Best Financial Markets Analysis Article After a good recovery last year, which still fell short of the major 2008 peak, the chart turned indecisive. One or two clues are appearing that suggest a period of weakness could now be seen.

The FX Specialist view

WEEKLY CHART

In the FX Specialist Guide we have been noting the rising support line that was running through the 0.7500 area.

A weak close on the week would see an initial break of this, when downside focus would turn to the 23.6% 0.7248 pullback level for potential support (but also see Daily chart).

DAILY CHART:

Good resistance had previously emerged from around the 0.7835 22-Nov high (near to a 76.4% bounce level, not shown).

The drop back from this has now seen a violation of the 0.7521 21-Jan low which provides a s/term negative sign. The 0.7329 16-Dec low could provide support, but more interesting could be the bear channel base projection just above 0.7200 now. Currently, s/term rallies should prove temporary.

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 techni44cal 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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