GBPUSD might be forming a cycle top at 1.4609 level on 4-hour chart and the fall from 1.4609 could possibly be resumption of downtrend from 1.5522 (Apr 15 high). Another fall to test 1.4230 would more likely be seen later today, a breakdown below this level could signal resumption of downtrend. Resistance is at 1.4609, only rise above this level will indicate that lengthier consolidation is underway.
Archive for May, 2010
Being supported by 1.2144 previous low, EURUSD bounced from 1.2153, taking price back to a trading range between1.2144 and 1.2671. Lengthier sideways consolidation in the range is expected in next several days. As long as 1.2671 resistance holds, another fall to 1.1800 is still possible and a breakdown below 1.2144 could signal resumption of downtrend.
By Elliott Wave International
The famous "10% correction" that market pundits talk about sounds so nice and tidy, so predictable and tolerable. It’s as if this "cute little correction" came neatly wrapped, looked like an M&M candy character, and smiled at you and your family after you open the box.
USDCHF remains in uptrend from 1.0501 (Feb 14 low), and the fall from 1.1695 is treated as consolidation of uptrend. Range trading between 1.1424 and 1.1695 would more likely be seen in a couple of days. As long as 1.1424 support holds, we would expect uptrend to resume and another rise to 1.1800 is possible. However, a breakdown below 1.1424 level will indicate that the rise from 1.0501 has completed at 1.1695 already, then deeper decline could be seen to 1.1300 area.
Robert Prechter discussed the recent global sell-off that has sent all major U.S. averages 10% below their 2010 highs with Yahoo! Finance Tech Ticker host Aaron Task on May 20, 2010. Prechter says that the current climate shows that "we’re in a wave of recognition" where the fundamentals are catching up to the technicals and that it’s time to prepare for a "long way down."
For more information from Robert Prechter, download a FREE 10-page issue of the Elliott Wave Theorist. It challenges current recovery hype with hard facts, independent analysis, and insightful charts. You’ll find out why the worst is NOT over and what you can do to safeguard your financial future.
Being contained by 1.2144 support, EURUSD rebounded from 1.2178. Range trading between 1.2144 and 1.2671 is expected in a couple of days. As long as 1.2671 resistance holds, the price action in the trading range is treated as consolidation of downtrend from 1.3691 (Apr 12 high) and another fall to 1.1800 is possible after consolidation. However, a break above 1.2671 resistance will indicate that the fall from 1.3691 has completed at 1.2144 already, then the following uptrend could bring price to 1.3000 area.
USDCHF continues its upward movement from 1.0923 and the rise extends to as high as 1.1620 level. As long as the trend line support holds, further rally is still possible and next target would be at 1.1800 area. However, a clear break below the trend line support will indicate that the rise from 1.0923 has completed, then pullback to 1.1300-1.1400 area could be seen.
After breaking above 1.0735 previous high, USDCAD pulled back from 1.0749, suggesting that a cycle top is being formed on 4-hour chart. Sideways movement would more likely be seen in a couple of days. Support is at the rising trend line from 1.0110 to 1.0246. As long as the trend line support holds, the price action from 1.0749 is treated as consolidation of uptrend from 1.0110, and one more rise towards 1.0850 resistance is still possible, however, a clear break below the trend line support will indicate that the rise from 1.0110 has completed at 1.0749 already, then another fall towards 0.9930 (Apr 21 low) could be seen.
By Elliott Wave International
As the world’s leading stock markets continue to play stomach-hockey with investors via one triple-digit turn after another, the mainstream community takes solace in this core belief: No matter how uncertain things become, the Federal Reserve can at any moment swoop in to set the economy right.
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