Saturday, August 29, 2009

Weekly Report - Aug 31st to Sep 4th '09

As mentioned several times last week, 1032 seems to be a tough one to pass, with fallbacks on 1024 or lower around 1016 (again major energy levels are more or less 8 points apart on ES).
Difficult to give an accurate scenario as a retracement is quite possible if only to gather strength to go higher later on still. The weekly chart shows energy exhaustion like lower time frames, but seems nonetheless set on a course to a higher Fib level.
Volumes should pick up by 10% in the next couple of weeks, thus helping to resolve the current uncertainty.

TF: We note that while the long term scenario is the same, indications of a forthcoming retracement are more visible. TF could shed up to 16 points to 562. should erosion persist, we'll check the 568-570 area first.

EURUSD: in bounce territory at this level (1.428), but could well drop to 1.422. Longer term upside potential is definitely there still even though energy is slowly dissipating at the moment. Support at 1.422 may do the trick and allow EURUSD to rise again.

( posted Sat 11 AM UK )

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