Candlesticks Weekly




The single currency found renewed buying interest at 132.05 late last week and has staged a strong rebound, the breach of previous resistance at 134.50 confirms recent upmove has resumed and upside bias is seen for this move to extend further gain to 135.00, then 135.50-60, however, near term overbought condition should prevent sharp move beyond 136.00-10 and price should falter below

Although the British pound fell marginally to 1.3302 late last week, the subsequent rebound suggests further consolidation would b seen and test of 1.3420 cannot be ruled out, however, a daily close above resistance at 1.3466 is needed to signal the pullback from 1.3550 has ended and bring further gain to 1.3500, then retest of 1.3550. Only a break above this recent high would abort and signal the rise from 1.3027 has resumed

Although the greenback slipped again late last week and fell to 0.9835 (a long position was entered), as this move from 0.9978 is still viewed as retracement of early rise form 0.9735, reckon downside would be limited and bring rebound later, above the Tenkan-Sen (now at 0.9908) would bring test of resistance at 0.9935 but break there is needed to signal the retreat from 0.9978 has ended, bring test of

Although the single currency met resistance at 1.1863 last week and retreated, as euro continued finding support just above last week’s low at 1.1717 and recovered, suggesting further consolidation would be seen and another bounce to 1.1830-35 cannot be ruled out, however, said resistance at 1.1863 should hold, bring another decline later

Although the greenback continued meeting resistance around 113.75 (two consecutive doji stars were formed on the daily chart) and retreated quite sharply (a long black candlestick was formed as well), as long as indicated support at 111.99 holds, further consolidation would be seen and mild upside bias remains for another rebound, above 113.30 would bring another test of 113.75 but




Despite rebounding to 133.89 earlier this week, euro met renewed selling interest there and has dropped quite sharply yesterday, dampening our bullishness and downside risk remains for weakness to 131.99 support, break there would signal top has been formed at 134.38 earlier this month, bring test of support 131.72. Looking ahead, a drop below 131.72 would signal the rebound from 131.17 has ended, bring weakness to

Although the British pound found support at 1.3303 and has staged a strong rebound, if our view that a temporary top formed at 1.3550 is correct, upside would be limited to 1.3490-00 and price should falter well below said recent high, bring another retreat, below 1.3340-45 would bring retest of 1.3303 but break there is needed to add credence to this view and extend the corrective fall from 1.3550 for weakness to

As the greenback found good support at 0.9735 earlier this month and has staged a strong rebound, adding credence to our view that low has possibly been formed there and consolidation with mild upside bias is seen for another test of resistance area at 0.9978-87, however, above there is needed to signal the fall from 1.0039 has ended at 0.9735, bring test of

Although the single currency fell to as low as 1.1730 late last week, the quick rebound from there suggests consolidation above this level would be seen and initial upside risk remains for another bounce to the Tenkan-Sen (now at 1.1835), however, reckon resistance at 1.1877-79 would limit upside and bring another decline later, below said support at 1.1730 would signal the fall from 1.1961 top is still in progress and

Although the greenback retreated initially last week, renewed buying interest did emerge at 111.99 (we recommended to buy at 112.10 and a long position was entered) and dollar has rallied from there since, adding credence to our bullish view that low has been formed at 110.84 last month and upside bias remains for this move to extend further gain to




Although the single currency retreated after early anticipated rally to 134.38, as euro found good support at 132.26 and has rebounded, retaining our bullishness and consolidation with mild upside bias is seen for gain to 134.00 but break of indicated resistance at 134.50 is needed to confirm recent upmove has resumed and extend gain to 135.00, however, near term overbought condition should limit upside to

Although the British pound rose to as high as 1.3550 late last week, the subsequent retreat from there suggest top is possibly formed there and consolidation with mild downside bias is seen for weakness to the Kijun-Sen (now at 1.3295), however, a daily close below support at 1.3221 is needed to add credence to this view, bring further fall to 1.3185-90  and later towards

Although the single currency rebounded to 1.1940, renewed selling interest emerged there and euro has slipped again, suggesting further consolidation below recent high of 1.1961 would be seen and test of the Kijun-Sen (now at 1.1758) cannot be ruled out, however, a daily close below support at 1.1713 is needed to signal the rebound from 1.1554 has ended, bring further fall to

The greenback only slipped to as low as 0.9735 last week before staging the anticipated rebound (we recommended in our previous update to buy at 0.9730 and just missed our long entry), suggesting consolidation above this level would be seen and test of the Kijun-Sen (now at 0.9887) is likely, however, a sustained breach above this level is needed to signal low has been formed there, bring a stronger rebound to

Although the greenback retreated on Friday to 111.41, as dollar found decent demand there and has rallied (the pair opened higher this week), suggesting the rise from 110.84 is still in progress, hence mild upside bias is for this move to extend further gain to 113.30-35, then test of resistance at 113.91, however, a daily close above this level is needed to retain bullishness and confirm the fall from 114.74 has ended

Although the single currency did drop earlier this month from 133.89 to our indicated downside target at 131.70 (our short position entered at 133.70 met target at 131.70 with 200 points profit), as euro found good support at 131.17 and staged a strong rebound, suggesting early correction from 134.50 top has ended there and consolidation with upside bias is seen for retest of this level

The British pound only retreated to 1.3221 (we recommended to buy at 1.3200 and missed the long entry) before finding renewed buying interest and the subsequent rally above previous resistance at 1.3338 adds credence to our view that the erratic rise from 1.3027 low is still in progress and upside bias remains for this move to extend gain to

Although the greenback recovered after falling to 0.9778 earlier this week, reckon upside would be limited to the Tenkan-Sen (now at 0.9863) and the Kijun-Sen (now at 0.9909) should remain intact, bring another decline later. Below said support at 0.9778 would extend the corrective decline from 1.0039 towards support at 0.9737 but reckon 0.9700 would hold and bring rebound later.

Although the greenback dropped to as low as 111.07 late last week, the subsequent recovery suggests consolidation above this level would be seen and corrective bounce to the Tenkan-Sen (now at 112.29) is likely, however, reckon upside would be limited to the Kijun-Sen (now at 112.91) and bring another decline later, below said support would add credence to our view that temporary top has been formed

The British pound has surged again this week, suggesting the erratic rise from 1.3039 is still in progress and consolidation with mild upside bias remains, a daily close above 1.3338 resistance would confirm low has been formed at 1.3027 earlier, bring subsequent rise to 1.3400, then test of previous resistance at 1.3455, however, near term overbought condition should prevent sharp move beyond

Although the greenback found renewed buying interest at 0.9846 and recovered, reckon upside would be limited to 0.9985-90 and near term downside risk remains for the retreat from 1.0039 temporary top to bring another corrective decline, below said support at 0.9846 would extend weakness to 0.9800-05, however, reckon support at 0.9737 would hold and bring rebound later.

Last week’s stronger-than-expected rebound suggests low has been formed at 1.1554 earlier this month (with a hammer candlestick reversal pattern on the daily chart) and consolidation with upside bias is seen for gain towards resistance at 1.1880, however, a daily close above there is needed to retain bullishness and signal the correction from 1.2093 high has indeed ended at 1.1554, bring further rise to

Although the greenback rebounded initially to 113.91, dollar had met heavy selling pressure there and dropped quite sharply since, dampening our bullishness and suggesting a temporary top has been formed at 114.74, hence consolidation with mild downside bias is seen for test of previous support at 111.65, however, break there is needed to retain bearishness and extend the fall from 114.74 top for

Although the single currency found support at 131.40 earlier this month and rebounded, as 133.89 capped euro’s upside and the pair has retreated, retaining our view that further consolidation below recent high of 134.50  (formed last month) would take place and mild downside bias remains for another retreat to 132.00, then test of said support at 131.40

The British pound has remained confined within recent established range and further choppy trading is in store, although another corrective bounce to 1.3220-30 cannot be ruled out, outlook remains consolidative, reckon upside would be limited to 1.3285-90 and previous resistance at 1.3338 should hold from here, bring retreat later. Only a break of indicated previous resistance at 1.3338 would shift risk to the upside and signal

As the single currency has rebounded after falling to 1.1554 (with a hammer candlestick reversal pattern on the daily chart), suggesting consolidation above this level would be seen and recovery to the Kijun-Sen (now at 1.1717) cannot be ruled out, however, reckon previous support at 1.1725 would limit upside and bring another decline later, below said support at 1.1554 would extend the fall from 1.2093 top to

The single currency found support at 1.1554 early last week and has rebounded, suggesting consolidation above this level would be seen and corrective bounce to 1.1691 resistance cannot be ruled out, however, still reckon previous support at 1.1725 would cap upside and bring another decline later, below said support at 1.1554 would signal the fall from 1.2093 top is still in progress for retracement of recent upmove to

Although the greenback retreated after rising to 114.74 last week and consolidation below this level would be seen, reckon support at 112.96 would limit downside and bring rebound later, above 114.05-10 would signal the retreat from 114.74 has ended, bring retest of this level, break there would add credence to the view that the fall from 118.66 has ended and extend the rise from 107.32 to

Aussie has remained under pressure after recent anticipated selloff, adding credence to our bearish view that recent fall from 0.8125 top has resumed and downside bias remains for further weakness to 0.7600, then 0.7560-70, however, as this move is still viewed as retracement of early upmove, reckon downside would be limited to

Despite falling to 1.3039 late last week, as the British pound recovered after holding above previous support at 1.3027, suggesting recent fall from 1.3658 top is not ready to resume yet and further consolidation above said support level is in store, hence another bounce to 1.3178 cannot be ruled out, however, as outlook remains consolidative, reckon upside would be limited to 1.3295-00 and price should falter below