EUR-USD Technical Anlalysis 2011.10.12

The Euro has rallied along with the stocks for the past week, breaking up the falling wedge pattern and aiming for the 1.3850-1.4000 resistance zone.

The retracement levels are measured for the month of September decline and, the previous main resistance was established by the 38.2% retracement.

The up-coming main resistance zone is set by the 50-61.8% area where the price may encounter strong bearish resistance.

Crude Oil (WTI) Technical Analysis 2011.10.11

Crude Oil is breaking down the channel

The Crude Oil prices rallied in the past week (including yesterday) in a bullish channel that now seems to be breaking.

This perfect up move in the channel, having no failures, is how an impulse wave should look like and a probable down move in the next hours will have a corrective function. The target is the $79.50-81.90 area and reversal signs at these prices may offer highly rewarding long position opportunities.

Crude Oil (WTI) Technical Analysis 2011.10.10

Crude Oil is oscillating in the main resistance zone

Crude Oil followed a bullish channel in the past few days in what seems to be a longer bullish move.

The T1 trend line was broke and has not been properly retested, signaling the power of the buyers. The prices are currently evolving in the main resistance zone and the upper border ($85.00 level) is a very strong level that has been tested along the previous months.

A break below the lower limit of the channel would set the market towards a further decline, targeting the $79.60 level. An intermediary support is set  at the $81.35 level. 

DAX Technical Analysis 2011.10.10

Rally is losing power

On the intraday chart (15min) of DAX we can spot a few signals of weakness in the up move we have witnessed last week:

1. T1 trend line was broken and retested - this price pattern is often formed at local tops/bottoms.
2. 5,750 resistance level was tested twice and the sellers overcame the buyers. The rally seems to lose its power.
3. Bearish divergence on RSI that usually forms at the end of an up-swing.   

In case of a further down move, the target zone is set between the 38.2 and 50% retracement (5,440-5,510).

On the 4 hour chart (below) DAX index has clearly formed a strong base that can lead to a longer rally in the next weeks. The main target for this possible rally is the 50% retracement area in the 6,340 zone. According to Elliott Wave theory, wave 2 (which is in progress) will develop in three ([a]-[b]-[c]) sub-waves.