Murray Math Lines 12.07.2011 (GBP/JPY, USD/CHF, GOLD)

Analysis for July 12^th, 2011

GBP/JPY

The market resumed its downward movement, as we expected. After the price had broken the -2/8 level, the levels were redrawn. The main target now is the 0/8 level, which may be reached within several days.



At the H1 chart the market is at the 2/8 level. This level is quite weak, reverses hardly ever occur here. That’s why we should expect down-trend to continue its movement to the 0/8 level.

USD/CHF

The correction is supported by 4 hour Super Trend. The price has fixed itself above the 2/8 level, thus indicating that it will continue moving downwards. The forecast still remains in effect because Franc doesn’t respond to the movement changes of the other currency pairs.



The price has rebounded from both Super Trends’ lines, which is a good signal for the existing trend to continue. The price may fall to the -2/8 level, and the levels may be redrawn after that. Don’t forget to move stop into the black.

GOLD

GOLD resumed its movement inside the rising channel. The growth is supported by 4 hour Super Trend. If the price rebounds from this Super Trend, there will be a signal for up-trend to continue. The target for bulls is at the 7/8 or the 8/8 levels.



The lines at the H1 chart are the same as 4 hour time frame. We can see a local correction of the market, and after the correction is finished, the price will move upwards again. Current consolidation is a very good opportunity to start buying, the stop should be right below Super Trend.