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Technical Major Currencies
Written by article default Monday, 20 June 2011 08:03
Euro
Weekly Report (June 20-24, 2011)
The upside move stopped at the retest for the breached support at 1.4325 which the MA 50 protected. The Stochastic is clearly negative and accordingly we expect the downside move to continue this week within the main descending correction channel shown above. The main target resides at 1.3910 and requires stability below 1.4450.
The trading range for this week is among the major support at 1.3910 and the major resistance at 1.4450.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4220 | 1.4155 | 1.4090 | 1.4040 | 4.3910 |
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| Resistance | 1.4280 | 1.4325 | 1.4395 | 1.4455 | 1.4515 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.4325 targeting 1.4090 and stop loss above 1.4450 might be appropriate this week | ||||
Great British Pound (GBP)
Weekly Report (June 20-24, 2011)
The pair stabilized below the support for the main ascending channel support shown above, while Stochastic provided overbought signs and this signals that the pair will resume the downside correction this week. The main targets reside at 1.5880 and the breach of 1.6220 will be the first signal for returning to the general upside move.
The trading range for this week is among the major support at 1.5770 and the major resistance at 1.6415.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6095 | 1.6045 | 1.60000 | 1.5955 | 1.5880 |
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| Resistance | 1.6210 | 1.6300 | 1.6380 | 1.6410 | 1.6445 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.6210 targeting 1.6000 and stop loss above 1.6320 might be appropriate this week | ||||
Japanese Yen (JPY)
Weekly Report (June 20-24, 2011)
The MA 50 remains a resistance ahead of the pair and adding negative pressure, while we have signs of a bearish pattern with the neckline at 79.65. This pattern alongside stability below 23.6% Fibonacci correction signal a downside move this week in general; the downside move requires the clear breach of 76.95 followed by 79.00 and also steady daily closing below 80.75-81.00.
The trading range for this week is among the major support at 78.40 and the major resistance at 82.00.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.05 | 79.65 | 79.00 | 78.40 | 78.00 |
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| Resistance | 80.75 | 81.15 | 82.00 | 82.50 | 83.10 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with the breach of 79.65 targeting 77.70 and stop loss above 80.75 might be appropriate this week | ||||
Swiss Franc (CHF)
Weekly Report (June 20-24, 2011)
The 23.6% Fibonacci –turned into support after its breach- halted the downside move for the pair to rebound to the upside from the MA 50 support. The pair is still forming the positive suggested pattern in our previous reports, and accordingly, we expect more upside correction targeting the main resistance for the downside move at 0.8655. We need to observe the pair at this level as the breach will push the pair towards 76.4% around 0.8755 and the breach of 0.8455 will negate the scenario and drive the pair to the downside settling for the seen upside correction till now.
The trading range for this week is among the major support at 0.8300 and the major resistance at 0.8755.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8455 | 0.8420 | 0.8360 | 0.8320 | 0.8350 |
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| Resistance | 0.8500 | 0.8540 | 0.8610 | 0.8655 | 0.8755 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair with the breach of 0.8540 targeting 0.8755 and stop loss below 0.8455 might be appropriate this week | ||||
Canadian Dollar (CAD)
Weekly Report (June 20-24, 2011)
Trading is still caught between the support for the intraday bullish channel which is supported also by the MA 50 and the positivity on Stochastic, and the 76.4% Fibonacci correction which is a strong resistance preventing the pair from further moving to the upside. Therefore, the intraday direction for the pair depends on breaching one of those areas between 0.9770-85 support and 0.9845 resistance. Breaching the support will drive the pair towards 0.9600 and the breach of 0.9845 will initially drive the pair to retest the breached psychological areas of 1.0000.
The trading range for this week is among the major support at 0.9600 and the major resistance at 1.0055.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9875 | 0.9710 | 0.9670 | 0.9605 | 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 opinion is selling the pair with four-hour closing below 0.9770 targeting 0.9605 and stop loss above 0.9845 OR buying the pair with four-hour closing above 0.9845 targeting 1.0000 and stop loss below 0.9770 might be appropriate this week | ||||
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