EUR-USD

This week hourly charts suggest an attempt of testing upper channel resistance around 1.4725-1.4740. Resistance at that level should push price lower to 1.4620 or 1.4570. Breaking below those levels would inspire new lows, however, if it holds, we should see a corrective upward recovery to 23.6 Fibonacci level (1.4913).

Trading signals:
Buy around 1.4625,
Take profit at 1.4890,
Place stop below 1.4460.

GBP-USD

The pair is extremely oversold. This week expecting minor correction to 1.8315-25; where 23.6 Fibonacci retracement level meets the most recent upswing. If breached, price may travel to 1.8350-60. Later new lows are expected.

Trading signals:
Preferred position – staying out.
Otherwise, Sell around 1.8340-60,
Let it run.
Place stop above 1.8360.

Truly yours,
Practical Trader

This entry was posted on Sunday, August 31st, 2008 at 4:12 pm and is filed under Weekly market comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.