Weekly Analysis By BOAFX Trading Signal Solutions


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What a down turn we had last week, a nice sizable trend that people were able to get their teeth into . The price has even dipped below the breakout point of the double bottom pattern that was witnessed between August and September. The coming week would suggest a bearish biased heading towards 0.9000 and September lows of 0.8900. However I would expect some retracement on the long candles that were experienced at the end of the week. I would expect to see a pull back to a strong support and resistance level of 0.9280 before heading south again.


The Euro has been reacting strongly to fundamentals with Mario Draghi giving some insight to the future of the ECB. The price has acted as if strong support levels were not even there and big swings in the market have made it difficult to pin point any entry prices. As it stands at time of writing 1.3557 I would expect to see a return to 1.3480 before continuing on a bullish trend. It doesn't seem to matter what Draghi says the currency keeps bounding back.


The signs are all around that the U.K. economy is improving yet we are still stuck in this huge 400 pip channel on the daily chart. The price is only 30 pips away from the top of the channel so it is time to ask yourself; is it going to break out this time or is it going to reverse again back to 16000. Think of it this way; if you enter the trade for a sell at the top of the channel then you can enter with a real small stop loss and with 250 pips to the target price then the ratio of risk to reward should make your decision.


The US dollar has been strengthening against the Canadian dollar since we hit lows in September 2012 which was 230 pips higher than the lows of July 2011. Although we failed to make a new high since July this year the fundamental data suggests that low inflation is causing the Canadian dollar to weaken. The price should expect to see a pull back to at least 1.0500 then a continuation of the bullish trend and hopefully a new quarterly high.


Again we are stuck with this long term support, However the development of the declining channel has outlined an optimistic sell scenario. The question now is whether or not to wait for new lows or get in off the bounce of the declining trend line.


The breakout of the symmetrical triangle has been a long time coming and we could see some new highs in the coming months. However the price should expect to see some reversal on the current position with support around the 100.53 level. Although a new high could see the immediate continuation of the bullish trend.