After some of the dust has settled since last week’s sharp, brief sell-off some initial ideas have formulated. These might begin to excite the bulls, but it is too early to draw conclusions yet.

The FX Specialist view

WEEKLY CHART

The recent sharp sell-off saw a test of the projected bear channel base before recovery was seen.

First main resistance here comes from the late 2009 84.81 low, and a push through this would be a bull sign.

DAILY CHART:

In the FX Specialist Guide we have wondered whether or not the sell-off amounted to a blow-off move, paving the way for a better recovery on this chart.

In these situations such sell-offs seem to begin near the future 38.2% retracement level...

S/term note initial resistance emerging from the area of the old rising support/return line and 23.6% level – the first positive sign would be a clear close through this, followed by further recovery through that 38.2% level.

Mark Sturdy
John Lewis

Seven Days Ahead
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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.

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