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Daily Report: Technical Cross 22/10/2010
Written by article default Friday, 22 October 2010 03:06
Great British Pound vs. Japanese Yen (GBP / YEN)Midday Report
As we mentioned in our technical messages that the pair slipped below the key support level of 127.60 -the full correctional level of the rally from 127.60 to 135.00-. This decline confirmed that the CD leg of the AB=CD pattern is still in progress. AROON is definitely negative, supporting this bearish scenario which we keep it unchanged for the rest of the day.
The trading range for today is among key support at 125.00 and key resistance at 130.50.
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 127.00 126.70 125.50 125.00 124.55
Resistance 128.00 128.40 129.25 130.00 130.05
Recommendation Based on the charts and explanations above our opinion is, selling the pair around 127.90 targeting 125.50 and stop loss above 129.80 might be appropriate.
Euro vs. Japanese Yen (EUR / YEN)
Midday Report
The pair declined sharply during the previous session and all what we need now is breaching the key support levels around 112.40 to confirm the negative effect of the Diamond top pattern over four hour basis. SMA 50 and AROON indicators are supporting this negative scenario.
The trading range for today is among key support at 110.00 and key resistance now at 115.25.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
Support 112.40 112.10 111.90 111.60 111.05
Resistance 113.15 113.65 114.25 114.70 115.25
Recommendation Based on the charts and explanations above our opinion is, selling the pair with a breakout below 112.40 targeting 110.50 and stop loss above 113.70 might be appropriate.
Euro vs. Great British Pound (EUR / GBP)
Midday Report
The royal pair is trapped within a very narrow range since morning and this action could be seen as a consolidation to build a solid base to assist it breach the initial resistance level of 76.4% Fibonacci of the CD leg of the duplicated harmonic pattern. Therefore, we keep our morning speculations unchanged for the rest of the day. The weekly closing above the aforesaid levels could assist the pair to breach 0.8965 on its way towards 0.9150 zones.
The trading range for today is among the key support at 0.8730 and key resistance now at 0.8965.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
Support 0.8850 0.8820 0.8800 0.8770 0.8740
Resistance 0.8890 0.8915 0.8935 0.8965 0.9000
Recommendation Our morning expectations remain valid.