Best Financial Markets Analysis Article In early June a recovery attempt proved short-lived, with a new downtrend low made at the start of August. This was just above a long term 61.8% retracement level and support is emerging here. It is worth considering recovery possibilities now.

The FX Trader’s view

WEEKLY CHART:

The Jun/Jul bounce found clear resistance from near the 1.1759 Jan low.

Subsequent weakness has found support just above the 1.0585 61.8% retracement.

In the FX Trading Guide we have pointed out initial evidence of a positive divergence on the weekly RSI – are bears tiring?

DAILY CHART:

So far, the breach of the 1.0782 01-Jun low has proved short-lived.

Initial resistance has come from around a 38.2% bounce level –also note the 23.6% level of the whole 1.3063/1.0630 decline just above 1.1200.

A recovery through this would be s/term positive, and at least enough to put bears on the sidelines.

Ultimately a further recovery above the 1.1465 76.4% level would be needed to strongly suggest that a medium term recovery phase was underway.

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.

© 2009 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) 2005-2024 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.