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Technical Major Currencies
Written by article default Wednesday, 18 May 2011 08:06
Morning Report
The pair consolidated above 1.4150 and approached retesting the breached support for the ascending channel, now resistance, at 1.4415. There are still mixed technical signals for the direction, where Stochastic supports the upside move and settling for the seen correction at 38.2% while SMA 50 is biased to the downside affected by trading outside the channel shown above. Therefore, we will observe the pair today and especially the daily closing around the critical levels mentioned to attain a clear signal for the coming move.
The trading range for today is among the major support at 1.3980 and the major resistance at 1.4455.
The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4215 | 1.4150 | 1.4105 | 1.4050 | 1.3980 |
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| Resistance | 1.4320 | 1.4360 | 1.4415 | 1.4455 | 1.4545 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
The pair is still fluctuating around the support for the broken ascending channel shown above, while the SMA 50 is pressuring the pair negatively. We have signs of a minor descending channel organizing the intraday downside move that recently started, and after reaching its support, the pair might move to its resistance around 1.6365 which will carry the pair into the main ascending channel once more. We remain neutral today and observe trading and the daily closing between the critical levels at 1.6265 and 1.6365.
The trading range for today is among the major support at 1.6110 and the major resistance at 1.6455.
The short term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6210 | 1.6160 | 1.6110 | 1.6045 | 1.6000 |
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| Resistance | 1.6265 | 1.6300 | 1.6365 | 1.6415 | 1.6455 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Japanese Yen (JPY)
Morning Report
The pair is stabilizing above the descending channel’s breached resistance mentioned in our previous reports, which signals the resumption of the current upside correction. We expect the pair to continue the intraday bullishness today that requires the clear breach of 81.75 and stability above 80.45.
The trading range for today is among the major support at 79.80 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 | 80.75 | 80.45 | 80.05 | 79.80 | 79.00 |
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| Resistance | 81.75 | 82.50 | 83.00 | 83.50 | 83.90 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with hourly closing above 81.75 targeting 83.50 and stop loss below 80.45 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair is fluctuating around the neckline mentioned yesterday for the bearish pattern at 0.8800, as the positivity on Stochastic is restricting the breach of this level. On the other hand, trading stabilized below the SMA 50 and accordingly we expect the downside move to continue today affected by the bearish pattern and trading within the main descending channel; targets start at 0.8650 and require stability below 0.8900.
The trading range for today is among the major support at 0.8650 and the major resistance at 0.8945.
The short term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8740 | 0.8650 | 0.8600 | 0.8550 | 0.8485 |
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| Resistance | 0.8800 | 0.8850 | 0.8900 | 0.8945 | 0.9000 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8800 targeting 0.8650 and stop loss above 0.8900 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair is currently trading around the retest for the breached neckline for the bullish pattern at 0.9710, as we can see Stochastic unloaded the negative momentum and trading within oversold areas. Therefore, we expect an intraday upside move today affected by the mentioned pattern, targeting areas at 0.9845, while the breach of 0.9710 will be the first signal that the pair settled for the seen upside correction towards 61.8% Fibonacci.
The trading range for today is among the major support at 0.9625 and the major resistance at 0.9915.
The short term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9710 | 0.9645 | 0.9610 | 0.9525 | 0.9500 |
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| Resistance | 0.9765 | 0.9845 | 0.9915 | 0.9970 | 1.0000 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with around 0.9710 targeting 0.9845 and stop loss below 0.9610 might be appropriate | ||||
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