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Technical Cross
Written by article default Friday, 06 May 2011 09:19
Morning Report
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In line with yesterday's midday report, the pair moved sharply downwards where it succeeded in closing below 76.4% Fibonacci of CD leg of the suggested bearish harmonic pattern. Classically, it needs to retest this broken level and also needs to retest the lower line of Keltner channel before the additional bearishness over intraday basisbased on the harmonic rules which propose an extended downside wave towards 100% Fibonacci level after this aforesaid breakout. Note that Stochastic might cause some kind of fluctuation but we don't believe that it will change the negative direction since the candlestick formations are definitely bearish.
The trading range for today is among key support at 128.60 and key resistance at 135.50.
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 | 131.60 | 131.05 | 130.50 | 130.00 | 129.40 |
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| Resistance | 132.40 | 133.15 | 133.60 | 134.20 | 135.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 130.00 and stop loss above 134.35 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The pair succeeded in reaching yesterday's suggested technical objective of 116.80 mentioned in the midday report easily via drawing a long black candlestick pattern. Furthermore, it achieved a negative closing below 38.2% Fibonacci retracement of XA rally and thus, B point is breached. Consequently, a potential Bat pattern might be in progress where the pair is currently forming its CD leg. Actually, yesterday's collapse sent the pair below SMA 50 and thus, more bearishness is awaited over intraday basis, noting that the suggested Elliott count discussed in the weekly report should be reconsidered.
The trading range for today is among key support at 114.25 and key resistance now at 120.50.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 116.80 | 116.25 | 115.60 | 114.75 | 114.25 |
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| Resistance | 117.30 | 118.30 | 118.65 | 119.10 | 120.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 117.50 targeting 115.25 and stop loss above 119.20 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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Yesterday's violent descend from 0.9040 zones which is very close to the previous discussed potential reversal zones of our captured Gartley pattern forces us to stay aside over intraday basis as we are not sure if 0.9040 replaced the PRZ or not. We mentioned that the PRZ was very close due to using the weekly basis to define this target which we anticipated since the pair was valued at 0.8500 zones. Anyway, if the pair succeeded in achieving a weekly closing above 0.8965 today, it will be able to retarget 0.9105-0.9110 zones once more to touch the ideal PRZ of the Gartley pattern -colored in blue- but if it couldn't we will treat 0.9040 as a replacement and we will define the targets of this reversal in the beginning of the next week. Dear reader, staying aside is a position.
The trading range for today is among the key support at 0.8780 and key resistance now at 0.9030.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8880 | 0.8850 | 0.8820 | 0.8800 | 0.8780 |
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| Resistance | 0.8915 | 0.8965 | 0.9000 | 0.9030 | 0.9070 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||