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Technical Cross
Written by article default Friday, 20 May 2011 08:05
Morning Report
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The market is trapped within a very tight since yesterday but we notice that yesterday's closing was again below 76.4% Fibonacci retracement of CD leg of our bearish harmonic butterfly. In the interim, Stochastic is approaching overbought areas gradually and thus, we hold onto our negative predications over intraday basis where we believe that the extended technical targets of the pattern are still underway.
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 | 131.60 | 131.05 | 130.50 | 129.40 | 128.40 |
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| Resistance | 132.80 | 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 with a breakout below 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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One more negative closing below 38.2% Fibonacci retracement of XA leg of our suggested harmonic Bat formation was seen yesterday and therefore, we still see chances for resuming the construction of CD leg of the pattern. At the same time, Stochastic is entering overbought areas. Consequently, we hold onto our bearish anticipations over intraday basis. Conversely, we shouldn’t witness a daily closing above 117.30 areas.
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 | 116.20 | 115.75 | 115.25 | 114.75 | 114.25 |
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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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It seems that the royal pair is taking a rest after achieving violent fluctuations during this week but the factor that is worth mentioning is the contradiction between the negative signs on the smaller time frames; as when you open you four hour chart, we will see negative sign on momentum indicators, while the daily is positive. Thereby, we need more confirmations that the weekly chart will reach 61.8% of CD leg of the captured bearish Gratley pattern since it touched 50% during this week at 0.8660 zones earlier. To recap, we hold onto our neutrality over intraday basis until clearer signs appear to clarify the upcoming move.
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 | 0.8780 | 0.8750 | 0.8715 | 0.8700 | 0.8680 |
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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. | ||||