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Technical Major Currencies
Written by article default Thursday, 05 May 2011 08:41
Morning Report
Despite the strong upside rush yesterday, the breached support for the minor ascending channel -now a strong resistance- prevented the pair from extending the upside move as shown above. We can see the downside reversal provided Stochastic with more positivity over four-hour basis in addition to the support offered by the SMA 50 and therefore, we expect an intraday upside move today which requires the clear breach of 1.4960 and stability above 1.4725.
The trading range for today is among the major support at 1.4725 and the major resistance at 1.5100.
The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4860 | 1.4785 | 1.4715 | 1.4650 | 1.4615 |
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| Resistance | 1.4900 | 1.4960 | 1.5000 | 1.5050 | 1.5100 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair with hourly closing above 1.4960 targeting 1.5100 and stop loss below 1.4860 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
The pair is still caught among sensitive levels mentioned yesterday, as those levels will define the outlook for the intraday move for the pair. We have signs of a bearish pattern, yet the stability of 50% correction is a positive sign that might push the pair to the upside again. Accordingly, we remain neutral for today and observe the pair around the critical levels to see if the bearish pattern will be completed or it will breach the resistance ahead to continue the short term bullishness. Review yesterday’s reports for more details.
The trading range for today is among the major support at 1.6300 and the major resistance at 1.6800.
The short term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6505 | 1.6455 | 1.6385 | 1.6360 | 1.6285 |
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| Resistance | 1.6525 | 1.6610 | 1.6675 | 1.6700 | 1.6740 |
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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 attempting to retest 80.75 to return to the general downside move that temporarily was halted for the upside correction. Momentum indicators are still providing positive signs that keep the volatility and push the pair to the upside. We need to observe the pair for today, and especially the daily closing around the critical 80.75; a daily closing below this level is a strong signal for the end of the correction at 50% Fibonacci correction and the pair will resume the general bearishness.
The trading range for today is among the major support at 78.40 and the major resistance at 82.20.
The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.25 | 79.80 | 79.00 | 78.40 | 78.00 |
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| Resistance | 80.75 | 81.50 | 82.20 | 82.50 | 83.00 |
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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 | ||||
Swiss Franc (CHF)
Morning Report
The pair remained stable above the critical support at 0.8625 after fluctuating yesterday within a tight range which pressured Stochastic near overbought areas. Those facts alongside the minor descending channel shown above sustained by the SMA 50 support our expectations for an intraday downside move today targeting 0.8400 and require stability below 0.8700.
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 | 0.8545 | 0.8485 | 0.8450 | 0.8400 | 0.8360 |
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| Resistance | 0.8625 | 0.8675 | 0.8700 | 0.8775 | 0.8820 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8625 targeting 0.8485 and stop loss above 0.8725 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair continued to move to the upside yesterday affected by the positivity on Stochastic, that started to lose the upside momentum and approaching overbought areas. We have signs of a minor descending channel on the chart, where its resistance stopped the upside move. Therefore, we expect the pair to reverse to the downside over intraday basis todaytargeting 0.9400 then 0.9325. Our expectations require stability below 0.9645.
The trading range for today is among the major support at 0.9325 and the major resistance at 0.9700.
The short term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9500 | 0.9450 | 0.9400 | 0.9325 | 0.9270 |
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| Resistance | 0.9580 | 0.9615 | 0.9640 | 0.9700 | 0.9795 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9580 targeting 0.9400 and stop loss above 0.9640 might be appropriate | ||||