The FX Specialist view – After last year’s downmove support has remained above the early Nov low. Following a rebound and correction the chart still looks well-placed to produce another upleg, before any later resumption of the long term bear trend.
- MONTHLY CHART
In the FX Specialist Guide we have continued to note a positive RSI divergence, which questions the longer term bears’ resolve.
The major 1995 low just under 80.00 is so far providing support. - WEEKLY CHART
The downtrend in 2010 fell short of the projected bear channel base, the next support on this chart.
First resistance here comes from the late 2009 84.81 low – see also Daily chart, though. - DAILY CHART:
The breach of the bear channel top was a positive sign – note how the recent pullback found support from this old line, as well as the 76.4% retracement.
We have been viewing any dips as temporary and in the FX Specialist Guide continue to hold a bullish stance.
On the upside focus should be on the 85.86/93 area, 38.2% recovery and 16-Sep high. However, the more key, pivotal resistance area is 87.60/88.00, 50% recovery and old key support.
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