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Technical Major Currencies
Written by article default Monday, 09 May 2011 09:39
Weekly Report (May 09-13, 2011)
The pair declined sharply last week moving from the main ascending channel’s resistance to the support as shown above. This decline stopped at the support which resides with 76.4% correction alongside momentum indicators entering oversold areas. Therefore, we expect the pair to move in general to the upside this week targeting areas from 1.4640 then 1.4750 and require daily closing stability above 1.4320.
The trading range for this week is among the major support at 1.4150 and the major resistance at 1.4750.
The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4320 | 1.4270 | 1.4220 | 1.4150 | 1.4105 |
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| Resistance | 1.4410 | 1.4455 | 1.4540 | 1.4585 | 1.4640 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4320 targeting1.4545 and stop loss below 1.4220 might be appropriate this week | ||||
Great British Pound (GBP)
Weekly Report (May 09-13, 2011)
The pair is stable below the breached neckline for the bearish pattern mentioned previously, signaling the extension of the downside correction that might drive the pair to the main ascending channel’s support at 1.6210. At the same time, this downside move is a normal reaction for approaching the channel’s resistance and accordingly the reversal is ideal for price channel’s trading as it pressured momentum indictors now into oversold areas. We need to observe the pair closely when reaching the mentioned support as the upside reversal is possible to continue trading within the channel. Breaching areas of 1.6210 will extend the downside move, while breaching 1.6525 will be the first signal for the pair’s recovery.
The trading range for this week is among the major support at 1.6130 and the major resistance at 1.6720.
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 1.6210 and stop loss above 1.6575 might be appropriate this week | ||||
Japanese Yen (JPY)
Weekly Report (May 09-13, 2011)
The USD/JPY maintained the stability below the resistance for the main downside channel with weekly closing below it. This is a strong signal for a possible downside move this week supported by the negative pressure from the SMA 50 alongside Stochastic gradually unloading its positivity. Targets start from 78.40 while breaching 80.85 with stability above it delays the targets.
The trading range for this week is among the major support at 77.70 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 | 79.80 | 79.00 | 78.40 | 78.00 | 77.00 |
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| Resistance | 80.85 | 81.50 | 82.00 | 82.50 | 83.00 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 80.85 targeting 79.00 and stop loss above 82.00 might be appropriate this week | ||||
Swiss Franc (CHF)
Weekly Report (May 09-13, 2011)
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The pair was caught between 23.6% and 38.2% correction after breaching the resistance for the minor ascending channel shown above. The breach signals the possibility for the pair to extend the upside correction, yet on the other hand, momentum indicators are clearly within overbought areas which might negatively pressure the pair to return to the downside. Therefore, we need to observe the pair around the critical 0.8710 support and 0.8855 resistance.
The trading range for this week is among the major support at 0.8425 and the major resistance at 0.9025.
The short term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8710 | 0.8665 | 0.8625 | 0.8555 | 0.8485 |
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| Resistance | 0.8780 | 0.8855 | 0.8900 | 0.8940 | 0.9025 |
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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)
Weekly Report (May 09-13, 2011)
Despite last week’s closing above the downside channel’s resistance, trading is biased negatively to pressure the pair back to the downside, especially after finding strong resistance at 50% Fibonacci and the negative pressure from momentum indicators. Those facts support the bearishness, yet we have a possible bullish pattern formation with the proposed neckline at 0.9710 and accordingly we remain neutral and observe the pair around the critical neckline areas and the support at 0.9525 which if breached will negate the effect of the proposed bullish pattern.
The trading range for this week is among the major support at 0.9350 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 | 0.9570 | 0.9500 | 0.9445 | 0.9400 | 0.9350 |
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| Resistance | 0.9630 | 0.9710 | 0.9770 | 0.9845 | 0.9915 |
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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 | ||||