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Technical Major Currencies
Written by article default Wednesday, 06 April 2011 11:04
EuroMorning Report
The pair continues its bullish trend from the top previously recorded around 1.4280 due to support from SMA, which maintains trading within the upside channel shown above. Stochastic is showing negative signs that may cause some a minor bearish correction rebound, but in overall we can expect a bullish intraday direction that requires two main factors to prevail; one, a clear breach of 1.4280 and the second is stability above 1.4160.
The trading range for today is among the key support at 1.4160 and the key resistance at 1.4500.
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 | 1.4220 | 1.4160 | 1.4105 | 1.4050 | 1.4005 |
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| Resistance | 1.4280 | 1.4350 | 1.4440 | 1.4470 | 1.4500 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 1.4280 targeting 1.4440 and stop loss below 1.4160, might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
The pair continues its upside push as it nears the minor downside channel’s resistance, which formed a continuous flag pattern created by breaching the upside channel’s support level in order to bearishly correct according to the image above. Momentum indicators are showing overbought signs that may cause some bearishness; however, due to support from SMA, we expect to see more bullish intraday movement initially targeting 1.6530. Note that the breach of 1.6250 could postpone resuming the expected upside.
The trading range for today is among the key support at 1.6200 and the key resistance at 1.6530.
| Support | 1.6250 | 1.6200 | 1.6150 | 1.6110 | 1.6060 |
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| Resistance | 1.6360 | 1.6390 | 1.6450 | 1.6530 | 1.6595 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with an hourly closing above 1.6360 targeting 1.6530 and stop loss below 1.6250, might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The pair is trading near 50% Fibonacci correction shown in our daily chart above, accompanied by major overbought signs appearing through momentum indicators. This could force the pair to reverse to retest 84.50 – 83.90, but in overall stability above the previously broken downside channel’s resistance makes us expect more bullish correction that targets 87.85 next. Note that resuming these targets requires a breach of 50% Fibonacci around 85.65.
The trading range for today is among the key support at 83.90 and the key resistance at 87.85.
| Support | 85.00 | 84.50 | 83.90 | 83.50 | 83.00 |
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| Resistance | 85.65 | 85.95 | 86.30 | 86.90 | 87.35 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with an hourly closing above 85.65 targeting 87.35 and stop loss below 84.50, might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The pair found difficulty stability below critical support around 0.9235 due to support from SMA; although momentum indicators are showing negativity that make us expect a breach of the upside channel’s support level controlling intraday trading, shown in the image above around 0.9205 and then paves the way towards resuming the expected bearish intraday trend. Key targets start around 0.9105 then 0.9025, while achieving them requires stability below 0.9330.
The trading range for today is among the key support at 0.9025 and the key resistance at 0.9370.
| Support | 0.9205 | 0.9175 | 0.9105 | 0.9025 | 0.9000 |
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| Resistance | 0.9280 | 0.9330 | 0.9370 | 0.9415 | 0.9465 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with the breach of 0.9205 targeting 0.9025 and stop loss above 0.9330, might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
The pair maintains stability below critical support around 0.9665, which supports continuing the expected bearish intraday trend. This descend supports trading within the key downside channel, alongside the negative pressure offered by SMA; therefore, awaited targets start around 0.9500 then 0.9400 pointing out that the breach of 0.9665 could postpone resuming these expectations.
The trading range for today is among the key support at 0.9400 and the key resistance at 0.9760.
| Support | 0.9615 | 0.9550 | 0.9500 | 0.9470 | 0.9400 |
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| Resistance | 0.9665 | 0.9700 | 0.9760 | 0.9795 | 0.9865 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9665 targeting 0.9500 and stop loss above 0.9760, might be appropriate. | ||||