Forex Technical Update August 24, 2010
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Multiple Time-Frame Analysis GBP/JPY Points to 119
- Week: This week continues to see strengthening in the Japanese Yen. The anticipated support for the GBP/JPY pair has been broken, and a strong decline can be expected.
- We can see the counter-trend breakout in the weekly chart. A swing projection of the previous downswing targets 119.00 the low in 2009.
- Day: The daily chart shows today's action as the trigger and confirmation for the bearish outlook.
- The first near-term target may be 126. This is the 61.8% expansion of the previous swing. This may be where the market needs a breather before extending the decline to 100% of the previous swing.
- One scenario that may weaken this outlook is if today's price action closes above 130.50 area by the end of the US session.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.