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Technical Cross
Written by article default Tuesday, 24 May 2011 09:23
Morning Report
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The pair succeeded in achieving an obvious negative sign on Stochastic via overlapping negatively. Additionally, the harmonic formation on the indicator which we discussed yesterday was completed and thus, we hold onto our bearish predications over intraday basis based on the technical idea of resuming the extended technical objectives of our caught bearish harmonic butterfly pattern seen on the provided daily graph. A breakout below 131.05 will accelerate the suggested descending actions towards the next Fibonacci retracement level.
The trading range for today is among key support at 128.40 and key resistance at 134.20.
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 | 132.25 | 132.80 | 133.15 | 133.60 | 134.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 132.10 targeting 128.90 and stop loss above 134.25 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The pair is currently challenging 50% Fibonacci retracement of XA leg for our proposed harmonic Bat structure as seen on the provided daily chart. The negative sign on Stochastic argues us to keep our bearish predications intact over intraday basis where we believe that the CD leg of the pattern might be resumed sooner. A breakout below 114.25 will trigger a panic sell-off but on the other side, areas of 117.30 should hold to keep this scenario valid as well.
The trading range for today is among key support at 111.05 and key resistance now at 117.30.
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 | 114.00 | 113.60 | 113.15 | 112.80 |
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| Resistance | 115.25 | 115.75 | 116.30 | 116.80 | 117.30 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.30 targeting 112.90 and stop loss above 117.10 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair is still correcting the violent descending actions occurred on Friday but when we look at smaller timescales, we will notice that Stochastic has been taken to the overbought areas as seen on the secondary image. Thereby, potential downside movements could be witnessed over intraday basis retargeting 0.8655 followed by 0.8580 zones where 61.8% retracement of CD leg of our Grtley pattern located. The factor that is worth mentioning is the stability below 38.2% of CD leg at 0.8750 and accordingly, the next Fibonacci levels are under our technical microscope.
The trading range for today is among the key support at 0.8605 and key resistance now at 0.8850.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8700 | 0.8780 | 0.8655 | 0.8630 | 0.8605 |
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| Resistance | 0.8730 | 0.8780 | 0.8800 | 0.8820 | 0.8850 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8735 targeting 0.8585 and stop loss above 0.8835 might be appropriate. | ||||