the decline.

The trading range for the week is among the key support at 1.4630 and the key resistance at 1.5460

Support 1.6270 1.6205 1.6145 1.6110 1.6060

Resistance 1.6380 1.6485 1.6600 1.6670 1.6740

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JPY

We see the pair was able to incline as we expected last week and maintain trading above the 38.2% correction at 91.70 which is confirming the uptrend towards the 50% and perhaps 61.8% correction at 92.85 and 94.00 respectively. On the other hand, we see overbought signs on momentum indicators which may result in high volatility this week and perhaps a downside correction yet as far as 90.30 is intact, the uptrend remains on the short term whereas 90.95 being intact will keep the uptrend on the intraday basis. Note that the medium term trend is to the downside and this is only a correction within a bearish channel.

The trading range for the week is among the key support at 88.85 and the key resistance at 95.40

Support 91.70 91.10 90.95 90.30 89.40

Resistance 92.40 92.90 93.60 94.00 95.40

Recommendation Based on the charts and explanations above, our opinion is buying the pair from 91.70 to 94.00 and stop loss below 90.30 might be appropriate.

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CHF

Trading remains within a downside channel on the medium term yet as we see in the above image we see the possibility of formation a bullish technical pattern (wedge) which may open the way for a temporary upside correction. The correction remains as far as 0.9990 is intact and will be confirmed with trading above 1.0130 which is where the 50 MA meets with the 23.6% correction. Despite our expectations for an incline this week, note that the medium term trend is still to the downside.

The trading range for the week is among the key support at 0.9835 and the key resistance at 1.0350

Support 1.0055 1.0000 0.9960 0.9915 0.9880

Resistance 1.0100 1.0130 1.0190 1.0240 1.0290

Recommendation Based on the charts and explanations above, our opinion is buying the pair from 1.0080 to 1.0240 and stop loss below 0.9960 might be appropriate.

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CAD

The pair inclined last week as we expected and we still see that the pair is in need to retest the key resistance for the bearish channel or the resistance level illustrated in the above image at the very least. We expect the correction to take the pair to levels between 1.0660 and 1.0720 as far as 1.0385 remains intact on the daily charts.

The trading range for the week is among the key support at 1.0100 and the key resistance at 1.0875

Support 1.0485 1.0370 1.0305 1.0295 1.0240

Resistance 1.0575 1.0660 1.0720 1.0790 1.0840

Recommendation Based on the charts and explanations above, our opinion is buying the pair from 1.0485 to 1.0660 and stop loss below 1.0305 might be appropriate.