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Technical Major Currencies
Written by article default Wednesday, 04 May 2011 09:51
Morning Report
The pair is still trading sideways as shown above, while stability below the support of the minor ascending channel shown above signals more downside movement to stabilize on the first correction at 23.6% Fibonacci at 1.4725. The SMA 50 resides at the mentioned correction which provides more support and accordingly we expect an intraday upside move today targeting 1.5000 and require stability above 1.4725.
The trading range for today is among the major support at 1.4630 and the major resistance at 1.5000.
The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4785 | 1.4715 | 1.4650 | 1.4615 | 1.4580 |
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| Resistance | 1.4830 | 1.4880 | 1.4950 | 1.5000 | 1.5050 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4725 targeting 1.4880 and stop loss below 1.4615 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
Trading was caught among the 50% and 32.8% correction as shown above, where momentum indicators provided positive signs supporting the 50% correction at 1.6455 which might support the upside rebound. On the other hand, the SMA 50 is now a resistance against the pair which might restrict the return to the upside. Those factors might form a bearish technical pattern with the neckline at 1.6455 and accordingly we remain neutral and recommend observing trading today looking for more confirmations by watching the movement around 1.6455 support and 1.6590 resistance.
The trading range for today is among the major support at 1.6300 and the major resistance at 1.6655.
The short term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6455 | 1.6385 | 1.6360 | 1.6285 | 1.6250 |
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| Resistance | 1.6505 | 1.6525 | 1.6610 | 1.6675 | 1.6700 |
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| Recommendation | After closing the morning position and based on the charts and explanations above we recommend observing the pair for more confirmations | ||||
Japanese Yen (JPY)
Morning Report
The pair is trading around the retest areas mentioned in our previous reports at 80.75 and momentum indicators continue to offer positive support. Therefore, we expect the USD/JPY to move to the upside today targeting 82.25 and require stability above 80.75.
The trading range for today is among the major support at 79.80 and the major resistance at 83.50.
The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.75 | 80.25 | 79.80 | 79.00 | 78.40 |
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| Resistance | 81.50 | 82.25 | 82.50 | 83.00 | 83.50 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 80.75 targeting 82.25 and stop loss below 79.80 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair reached again 0.8625 which is the gateway for the pair to resume the suggested bearishness in our previous report. The pair is still affected by the negative pressure from SMA 50 and the completion of the symmetrical triangle shown above. We expect the pair to resume the intraday downside move today which requires the clear breach of 0.8625 and stability below 0.8745.
The trading range for today is among the major support at 0.8400 and the major resistance at 0.8730.
The short term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8625 | 0.8545 | 0.8485 | 0.8450 | 0.8400 |
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| Resistance | 0.8675 | 0.8730 | 0.8775 | 0.8820 | 0.8900 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with hourly closing below 0.8625 targeting 0.8485 and stop loss above 0.8730 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair is trading within the sideways range shadowed in yellow above, while approaching its resistance at 0.9575 accompanied by Stochastic moving towards overbought areas. Based on that, we expect the pair to resume the intraday bearishness today pressured by the SMA 50 and trading within the main descending channel. Targets start at 0.9400 and 0.9350 while the breach of 0.9575 will delay those targets.
The trading range for today is among the major support at 0.9270 and the major resistance at 0.9575.
The short term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9450 | 0.9400 | 0.9350 | 0.9300 | 0.9270 |
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| Resistance | 0.9575 | 0.9615 | 0.9650 | 0.9700 | 0.9795 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with hourly closing below 0.9450 targeting 0.9270 and stop loss above 0.9575 might be appropriate | ||||