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Technical Major Currencies
Written by article default Friday, 06 May 2011 09:11
Morning Report
The pair failed in activating yesterday’s bullish scenario and that caused strong decline for the pair as shown above. We can see that the pair reached 50% correction that resides with the support for the main ascending channel that organizes the current wave, also, momentum indicators are in oversold areas. Therefore, we see the likelihood for the upside rebound over intraday basis today targeting the retest of 1.4630 and then 1.4725, breaching 1.4525 will extend the downside correction.
The trading range for today is among the major support at 1.4330 and the major resistance at 1.4725.
The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4525 | 1.4470 | 1.4440 | 1.4385 | 1.4330 |
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| Resistance | 1.4630 | 1.4690 | 1.4725 | 1.4800 | 1.4860 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair with hourly closing above 1.4550 and take profit in two stages at 1.4630 and 1.4725 and stop loss below 1.4440 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
The pair breached the critical support at 1.6455 which completed the bearish pattern formation mentioned before. Therefore, we expect the pair to continue the intraday bearishness today targeting 76.4% Fibonacci correction at 1.6300 and then 1.6200 if the correction level was breached. We might witness some fluctuation and volatility to retest the breached neckline due to the positivity on momentum indicators, while breaching 1.6455 will fail the suggested downside move.
The trading range for today is among the major support at 1.6200 and the major resistance at 1.6575.
The short term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6385 | 1.6360 | 1.6300 | 1.6250 | 1.6200 |
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| Resistance | 1.6455 | 1.6525 | 1.6575 | 1.6610 | 1.6675 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.6455 targeting 1.6300 and stop loss above 1.6550 might be appropriate | ||||
Japanese Yen (JPY)
Morning Report
The pair ended yesterday below the resistance for the bearish channel which it returned to trade within. We expect the pair to move to the downside today supported by trading below SMA 50. Momentum indicators are positive that might keep the volatility valid around the resistance for sometime before gathering the needed bearish momentum to support the suggested downside move. Breaching areas of 80.60-75 weakens the expected downside move and will extend the upside correction.
The trading range for today is among the major support at 78.40 and the major resistance at 82.10.
The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 79.80 | 79.00 | 78.40 | 78.00 | 77.70 |
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| Resistance | 80.60 | 81.50 | 82.10 | 82.50 | 83.00 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 80.60 targeting 79.00 and stop loss above 81.80 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair breached the resistance for the minor descending channel shown above, yet on the other hand, the pair is fluctuating around the SMA 50 that is preventing the pair from moving further to the upside and supported by the negativity on momentum indicators. We will be neutral today and observe trading around the critical support, the retest for the breached channel at 0.8660 and the resistance at 0.8740.
The trading range for today is among the major support at 0.8450 and the major resistance at 0.8900.
The short term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8665 | 0.8625 | 0.8545 | 0.8485 | 0.8450 |
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| Resistance | 0.8740 | 0.8775 | 0.8820 | 0.8900 | 0.8950 |
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| Recommendation | Based on the charts and explanations above we remain neutral and recommend observing the pair around the mentioned areas for more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
The pair rushed to the upside breaching the resistance for the main descending channel and ended yesterday above it. This is a positive signal for the reversal of the intraday trend, yet trading the SMA 50 is strong resistance against the pair alongside the buying saturation on momentum indicators. Therefore, we will observe the pair today between the support of 0.9635 and resistance at 0.9710 as breaching the support will resume the downside move and breaching the resistance will complete the formation of the bullish pattern and extend the upside correction.
The trading range for today is among the major support at 0.9445 and the major resistance at 0.9845.
The short term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9635 | 0.9570 | 0.9500 | 0.9450 | 0.9400 |
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| Resistance | 0.9710 | 0.9770 | 0.9845 | 0.9915 | 0.9960 |
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| Recommendation | Based on the charts and explanations above we remain neutral and recommend observing the pair around the mentioned areas for more confirmations | ||||