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Technical Cross
Written by article default Tuesday, 10 May 2011 08:28
Morning Report
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The pair is still consolidating between 76.4% and 88.6% Fibonacci retracement levels of the CD leg of our caught bearish harmonic butterfly pattern. The most impressive technical factor is that it continued trading below the lower line of Keltner channel which turned into a resistance for the current movements. Henceforth, we keep our bearish outlook intact over intraday basis, noting that a breakout below 88.6% Fibonacci level will weaken 100% Fibonacci at 130.10 clearing the path towards 127.2% Fibonacci projection of CD leg.
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 | 130.10 | 129.40 |
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| Resistance | 132.50 | 133.15 | 133.65 | 134.20 | 134.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.20 targeting 129.50 and stop loss above 134.25 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Inline with the suggested bearishness, the pair slipped from the detected pivotal resistance areas around 116.50 as seen on the provided daily chart. These aforesaid declines assisted the pair to touch 50% Fibonacci retracement of XA leg and now, more negative actions are awaited over intraday basis based on the continuation candlestick pattern that might help it breach through 50% level. Our Bat pattern is still forming its CD leg until now; whilst SMA 50 became our ceiling. Additionally, Vortex indicator is negative but be careful since Stochastic may cause fluctuations to be relaxed.
The trading range for today is among key support at 112.80 and key resistance now at 117.75.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 114.75 | 114.25 | 113.60 | 113.10 | 112.80 |
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| Resistance | 115.75 | 116.30 | 116.80 | 117.30 | 117.75 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.40 targeting 113.10 and stop loss above 117.15 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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Yesterday's defined initial resistance between 0.8810 and 0.8820 forced the pair to move violently downwards once more. Now, the pair is hovering around 38.2% Fibonacci of CD leg of our captured bearish harmonic Gartley pattern -blue pattern- and in the interim, the bearish sign continued on Stochastic. Thereby, we see chances for additional bearishness over intraday basis towards 61.8% -the second technical target of the bearish harmonic pattern- at 0.8590-0.8580 zones. Meanwhile, we should be aware that there will be a technical obstacle around 0.8660 zones where 50% retracement of CD leg exists.
The trading range for today is among the key support at 0.8605 and key resistance now at 0.8870.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8715 | 0.8700 | 0.8680 | 0.8630 | 0.8605 |
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| Resistance | 0.8780 | 0.8800 | 0.8820 | 0.8850 | 0.8870 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8750 targeting 0.8630 and stop loss above 0.8840 might be appropriate. | ||||