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Technical Cross
Written by article default Thursday, 17 February 2011 12:33
Great British Pound vs. Japanese Yen (GBP / JPY)Morning Report
The previously discussed retesting level at 134.20 succeeded in preventing the pair from achieving additional declines, where the pair rebounded due to the positive effect of momentum indicators and the support of SMA 50. These factors, besides trading within the bullish channelwhich is seen on the provided graph, force us to predicate more bullishness over intraday basis, targeting 136.50. Note that, a break of 134.20 may postpone this scenario and will take us towards 132.70 zones.
The trading range for today is among key support at 132.70 and key resistance at 137.50.
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 | 134.20 | 133.20 | 132.70 | 131.395 | 131.55 |
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| Resistance | 135.00 | 135.85 | 136.50 | 136.85 | 137.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 134.20 targeting 136.50 and stop loss below 133.20 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
Finally, the pair succeeded in achieving a daily closing above 76.4% of CD leg of the bullish bat pattern. This closing confirms the bullishness towards 88.6% of the same leg at 114.40 zones, which represents the horizontal harmonic resistance. In general, trading should remains above 112.80 over intraday basis and above 112.05 to keep the bullishness of the harmonic formation valid. Stochastic is positive despite of approaching overbought areas.
The trading range for today is among key support at 110.95 and key resistance now at 114.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 113.00 | 112.80 | 112.05 | 111.80 | 111.60 |
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| Resistance | 113.85 | 114.00 | 114.40 | 114.75 | 115.40 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 113.00 targeting 114.40 and stop loss with a four hour closing below 112.05 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
SMA 50 which is very close to the major resistance of the bearish trend forced the pair to move lower. This resistance confirms the negativity of the bearish harmonic structure; stochastic is showing a bearish sign, while RSI started to be relieved but generally where we believe that the bearishness may dominate the movements over intraday basis. Coming below 0.8410 will add further negative pressure on the pair, whilst areas of 0.8460 should hold to keep this scenario valid.
The trading range for today is among the key support at 0.8210 and key resistance now at 0.8505.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8410 | 0.8370 | 0.8330 | 0.8290 | 0.8245 |
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| Resistance | 0.8460 | 0.8480 | 0.8505 | 0.8540 | 0.8590 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8420 targeting 0.8245 and stop loss with a four closing above 0.8460 might be appropriate. | ||||