Majors Outlook ( 30 May - 03 Jun 2011 )

EUR/USD

Today's support: - (1.4185 -1.4150 sell zone) ,  1.4087 , 1.4013 , (1.3969 main ) , 1.3815 - 1.3750 , according to the charts above we should evaluate pair's activities inside (1.4185 - 1.4150) a break below this area is gonna add strong bearish momentum and would test 1.4087-1.4013 and may be 1.3969 a break to the last one would attack the area around 1.3850 (EMA200) on daily....

Today's resistance: - (1.4345 - 1.4366 buy zone (main) ) , a break would test 1.4440 ,the next level is 1.4587 then 1.4940...

 Bearish momentum on 4 H , and Bullish momentum on daily , the pair may test the area around EMA 200 on daily 1.3850 , then pullback strongly.....

 

Trend direction is downward , technical targets are around 1.3950 and 1.3750 , the trend will remain valid as long as stability is below 1.4350 , a break above this level would weak the bearish trend and may attack 1.4440 - 1.4590...

 

The trading range for this week probably would be between the support level 1.3900 and the resistance level 1.4600...

 

Recommendations : Upon the charts and the explanation above , my recommendation is selling the pair with a 4 hour closing below 1.4150 targeting 1.3820 and stop loss 1.4240 OR buying the pair with a daily closing above 1.4350 targeting 1.4600 , stop loss 1.4240...

 

 GBP/USD

According to the 4 hour , we have strong bullish breakout , but the pair is strongly overbought , so I assume a retracement to the nearest support area around 1.6400 - 1.6380  where it's recommended to evaluate pair's activities on 1 hour and 4 hour chart.....

The pair is supposed to re-bounce strongly from this area we have multiple support levels , the lower band of (B.band) , EMA50 , (1.6400 - 1.6380)...BUT

You should notice these points:

1- On 1 hour RSI(14) should be above 30 line , or wait for a break below 30 then a pullback above 30..

2- On 1 hour the pair should close above the lower band .

3- On 1 hour the pair should close above EMA 50...

4- On 4 hour , ADX trend line should be above 40 line...

Otherwise don't buy..or enter the market ....

 

Trend Direction is Upward , technical targets are around 1.6520 and 1.6750 , the trend will remain valid as long as stability is above 1.6360 , a daily close below this level may lead for a bearish correction toward 1.6150...

The trading range for this week probably would be between the support level 1.6300 and the resistance level 1.6700 ...

 

Support         1.6420    1.6320    1.6240    1.6210    1.6125
Resistance    1.6455    1.6520    1.6600    1.6610    1.6675

 

Recommendations: Upon the chart and the explanation posted above, my recommendation is buying the pair around 1.6360 targeting 1.6550 and stop loss 1.6240..

Best Regards

Haitham653

 

USD/CHF

 

The USDCHF continued its bearish move last Friday, break below 0.8555, the bias is bearish in nearest term testing 0.8400 - 0.8350. Immediate resistance at 0.8555. A clear break above that area would lead us to more bullish correction  but as long as the daily close is below 0.8655 the daily bias is bearish.....

This week I assume a retracement to the nearest resistance level 0.8535 - 0.8595 where it's recommended to evaluate pair's activities on 60 min chart ...once the the market falls , ride the trend ....

Note:

1- On 4 hour ADX trend line should be above 40 , RSI(14) is below 50..

2- On 1 hour RSI(14) is below 70...

Recommendations: Upon the chart and the explanation posted above, my recommendation is selling the pair around 0.8595  targeting 0.8400 and stop loss 0.8700

Best Regards

Haitham653

 

USD/JPY

Last Friday , the USD/JPY broke below the bullish trend line and the range area on daily , the bias is bearish in nearest term especially if price able to make a clear break below 80.85 testing 80.15 and 79.55, a break below this level would add strong bearish momentum ,and may attack 78.25 and 76.50,

add to that we are below EMA50 and EMA20 on daily...

 

Trend direction is Downward , chances of resuming the downside this week are strong as long as the daily close is below 81.20 a break above this level would take us again to the long side...

 

The trading range for this week probably would be between the support level 77.00 and the resistance level 82.00

 

Support: - 80.45 - 80.25 -  80.12  - 79.84 -  79.55 - 78.25 - 76.50

resistance: - 81.20 -  81.75 -  82.25 - 83.85 - 84.30 - 84.75 - 85.50

Recommendations : Upon the charts and the explanation above , my recommendation is selling the pair with a daily closing below 79.55  targeting 78.25 & 76.50 , stop loss 80.45

 

 AUD/USD

Last Friday ,The AUD/USD continued its bullish move and broke above the bearish trend line on the daily chart above ..

This break is a threat to the bearish outlook since the fall from the high 1.1010 especially if price able to make a clear break above 1.0740  retesting  1.0887 and 1.1010....

Otherwise a 4 hour close below 1.0625 would add strong bearish momentum and may test 1.0500 -1.0440...

Trend Direction is Downward (weak) , the trend will remain valid as long as stability is below 1.7040 , a daily close above this level would attack 1.0890 and 1.1010...

 

The trading range for this week probably would be between the support level 1.0500 and the resistance level 1.1010...

 

Recommendations : Upon the charts and the explanation above , my recommendation is   buying the pair with a daily closing above 1.0740 targeting 1.0890 and 1.1010 , stop loss 1.0605...

 

 

Best Regards

Haitham653

Views: 18

Tags: AUD/USD, EUR/USD, GBP/USD, USD/CHF, USD/JPY

Comment by Haitham653 on May 30, 2011 at 6:47pm

Check the EUR/USD 4 hour chart  above , MACD(12.26.9) Hidden Bearish Divergence ,one of the rare divergence(s)...

Check also the second chart ..you may like it...

1 hour close below 1.4150 would test 1.4010 level , a break to the last one would test 1.3870...

each level equal 140 pips.....

Comment by Haitham653 on May 30, 2011 at 10:54pm
GBP/USD....Signs of Hidden Bearish Divergence on Daily , not completed yet...

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