03.05.201210:37 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for May 3, 2012

Long-term review

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The today's session is expected to give the USDX more upside room as we can see aton the daily chart that the instrument is trying to perform a consolidation above the resistance level of 99.19. At the moment, we expect a bullish pattern formation because we do not like how the USDX is doing the bullish rallies due to the overbought levels in the oscillators at lower time frames.

The solid bullish structure developed at the session on February 26 is still alive and the USDX is trying again to reach new historical highs. The immediate resistance is located at the psycological level of 100.00. In that zone we could see strong pullbacks in the near term, because the MACD indicator could be inside the overbought territory when the USDX is trading inside this price zone.

Daily chart's resistance levels: 99.19 / 100.49

Dailychart's support levels: 98.01 / 96.96

H1 chart's resistance levels: 99.13 / 100.00

H1 chart's support levels: 97.96 / 96.85

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 99.13, take profit is at 100.00, and stop loss is at 98.30.

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