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Technical Cross
Written by article default Wednesday, 08 June 2011 08:26
Morning Report
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The overbought sign on Stochastic yesterday hasn't been fixed completely until now but we can see a negative sign on Vortex clarifying that the bearish trend is strong enough to send the pair lower. Actually, the pair is still consolidating around 88.6% Fibonacci level of CD leg for our efficient bearish harmonic butterfly pattern and we might see a price explosion to achieve more extended technical targets according to harmonic rules. Focusing now is on the full correctional level of CD leg where a break of which will accelerate our negative scenario.
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 | 130.50 | 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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Continuous signs of uptrend exhaustion appear on the provided daily graph as follows:
- The continuation classical pattern.
- The solidity of SMA 50.
- The bearish sign appearing on Stochastic.
Thereby, we believe that the pair has finished its preparation steps to move lower in order to continue forming the CD leg of the proposed Bat pattern, but not before breaching 116.90 decisively to make sure that 38.2% retracement of XA has been beaten.
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 | 115.75 | 115.25 | 114.70 |
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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, selling the pair with a breakout below 116.90 targeting 114.25 and stop loss above 118.80 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair has been trading within a very tight range where the bullishness is comfortably carried above SMA 50 as seen on the provided chart. 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 trigger aggressive buying pressures over coming period. This bullishness based on the bullish nature of the captured symmetrical triangle pattern discussed yesterday in details in the weekly report and thus, we hold onto our bullish predications over intraday basis supported by the positivity appearing on AROON indicator.
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. | ||||