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Technical Cross
Written by article default Thursday, 26 May 2011 09:40
Morning Report
The pair inclined slightly, trading within the same trading range between the 61.8% and 76.4% retracements of the CD leg of the butterfly harmonic pattern at 133.90 and 132.45 respectively; Stochastic is overbought , while ADX is exhausted, therefore, our previous negative expectations are still valid. Breaching 134.80 may delay the suggested move.
The trading range for today is among the major support at 128.40 and the major resistance at 134.20.
The short term trend is to the downside targeting 118.80 as far as 150.75 level remain intact.
| Support | 132.50 | 132.00 | 131.05 | 130.50 | 129.40 |
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| Resistance | 133.60 | 134.20 | 135.00 | 135.50 | 136.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with the breach of 132.25 targeting 128.90 and stop loss above 134.50 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
The pair is still trading within the same trading range between the 38.2% and 50.0% retracements of the XA leg of the bat harmonic pattern which is expected to complete around 108.40 levels. Despite that Stochastic is positive, while ADX tends to prove a descending channel where D- trades above D+. Therefore, we believe that the pair will move to the downside during the day, and the coming period.
The trading range for today is among the major support at 111.05 and the major resistance at 117.30
The short term trend is to the downside targeting 97.50 as far as 132.50 level remain intact.
| Support | 115.00 | 114.75 | 114.25 | 114.00 | 113.60 |
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| Resistance | 116.30 | 116.80 | 117.30 | 117.75 | 118.65 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.75 targeting 112.90 and stop loss above 117.10 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
The pair is trading negatively affected by the Gartley harmonic pattern that may be a reason for a new bigger harmonic formation. At the time being, Stochastic is oversold; nevertheless, the ADX is showing a sign of weakness as it's starting to turn downwards. The downside move is in favor, and the harmonic formation mentioned above supports testing 0.8570 level and the first extension at 0.8460, the levels are the 61.8% and 76.4% retracements of the CD leg for the Gartley shown in blue color.
The trading range for today is among the major support at 0.8605 and the major resistance at 0.8850
The short term trend is to the downside targeting 0.7780 as far as 0.8965 level remain intact.
| Support | 0.8655 | 0.8630 | 0.8605 | 0.8580 | 0.8565 |
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| Resistance | 0.8700 | 0.8730 | 0.8780 | 0.8800 | 0.8820 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8710 targeting 0.8585 and stop loss above 0.8795 might be appropriate | ||||
