Mourad El Keddani
Weekly Technical Levels:
Tip (s):
R3 and S3 are good indication for the maximum range for extremely volatile days but can be exceeded occasionally.Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 line.
In a strong trend, price will be low through a pivot point line and keep going.
If there is significant news to influence the market price may go straight through R1 or S1 and reach even R2 & R3 or S2 & S3.
Time Frame: H1.
Drag your Fibonacci retracement levels from the lower to the higher of the last week (24th - 28th of October, 2011) in order to determine low and high price.
Average = (Higher - Lower) / 2
Average = 1.4022
- Range was: 448 pips (upward).
- The value of 50% Fibonacci retracement levels is: 1.4022
- 1.3650 will be formed a new support.
- 1.4500 will be formed a new resistance.
- Volatility is 628.20 so the market has called for a high volatile.
- It should be noted that the price has still been trapped between 1.38 and 1.42.
Observation (s):
- If the strength of the trend for pair is an uptrend, then the strength of the currency: EUR is an uptrend and USD is a downtrend.
- Most of traders use the Fibonacci retracement to determine accurate psychology level of support and resistance.
- Volatility Formulas: Variation = Average * (Higher - Lower).
http://instaforex.com/forex_analysis/42659/?x=OUE
GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term uptrend from 116.91. Within this wave there are two subwaves (colored royal blue in the chart), and subwave B is still developing from 122.58. The targets of the downmove are Fibonacci retracements of 116.91-122.58, and expansions off 122.58-119.97-122.04, 122.04-120.93-121.97.
AUD/USD is developing wave A of medium term uptrend (colored light green in the chart). Within this wave there are A, B and C subwaves (colored royal blue in the chart), and subwave C is developing from 1.0117. Within the latter wave C there are 5 subwaves (colored orange red in the chart) with subwave 5 still developing from 1.0365. The targets above the current price are Fibonacci expansions off 0.9387-1.0371-1.0117, 1.0117-1.0353-1.0146, 1.0146-1.0298-1.0163, 1.0163-1.0424-1.0365.
AUD/USD is developing wave A of medium term uptrend (colored light green in the chart). Within this wave there are A, and B subwaves (colored royal blue in the chart), and subwave B is developing from 1.0371 against the uptrend. The targets of the downmove are Fibonacci retracements of 0.9865-1.0371, 0.9387-1.0371, and expansions off 1.0371-1.0117-1.0353.
On Friday, the euro, pound and Australian dollar managed to increase their recent highs. Across the Atlantic, Wall Street also managed to maintain their momentum, closing the week with a positive performance. While investors are still looking more cynical financial situation of Europe and point to unresolved problems, some investors are benefiting from the improvement in stock market values. The argument that trade short-term versus long-term trade is far from negligible and, for now, who were willing to take risks in the short term were able to make a profit. While still are several questions that could not be answered and the results are unclear future, starting commercial operations this week, risk appetite will remain at the forefront and will test the different ranges.
AUD/USD is developing wave A of medium term uptrend (colored light green in the chart). Within this wave there are A, B and C subwaves (colored magenta in the chart), with subwave C still developing from 0.9865. The targets of the upmove are Fibonacci retracements of 0.987-1.0014, and expansions off 0.9387-1.0014-0.9865, 0.9865-1.0231-1.0101.
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