ftu_071410_eurusd

  • Daily and 1H: The daily chart shows a continuation pattern right at the channel resistance. This type of market action means that the market actually is NOT respecting the channel.
  • Fibonacci expansion levels and retracement levels have confluence right above the 1.30 area.
  • That is the target for the current rally. We may be a bit overbought in the near-term, but I doubt there will be strong retracements. I am now switching from AB=CD pattern to C=150%A type, so again the target is near 1.30.

ftu_071410_gbpusdjpy

  • 4H: The 4H charts of GBP/USD and USD/JPY, we see that the greenback is weak across the board today. It lost against the CHF and commodity currencies as well.
  • This shows confirmation of greenback weakness so we can expect this to be an intermediate term move. This may be the trend for the rest of Q3.

  Fan Yang Currency Analyst Commodity Trading Advisor

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