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Technical Cross
Written by article default Tuesday, 31 May 2011 10:32
Morning Report
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The pair inclined during the Asian session where it succeeded in surpassing 61.8% retracement of XA leg and this upside action could threaten 50% Fibonacci levels. In the interim, Stochastic started to be more negative and we know that passing the lower or upper line of Keltner channel quickly may indicate an oversold or overbought case. The provided chart shows how the upper line of Keltner channel was penetrated during the previous session. Thereby, we will be neutral until the pair stabilizes with an obvious four hour closing below 61.8% Fibonacci level to make sure that the bearish scenario discussed in details in the weekly report will be resumed.
The trading range for today is among key support at 131.05 and key resistance at 137.30.
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 | 133.65 | 132.35 | 132.00 | 131.60 | 131.05 |
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| Resistance | 134.80 | 135.50 | 136.20 | 136.80 | 137.30 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below-four hour closing below- 133.80 targeting 131.05 and stop loss above 135.60 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The EUR/JPY pair soared during the previous session approaching the key resistance level where 38.2% Fibonacci retracement of XA leg for our suggested Bat pattern exists. Breaching the downtrend line that started from C point alongside positive sign on Stochastic force us to stay aside at least during the coming session until we make sure that 38.2% retracement is still strong enough to send the pair lower. Once the pair penetrates 115.75, the bearishness will be in favor again to resume the CD leg journey of our proposed harmonic sequence.
The trading range for today is among key support at 114.25 and key resistance now at 119.10.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 116.30 | 115.75 | 115.25 | 114.90 | 114.25 |
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| Resistance | 117.00 | 117.30 | 118.20 | 118.65 | 119.10 |
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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. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair was trapped within a very tight range since yesterday and therefore, the bearish effect of our previous explained Gartley pattern is still in favor, particularly after stabilizing below 38.2% retracement of CD leg at 0.8750 zones. Stochastic might cause some kind of fluctuation but AROON up-colored in green- is hitting the value of 70.00. Breaching 61.8% retracement of CD leg at 0.8570 will send the pair lower towards 0.8560 where the first extended technical objective of the pattern exists at 76.4%.
The trading range for today is among the key support at 0.8560 and key resistance now at 0.8800.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8655 | 0.8630 | 0.8605 | 0.8585 | 0.8560 |
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| Resistance | 0.8715 | 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 0.8700 targeting 0.8550 and stop loss above 0.8800 might be appropriate. | ||||
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