Best of the Week

The Yen and the Euro’s weakness

Currencies / Forex Trading Apr 09, 2010 - 06:17 AM GMT

The Technical Trader’s view:

WEEKLY CHART

The recent weakness of the Yen and strength of the Euro has been short-lived.

The block to further progress in chart terms has been the diagonal of a complex Head and Shoulders Top (or, indeed, the completion level of a Triple / Quadruple?) Top.

Note well the abrupt fall back from the close approach to that diagonal….

Now look closer.

DAILY CHART

Those critical levels are shown to much greater effect on this day chart.

This is the completion level resistance of the multiple Top.

This is the neckline of the complex Head and Shoulders Top.

Note well the minimum move implied by the Head and Shoulders Top - around 115.50.

DAILY CHART

A good measure of the force of the rejection of the 127 level has been the speed and unhesitating penetration of the support from the Prior Highs (in fact, the old neckline of a bull Euro Head and Shoulders Reversal) at 125.20/24.

The break of that support emphasizes the true weakness of the Euro.

We expect a test of the recent lows at 119.50 soon.

And on a break moves further still towards the 115.50 level…..

Mark Sturdy
John Lewis

Seven Days Ahead
Be sure to sign up for and receive these articles automatically at Market Updates

Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

© 2010 Copyright Seven Days Ahead - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Seven Days Ahead Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2013 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.