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Technical Cross
Written by article default Friday, 13 May 2011 08:04
Morning Report
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The pair descended aggressively where it is currently trading below 88.6% Fibonacci retracement of CD leg of the bearish harmonic butterfly pattern which proved its efficiency during the past period. The negative signs on indicators weaken the full correctional level and thus, the door will be open for additional downside actions towards 127.2% Fibonacci projection of CD leg. To conclude, we hold onto the negative anticipations over intraday basis, noting that a break of 130.10 will bring panic selling pressures.
The trading range for today is among key support at 126.70 and key resistance at 134.80.
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 | 130.50 | 130.10 | 129.40 | 128.25 | 127.60 |
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| Resistance | 131.05 | 131.65 | 132.50 | 133.15 | 133.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 131.40 targeting 128.25 and stop loss above 133.65 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Coming below 50% Fibonacci retracement of XA leg is another bearish indication that the suggested harmonic Bat pattern will continue forming its CD leg as we discussed several times before. Stochastic is still negative despite moving within oversold areas, while Vortex reflects the strength of the bearish trend. Thereby, we keep our bearish outlook intact over intraday basis, protected by SMA 50 which acts as a ceiling for the present downside move.
The trading range for today is among key support at 111.05 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 | 114.25 | 113.60 | 113.10 | 112.80 | 112.40 |
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| Resistance | 114.75 | 115.25 | 115.75 | 116.20 | 116.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 114.75 targeting 112.10 and stop loss above 116.80 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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It seems that the market is retesting the previous broken 38.2% Fibonacci retracement level of CD leg of our caught bearish harmonic Gartley pattern at 0.8750 zones as seen on the provided chart. The negative signs continue appearing on indicators and thus, the bearishness might continue over intraday basis towards 61.8% retracement level at 0.8590-0.8580 zones. All what we need is a breakout below 0.8700 zones once more to solidify our constructive overview.
The trading range for today is among the key support at 0.8605 and key resistance now at 0.8890.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8730 | 0.8700 | 0.8680 | 0.8630 | 0.8605 |
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| Resistance | 0.8770 | 0.8795 | 0.8815 | 0.8830 | 0.8850 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8750 targeting 0.8590 and stop loss above 0.8860 might be appropriate. | ||||