Posts tagged ‘bearish’

February 19, 2012

USD/CAD Weekly Outlook

USD/CAD continued to engage in choppy sideway trading above 0.9926 last week. The development suggests that price actions from 0.9926 are merely consolidations. And with 1.0070 minor resistance intact, near term outlook remains bearish. Initial bias remains neutral this week and some more consolidation could be seen. But downside breakout is in favor and below 0.9926 should target 0.9891. Break there will also resume fall from 1.0656 towards 100% projection of 1.0656 to 0.9891 from 1.0522 at 0.9757. In any case, we’ll stay bearish as long as 1.0070 minor resistance holds.

In the bigger picture, a medium term bottom is in place at 0.9406 and price actions from there could either be consolidation to fall from 1.3063 or the third leg of the whole consolidation pattern from 2007 low of 0.9056. We’re favoring neither case for the moment. Firstly, we’d expect 0.9406 to hold for a while at least. Secondly, the eventual pattern of the price actions from 1.0656 would decide whether rebound from 0.9406 is going to extend higher, or USD/CAD is just gyrating in range. We’ll stay neutral first until the pattern from 1.0656 finishes.

In the longer term picture, there is no clear indication that the long term down trend from 2002 high of 1.6196 has reversed even though bullish convergence condition was seen in monthly MACD. Current development dampens the case that fall from 1.3063 is resuming the such down trend. But there is no change in the long term bearish view so far. A break of 0.9056 low is still anticipated after all the consolidative price actions complete.

February 16, 2012

GBP/USD Hardly Holding Above 1.564

On Wednesday Pound/Dollar traded within almost 70 pip range. The Cable depreciated from 1.5737 to 1.5669 yesterday, in converse with the positive Interbank sentiment at above +35%, closing the day at 1.5691. Today the British Pound descended slightly further down to 1.5658. On the 1 hour chart range trading is forming, while on the 3 hour chart the upward channel is on hold. First resistance is yesterday’s peak at 1.5737. Break above it should extend the bullish movement further towards 1.5861. The nearest support level is today’s bottom at 1.5658. Going bellow it should extend British Pound’s reduction further down towards next downward objective 1.5536. There are no major economic events for UK today. Quotes are moving just bellow the close 20 and 50 EMA on the 1 hour chart, indicating slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is negative and tranquil, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving over all light short signals.

Technical resistance levels: 1.5737 1.5861 1.6000
Technical support levels: 1.5658 1.5536 1.5400

February 10, 2012

GOLD Breaks its trendline

XAUSD has broken its ascending trendlin in 4 hours time frame,if it breaks 1709.5 where is the last bottom of bullish trend ,we can be hopefull to further downside move .then the first support area is 1672