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Technical Cross
Written by article default Thursday, 19 May 2011 10:09
Morning Report
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Yesterday's daily closing was below 76.4% Fibonacci retracement of CD leg of our bearish harmonic butterfly pattern which we depend on to suggest resuming the downside move that started at 139.95 -D level-. Furthermore, the last four hour chart offered a bearish candlestick formation as seen on the secondary image. Thus, the extended targets of the bearish harmonic formation are still underway. A break of 131.05 will accelerate the expected downside move over intraday basis.
The trading range for today is among key support at 128.40 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 | 131.05 | 130.50 | 129.40 | 128.40 | 127.60 |
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| Resistance | 132.50 | 133.15 | 133.60 | 134.20 | 135.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.25 targeting 129.25 and stop loss above 134.45 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Fibonacci retracement of 38.2% is still protecting our previous suggested bearish predications as seen on the provided daily graph. In the interim, Stochastic is closer to overbought areas and therefore, we still believe that the CD leg of the suggested harmonic pattern will be completed over the coming period. Actually, we need a four-hour closing or rather a sustained breakout below 115.95-115.75 zones to make sure that the bearishness will continue. Conversely, a daily closing above the aforesaid 38.2% Fibonacci level will threaten our bearish anticipations.
The trading range for today is among key support at 113.60 and key resistance now at 118.65.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 115.75 | 115.25 | 114.75 | 114.25 | 113.60 |
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| Resistance | 116.90 | 117.30 | 117.75 | 118.00 | 118.65 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 115.95 targeting 113.80 and stop loss above 117.45 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The recorded low of 0.8655 represents 50% Fibonacci retracement of CD leg off our efficient Gartley pattern but the consecutive inclines this week may indicate that the bearishness has stopped there. Actually, we are not completely sure if the current upside move represents a change in the previous expected negative direction or it represents a correctional action before resuming the bearishness towards 61.8% of CD leg. When we look at the four hour chart, we will see correction behaviors and thereby, we prefer staying aside until a clearer sign appears to define the next move. A break of 61.8% retracement of the downside rally from 0.9040 to 0.8655 will be a positive sign.
The trading range for today is among the key support at 0.8700 and key resistance now at 0.8965.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8820 | 0.8780 | 0.8750 | 0.8715 | 0.8700 |
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| Resistance | 0.8850 | 0.8885 | 0.8900 | 0.8915 | 0.8965 |
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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. | ||||