Monday, November 16, 2009

Weekly Report - Nov 16th to 20th '09

We've seen ES testing October highs to probably aim at channel highs, at the strong 1125 resistance. Nothing new here...
Bullishness is still indicated there on both the 60mins and daily charts. Our target this week is probably more the 60mins strong resistance level near 1110. It isn't quite clear yet whether ES will push to 1125 as we know a pullback is already announced on the weekly chart.
TF is leading ES and while it is aiming at the 60mins Fib target near 592 or MM resistance on 594, that area is also a strong 61.8% resistance on the daily chart (~597). Since we have here as well the retracement announcement on the weekly chart, we look at the resistance area as a potential reversal point we will monitor closely. We do not change our longer term scenario for the time being.

EURUSD is short term bullish trying to break out the 61.8% fib retracement to aim to stall level (1.4894) and probably higher to resistance level (1.501). That target will however lead to some congestion. I mentioned last week a scenario given by our weekly chart whereby EURUSD would stay high (retracement potential is fading by the day...) probably until year's end or more likely early Jan. That outlook is still valid.

( posted 5:50 AM UK )