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Technical Major Currencies
Written by article default Thursday, 10 March 2011 10:20
EuroMorning Report
The pair continues trading near the retest level at 1.3860, with signs of a bearish technical pattern starting to appear -neckline meets with 1.3860– causing more negative pressure on the pair. SMA 50 continues offering support for the pair and maintain chances for resuming the bullishness suggesting in our previous reports, but it is vital to remain cautious and observe the pair around the mentioned neckline where a breach will lead to the support level for the upside channel around 1.3780.
The trading range for today is among the key support at 1.3780 and the key resistance at 1.4000.
The short term trend is to the upside as far as the daily closing is above 1.2795 remains intact with targets at 1.5135.
| Support | 1.3860 | 1.3780 | 1.3715 | 1.3680 | 1.3610 |
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| Resistance | 1.3925 | 1.3980 | 1.4035 | 1.4085 | 1.4195 |
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| Recommendation | Based on the charts and explanation above our opinion is observing the pair’s movement to insure its upcoming direction. | ||||
Great British Pound (GBP)
Morning Report
The pair is returning to pressure the upside channel’s support level that ascended towards 1.6170 due to the negativity on Stochastic; therefore, the pair stabilized below this level and paved the way towards the start of a bearish correction over intraday basis. SMA 50 is negatively pressuring the pair and supporting the expected breach; therefore, we remain neutral while observing the pair’s movement and the four-hour closing around 1.6170, where returning to stabilize above this level will force the pair within the bullish trend once again.
The trading range for today is among the key support at 1.6000 and the key resistance at 1.6345.
| Support | 1.6090 | 1.6000 | 1.5960 | 1.5905 | 1.5855 |
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| Resistance | 1.6170 | 1.6210 | 1.6275 | 1.6345 | 1.6415 |
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| Recommendation | Based on the charts and explanation above our opinion is observing the pair’s movement to insure its upcoming direction. | ||||
Japanese Yen (JPY)
Morning Report
The pair continues trading within the narrow range controlling its movement since yesterday, while trading near the critical resistance around 83.05. Expectations of a bearish intraday trend remains valid, where the initial target is around 81.65, but note the importance of stability below 83.05 for the expectations to prevail.
The trading range for today is among the key support at 81.65 and the key resistance at 83.70.
| Support | 82.40 | 81.65 | 80.80 | 80.35 | 79.60 |
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| Resistance | 83.05 | 83.75 | 84.25 | 85.00 | 85.95 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 83.05 targeting 82.25 and stop loss above 83.70, might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The pair closed yesterday below the sideways range support around 0.9330, which is a sign for returning within the bearish short term intraday trend. On the other hand, Stochastic is showing clear positive signs that could cause some bullish bias pushing the pair to breach the highlighted level once again. The minor upside channel shown in the picture above is forming a continuous flag pattern, which favors the bearish trend. We expect a bearish intraday direction but note that the breach of 0.9330 and 0.9385 will weaken these expectations. The breach of 0.9265 is vital to activate the awaited downside target intially around 0.9100.
The trading range for today is among the key support at 0.9100 and the key resistance at 0.9430.
| Support | 0.9310 | 0.9265 | 0.9200 | 0.9150 | 0.9100 |
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| Resistance | 0.9330 | 0.9385 | 0.9430 | 0.9465 | 0.9525 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair below 0.9265 targeting 0.9100 and stop loss above 0.9330, might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
The positive momentum over four-hour basis pushed the pair to the upside to trade within the sideways range, but SMA 50 continues negatively pressuring it to form a strong resistance against the pair, alongside Stochastic gradually losing the positive momentum. These factors make us expect the bearish intraday trend to continue requiring first an hourly closing below the sideways range support around 0.9700. The breach of 0.9745 could push the pair to revisit the minor downside channel’s resistance around 0.9820.
The trading range for this week is among the key support at 0.9500 and the key resistance at 0.9850.
| Support | 0.9700 | 0.9665 | 0.9615 | 0.9550 | 0.9500 |
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| Resistance | 0.9745 | 0.9820 | 0.9850 | 0.9910 | 1.0000 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with an hourly closing below 0.9700 targeting 0.9600 and stop loss above 0.9745, might be appropriate. | ||||