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Daily Reports: Technical Cross 27/09/2010
Written by article default Monday, 27 September 2010 11:43
Great British Pound vs. Japanese Yen (GBP / YEN)Midday Report
The pair retraced mildly towards the support levels around 132.80, where it started to incline once more. It is still trapped within a very tight range and therefore, we believe that the correction for the upside rally from 127.60 to 135.00 might have ended around 38.2% Fibonacci as seen on the provided daily chart. Stochastic and RSI 14 are still supporting the suggested positive scenario.
The trading range for today is among key support at 130.50 and key resistance at 136.20.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support 133.15 132.50 132.00 131.60 130.50
Resistance 133.60 134.25 134.80 135.50 136.20
Recommendation Our weekly expectations remain valid.
Euro vs. Japanese Yen (EUR / YEN)
Midday Report
We are still waiting for the breakout above 113.60 zones to make sure that the harmonic structure has turned from a Bat pattern to a Crab pattern. Thus, we keep our technical speculation discussed in the weekly report unchanged for the rest of the day. On the other side, a breakout below 112.10 will be an indication that the overall bearish harmonic structure was completed already.
The trading range for today is among key support at 110.50 and key resistance now at 115.75.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support 113.15 112.80 112.10 111.60 111.05
Resistance 113.60 114.25 114.75 115.25 115.75
Recommendation Based on the charts and explanations above our opinion is, buying the pair with a breakout above 113.60 targeting 116.35 and stop loss below 111.60 might be appropriate.
Euro vs. Great British Pound (EUR / GBP)
Midday Report
The royal pair touched the awaited support levels around 0.8490, where we believe that the positive effect of the weekly duplicated harmonic pattern will start as the pair consolidated above 38.2% Fibonacci of the CD leg. Therefore, the path is cleared towards 61.8% Fibonacci at 0.8730, supported by AROON and RSI 14. To recap, we keep our positive suggestions for the rest of the day.
The trading range for today is among the key support at 0.8390 and key resistance now at 0.8605.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support 0.8480 0.8460 0.8420 0.8390 0.8360
Resistance 0.8530 0.8565 0.8585 0.8605 0.8630
Recommendation Our weekly expectations remain valid.