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Technical Cross
Written by article default Friday, 04 March 2011 18:51
Great British Pound vs. Japanese Yen (GBP / JPY)Midday Report
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The pair is presently touching the initial resistance areas of 76.4% Fibonacci retracement of the downside wave from 135.50 to 131.10 as seen on the secondary image. At the same time, the weekly chart shows how SMA 50 is being touched, while we write this report. Actually, it didn't show the move which argue us to change our mind and thus, we hold onto our morning predictions for the rest of the day. We remind you that, areas of 133.65 should be breached to activate this scenario.
The trading range for today is among key support at 131.60 and key resistance at 136.80.
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 | 133.65 | 133.15 | 132.50 | 131.65 |
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| Resistance | 135.00 | 135.50 | 136.20 | 136.80 | 137.30 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 133.65 targeting 131.05 and stop loss above 135.20 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Midday Report
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The pair is still consolidating around the neckline of the suggested head and shoulders bottom pattern at 115.60 zones as seen on the provided daily chart. We need to witness a daily closing above it to make sure that our captured Elliott sequence is efficient enough to send the pair higher within C wave to complete the sequence. Henceforth, we still prefer watching the price behavior around the neckline and today's closing to pinpoint the upcoming direction.
The trading range for today is among key support at 112.25 and key resistance now at 116.80.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 114.75 | 114.25 | 114.00 | 113.65 | 113.15 |
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| Resistance | 115.45 | 115.75 | 116.00 | 116.35 | 116.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Euro vs. Great British Pound (EUR / GBP)
Midday Report
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As we discussed this morning, the royal pair needs to relieve momentum indicators, represented by RSI 14 to continue its upside movements affected by the bullish harmonic "5-0" pattern. Once more, we look at the amazing reversal from 50% of BC leg as another proof that the "5-0" pattern is an efficient weapon within the harmonic trading arsenal since this Fibonacci level is the scientific potential reversal point of the "5-0" pattern, which was repected as well via reversing at 0.8455 levels. Thereby, we will be waiting for more upside actions towards the projected scientific technical target of the pattern at 161.8% of CD leg at 0.8670.
The trading range for today is among the key support at 0.8455 and key resistance now at 0.8700.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8545 | 0.8520 | 0.8500 | 0.8480 | 0.8455 |
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| Resistance | 0.8590 | 0.8605 | 0.8630 | 0.8670 | 0.8700 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8545 targeting 0.8670 and stop loss below 0.8455 might be appropriate. | ||||