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Technical Cross
Written by article default Thursday, 10 March 2011 10:57
Great British Pound vs. Japanese Yen (GBP / JPY)Morning Report
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The subsidiary chart over four-hour basis explains the solidity of the resistance areas between 61.8% and 76.4% Fibonacci retracement levels; thereby, the bearishness is still in favor based on Fibonacci rules in addition to the negative signs on the weekly chart -main graph-. We recommend reviewing the weekly report for more details about these bearish signs, where a break of 133.60 is needed to accelerate the highly anticipated bearishness.
The trading range for today is among key support at 131.05 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 | 133.60 | 133.15 | 132.50 | 132.00 | 131.60 |
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| Resistance | 134.20 | 135.00 | 135.50 | 136.20 | 136.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 133.60 targeting 131.05 and stop loss above 135.50 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The pair is trapped within a very tight range since the opening of this week due to facing the cluster resistance around 115.45-115.60 zones; therefore, we still see chances for potential downside recovery over intraday basis based on the negative divergence appearing obviously on the daily graph. A breakout below 114.75-114.70 areas is urgently required to confirm this downside wave. Conversely, a break of 115.60 will activate the potential head and shoulders bottom pattern since the aforesaid areas represent the neckline of this pattern. That is why we should make sure that any breakout below 114.70 zones is not a false breakout.
The trading range for today is among key support at 112.80 and key resistance now at 116.35.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 114.25 | 113.65 | 113.15 | 112.80 | 112.40 |
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| Resistance | 115.25 | 115.75 | 116.00 | 116.35 | 116.70 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 114.70 targeting 112.80 and stop loss above 116.35 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair stabilized above SMA 50 -colored in red- while the first required sign of the two signs of AROON started to appear as AROON down penetrated the value of 70.00; suggesting that the correctional actions might have been limited. Thereby, we keep our positive scenario intact, where we believe that the pair is gathering the momentum it needs to reach the scientific technical targets of our previous discussed "5-0" pattern at 161.8% Fibonacci projection of CD leg at 0.8670. For more details about this harmonic structure we recommend reviewing the weekly report.
The trading range for today is among the key support at 0.8460 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 | 0.8560 | 0.8540 | 0.8520 | 0.8500 | 0.8475 |
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| Resistance | 0.8605 | 0.8635 | 08665 | 0.8700 | 0.8715 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8560 targeting 0.8670 and stop loss below 0.8490 might be appropriate. | ||||