(March 11, 2002) CURRENCIES: BRITISH POUND--Recent price volatility aside, it is clear that the long-term trend in the pound remains bearish and recent rallies have been failing at Fibonacci resistance levels. Fibonacci expansion analysis suggests that prices can go as low as 137.00 before stopping. I suggest traders make use of knowing weekly resistance levels and looking closely for sell signals as price rallies there.
CANADIAN DOLLAR: The daily and weekly trends in the Canadian Dollar are both bullish and prices are testing important Fibonacci resistance levels. I believe that this time prices are going to break above current resistance levels and head towards 6400 very soon. The Canadian Dollar is the least aggressive of all the currency markets and is the most appropriate for smaller traders.
EURO FX AND SWISS FRANC: In spite of recent market volatility the weekly
trends in both European currencies remains bearish. In the last issue I
wrote this about the European Currency markets..."The weekly trends
in both of these Euro currencies remain bearish with confluence resistance
levels hovering just above current market prices. Rallies to the 6015-6025
level in the Swiss Franc should be monitored closely for any signs of failures."
In spite of incredible market volatility, Fibonacci analysis came within
9 tics (this week's high in the Swiss was 6006) of picking the high of
the Swiss Franc before prices reversed sharply lower on Friday.
JAPANESE YEN: The daily and weekly trends in the yen are now both bullish and prices are racing higher. This week's high was initial weekly Fibonacci resistance so I am not surprised to see prices correct lower from there. However, since the trends are firmly bullish I did anticipate prices revisiting a breaking above recent highs. My longer-term projection is for the yen to reach the 8200 level in coming weeks.
