Best Financial Markets Analysis Article In this week’s FX Specialist Guide we had been looking closer for evidence of support, on the approach to 1.3000. However, in a sign of bears’ current strength, this level was quickly violated, calling for lower chart levels in what looks to be developing nicely into a second medium term bear leg.

The FX Trader’s view

WEEKLY CHART:

The drop back from 76.4% resistance has got a second wind – after trying to find support around the 61.8% pullback level the chart has ignored the 76.4% pullback.

In the bigger picture this is developing into the next
major medium/long term downleg from the 2008 peak.

The 1.2328 Oct-08 low is in the bears’ sights.

DAILY CHART:

Whilst the combined effect of the 76.4% pullback level and a Fibo projection amounted to zero, this just underlines the strength of the bears at present.

Next possible supports we can identify are the bear channel base projection around 1.2575 currently, already tested, and then two lower Fibo projections at 1.2500 and 1.2250, straddling the 1.2328 Oct-08 low.

Whether current weakness is a type of s/term bear blow-off move remains to be seen, but a recovery/close above the 1.3400 area is required to indicate a temporary recovery phase is under way.

Mark Sturdy
John Lewis

Seven Days Ahead
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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.

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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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