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Technical Major Currencies
Written by article default Monday, 06 February 2012 07:32
Weekly Report 06/02 – 10/02/ 2012
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The pair has moved bearishly since the opening of the week where it came below SMA 50 over four-hour interval as seen on the secondary image. Over daily studies, the negativity continued appearing on Stochastic and OsMA and thus; the bearishness is still expected during this week. A break below 1.3070-1.3050 zones will accelerate declines softly targeting 1.2925 followed by 1.2870-1.2860. Our risk limit resides in the areas between 1.3340 and 1.3375 zones.
The trading range for this week is among key support at 1.2745 and key resistance at 1.3375.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 areas remain intact.
| Support | 1.3045 | 1.2975 | 1.2860 | 1.2810 | 1.2745 |
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| Resistance | 1.3110 | 1.3140 | 1.3200 | 1.3250 | 1.3375 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3140 targeting 1.2860 and stop loss above 1.3340 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 06/02 – 10/02/ 2012
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Cable started the week showing bearish tendency; whilst RSI 14 over four-hour interval succeeded in penetrating the value of 50.00 as seen on the graph. Actually, areas of 61.8% Fibonacci of the IM-impulsive- wave from 1.6165 to 1.5360 has played a big rule in sending the pair lower and thus; an important top might have been placed at 1.5880. But, we will not make sure that the bearishness of the third wave will dominate the market during this week unless we witness a sustained breakout below 1.5680 zones.
The trading range for this week is among key support at 1.5360 and key resistance at 1.6165.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.
| Support | 1.5730 | 1.5630 | 1.5555 | 1.5515 | 1.5420 |
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| Resistance | 1.5820 | 1.5880 | 1.5935 | 1.6000 | 1.6075 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5680 targeting 1.5390 and stop loss above 1.5880 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 06/02 – 10/02/ 2012
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Adopting a favorable reaction to our previous technical report, the Japanese yen has plummeted sharply against Greenback where we can see how the pair succeeded in clearing 76.4% Fibonacci of the entire upside rally from 75.50 to 79.50 zones. Momentum indicators continue showing positive signals while Vortex is on its way to overlap bullishly. Consequence, the bullish recovery may continue during this week. A break above 77.10 areas will accelerate the bullish wave mainly targeting 78.30 areas. On the downside, a break below 75.50 will negate our scenario.
The trading range for this week is among key support at 75.25 and key resistance now at 78.90.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.40 | 76.10 | 75.80 | 75.50 | 75.25 |
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| Resistance | 76.95 | 77.30 | 77.60 | 77.90 | 78.30 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.50 targeting 78.30 and stop loss below 75.45 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 06/02 – 10/02/ 2012
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One more positive closing above SMA 100 was achieved and now, the pair is hitting the middle line of Keltner channel suggesting that the bullishness will continue during this week. Moreover, Stochastic and RVI 14 are currently positive reinforcing our scenario. Ultimately, a breakout above 0.9225 will accelerate inclines as this level represents a neckline for a potential reversal classical pattern on the four-hour timescale. Conversely, areas of 0.9030 should hold to protect the positive scenario.
The trading range for this week is among key support at 0.8890 and key resistance at 0.9550.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 areas remain intact.
| Support | 0.9175 | 0.9140 | 0.9080 | 0.9045 | 0.8965 |
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| Resistance | 0.9260 | 0.9310 | 0.9360 | 0.9445 | 0.9500 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9175 targeting 0.9400 and stop loss below 0.9030 might be appropriate. | ||||
Canadian Dollar (CAD)
Weekly Report 06/02 – 10/02/ 2012
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After dropping on Friday to breach the support of the falling wedge formation shown on image, price rebounded again with the start of the week to trade within the formation, while MACD continues to provide a bullish divergence. We expected a rebound from 0.9950 levels on Friday, and we continue to hold onto our expectation for an upside correction this week as well, targeting initially the main resistance area below 1.0075. 0.9890 should remain intact for the bullish correction to remain valid.
The trading range for today is expected among the major support at 0.9890 and the major resistance at 1.0075.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
| Support | 0.9950 | 0.9925 | 0.9890 | 0.9870 | 0.9850 |
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| Resistance | 0.9960 | 0.9980 | 1.0010 | 1.0050 | 1.0075 |
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| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9930 targeting 1.0040 and 1.0075, stop loss below 0.9875. | ||||
Australian Dollar (AUD)
Weekly Report 06/02 – 10/02/ 2012
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The pair tested the critical resistance area around 1.0750 on Friday, in addition to the resistance of the ascending channel shown on image, while price is extensively overbought as seen on stochastic over daily basis. Therefore, we expect a downside correction this week while 1.0750-1.0800 should remain intact for the downside correction to remain possible.
The trading range for today is expected among the major support at 1.0500 and the major resistance at 1.0800
The short-term trend is to the upside targeting 1.1079 so long as 1.0130 remains intact.
| Support | 1.0680 | 1.0650 | 1.0610 | 1.0560 | 1.0525 |
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| Resistance | 1.0750 | 1.0785 | 1.0800 | 1.0820 | 1.0850 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair at 1.0750 targeting 1.0680 and 1.0550. Stop loss above 1.0800. | ||||
New Zealand Dollar (NZ)
Weekly Report 06/02 – 10/02/ 2012
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The pair has breached the short term ascending support (dotted brown line) after reversing from 0.8380 with the start of the week. RSI is clearly negative as it’s losing the bullish momentum while providing a bearish divergence; accordingly, we anticipate a four-hour closing below 0.8290 to expect further bearishness within the upcoming period,targeting levels around the support of the ascending channel shown on image.
The trading range for today is expected among the major support at 0.8200 and the major resistance at 0.8380
The short-term trend is to the upside, targeting 0.8840 as long 0.7600 remain intact.
| Support | 0.8300 | 0.8275 | 0.8250 | 0.8220 | 0.8200 |
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| Resistance | 0.8340 | 0.8380 | 0.8400 | 0.8425 | 0.8450 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair with four-hour closing below 0.8290 targeting 0.8215 and 0.8155 | ||||
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