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Technical Major Currencies
Written by article default Thursday, 16 June 2011 09:08
Morning Report
The euro continued the strong downside move affected by the bearish technical pattern mentioned at 38.2% Fibonacci correction at 1.4155. The descending correction channel shown above and the completion of the mentioned bearish pattern signal the possibility for the downside correction to continue, yet we might see a slight upside correction to correct some of the downside move seen yesterday supported by the positivity on momentum indicators. This upside move might push the pair to retest the broken neckline at 1.4325. Breaching 1.4155 will open the path for the downside correction without the suggested retest.
The trading range for today is among the major support at 1.3970 and the major resistance at 1.4325.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4155 | 1.4090 | 1.4040 | 1.3970 | 1.3910 |
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| Resistance | 1.4205 | 1.4235 | 1.4300 | 1.4325 | 1.4395 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
The pair declined strongly attacking the main support for the ascending channel and closed yesterday below it and below the 38.2% correction. Therefore, we expect the pair to resume the downside correction for the coming period, yet the positivity on Stochastic might cause volatility and upside bias to retest 1.6220-35 before moving towards targets around 1.6045. Breaching areas of 1.6320 will be a strong signal for the end of the correction and the return to the upside move.
The trading range for today is among the major support at 1.6000 and the major resistance at 1.6400.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6180 | 1.6095 | 1.6045 | 1.6000 | 1.5955 |
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| Resistance | 1.6200 | 1.6235 | 1.6300 | 1.6325 | 1.6410 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.6200 targeting 1.6045 and stop loss above 1.6380 might be appropriate | ||||
Japanese Yen (JPY)
Morning Report
The pair continued the upside move yesterday yet hit the MA 50 which is a strong resistance restricting the upside move. This factor and the negativity on Stochastic over daily basis make us hold onto our intraday downside expectations for today which requires the return below 80.75 and stability below the MA 50.
The trading range for today is among the major support at 78.00 and the major resistance at 81.40.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.75 | 80.05 | 79.65 | 79.15 | 78.40 |
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| Resistance | 81.15 | 82.00 | 82.50 | 83.10 | 83.50 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 81.15 targeting 79.65 and stop loss above 82.00 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair stabilized around the 38.2% Fibonacci correction after breaching the resistance for the sideways wave. Momentum indicators are within overbought areas and accordingly we believe the pair will settle for the upside correction seen and resume the intraday bearishness for today targeting areas around 0.8320. Breaching 0.8540-50 will extend the upside move.
The trading range for today is among the major support at 0.8320 and the major resistance at 0.8670.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8500 | 0.8455 | 0.8420 | 0.8360 | 0.8320 |
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| Resistance | 0.8540 | 0.8585 | 0.8675 | 0.8720 | 0.8810 |
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| Recommendation | Based on 8670 charts and explanations above our opinion is selling the pair around 0.8540 targeting 0.8320 and stop loss above 0.8675 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair rushed to the upside to stabilize above the support the for the ascending correction channel, while noting the sideways trading that is controlling the movement on the chart above. Therefore, we will observe the pair around the sensitive areas organizing the intraday move for the pair as the breach of 0.9760 support –aided by the negativity on momentum indicators- will drive the pair initially towards 0.9615, while the breach of 0.9845 will drive the pair to the psychological 1.0000 areas.
The trading range for today is among the major support at 0.9565 and the major resistance at 0.9845.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9760 | 0.9710 | 0.9670 | 0.9615 | 0.9565 |
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| Resistance | 0.9845 | 0.9915 | 0.9970 | 1.0000 | 1.0055 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with the breach of 0.9760 targeting 0.9615 and stop loss above 0.9845 OR buying the pair with the breach of 0.9845 targeting 1.0000 and stop loss below 0.9760 might be appropriate | ||||
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