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Technical Cross
Written by article default Thursday, 23 June 2011 08:40
Morning Report
The pair declined sharply yesterday, where the butterfly harmonic pattern continues to affect the pair, especially after stabilizing below the bottom of point C for the pattern as shown in image. The continuation of the downside movement is likely, harmonic trading suggests that stability below point C (in our case 130.05) should extend the move toward the 127.2% projection of the CD leg, which means levels near 127.40. Stochastic failed to show positive signs yesterday, while ADX continues to move to the downside.
Trading range for the week is among the major support at 126.70 and the major resistance at 132.45.
The short term trend is to the downside as long as 150.75 holds targeting 118.80.
| Support | 128.70 | 128.30 | 127.40 | 126.70 | 126.45 |
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| Resistance | 129.40 | 130.05 | 130.50 | 130.80 | 131.05 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 129.40 targeting 127.40 and stop loss above 131.05 may be appropriate for today. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
The pair declined to reach levels near the 50% retracement again around 114.90, the harmonic pattern is still valid, which is a Bat pattern , the CD leg of this pattern may take the shape of an AB=CD formation. The ADX is signaling the upside movement weakened dramatically. Stochastic is near overbought area and accordingly, we hold onto our negative expectations for the pair, mentioning that stability below the 50% retracement may confirm the downside move.
Trading range for the day is among the major support at 111.60 and the major resistance at 116.90.
The short term trend is to the downside as long as 132.50 holds targeting 97.90.
| Support | 114.90 | 114.25 | 113.60 | 112.80 | 112.10 |
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| Resistance | 115.25 | 115.75 | 115.90 | 116.30 | 116.90 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around115.25 targeting 112.10 and stop loss above 116.30 may be appropriate for today. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
The effect of the bullish 0-5 pattern on the pair continues, this pattern is known for achieving targets above point C. However, Stochastic is providing negative signs which may result in some downside correction, but in general, the upside movement is still likely. ADX is supporting the continuation of the ascending channel.
Trading range for the day is among the major support at 0.8750 and the major resistance at 0.9040.
The short term trend is to the downside as long as 0.8965 holds targeting 0.7780.
| Support | 0.8900 | 0.8865 | 0.8820 | 0.8800 | 0.8750 |
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| Resistance | 0.8935 | 0.8965 | 0.9000 | 0.9040 | 0.9185 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 0.8865 targeting 0.9040 and stop loss below 0.8750 may be appropriate for today. | ||||
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