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Technical Cross
Written by article default Tuesday, 07 June 2011 09:48
Morning Report
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The pair achieved the previous anticipated negative closing below 88.6% Fibonacci retracement level of CD leg for our caught bearish harmonic butterfly as seen on the provided daily graph. We see hoe the extended technical targets of the pattern are falling one after another but we believe that Stochastic will be the reason for witnessing some kind of fluctuation before resuming the downside rally expected over intraday basis. Breaching through 130.50 zones will be able to weaken 100% retracement on the way towards 127.2% of the suggested harmonic formation.
The trading range for today is among key support at 128.40 and key resistance at 134.80.
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 | 130.00 | 129.40 | 128.40 | 127.60 |
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| Resistance | 132.00 | 132.50 | 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 131.65 targeting 128.40 and stop loss above 133.80 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The pair has been trading within a very narrow range since the opening of this week; whilst SMA 50 is still acting as a good ceiling as seen on the provide chart. At the same time, it is still trading above 38.2% of XA leg of the harmonic structure that is not completed yet. Stochastic is negative; whilst Vortex is positive until now and thus, the contrarian between momentum and trend indicators forces us to stay aside over intraday basis, noting that the corrective nature of the current movements might cause a bearish tendency. A sustained breakout below 116.90 will bring panic selling pressures over upcoming sessions.
The trading range for today is among key support at 114.75 and key resistance now at 120.00.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 116.90 | 116.30 | 116.75 | 115.25 | 114.75 |
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| Resistance | 117.75 | 118.25 | 118.65 | 119.10 | 119.80 |
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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 subsidiary image of the four hour time interval shows the solidity of the bullish trend line that dominated the movements during the pervious sessions. This bullishness is carried comfortably above SMA 50 and in the interim; we see how the pair is still moving higher towards the initial resistance levels of 0.8965 where a break of which will bring aggressive buying pressures over coming period. The main graph supports resuming the bullishness based on the bullish nature of the captured symmetrical triangle pattern discussed yesterday in details in the weekly report. Thus, the bullishness will be in favor today and areas of 0.9000-0.9030 are under our technical microscope.
The trading range for today is among the key support at 0.8820 and key resistance now at 0.9070.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8915 | 0.8885 | 0.8850 | 0.8820 | 0.8800 |
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| Resistance | 0.8965 | 0.9000 | 0.9030 | 0.9070 | 0.9100 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8915 targeting 0.9070 and stop loss below 0.8820 might be appropriate. | ||||