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Technical Major Currencies
Written by article default Monday, 27 June 2011 09:17
Weekly Report (June 27 – July 01, 2011)
Trading started today with the pair’s stability below areas of 38.2% Fibonacci correction for the upside wave shown above. We can see the downside bias on Stochastic despite trading within oversold areas. Also, the descending channel engulfing the MA 50 at 1.4320 keeps the downside pressures evident. Therefore, we believe the pair will be pressured to the downside this week which essentially requires stability below the MA mentioned to prevail.
The trading range for this week is among the major support at 1.3775 and the major resistance at 1.4455.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4085 | 1.4040 | 1.3970 | 1.3910 | 1.3880 |
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| Resistance | 1.4165 | 1.4205 | 1.4255 | 1.4320 | 1.4375 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.4205 targeting 1.3970 and stop loss with four-hour closing above 1.4320 might be appropriate | ||||
Great British Pound (GBP)
Weekly Report (June 27 – July 01, 2011)
Breaching the ascending channel is strongly affecting the pair, as trading is affected by the minor descending channel that continues to pressure the pair. Trading below the 50% Fibonacci correction shown above adds more negativity on the pair which might extend the downside move this week. Stochastic shows oversold sign which might increase the volatility during the expected bearish move.
The trading range for this week is among the major support at 1.5580 and the major resistance at 1.6210.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.5875 | 1.5810 | 1.5765 | 1.5700 | 1.5650 |
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| Resistance | 1.5965 | 1.6000 | 1.6060 | 1.6100 | 1.6155 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.5965 targeting 1.5765 and stop loss with daily closing above 1.6060 might be appropriate | ||||
Japanese Yen (JPY)
Weekly Report (June 27 – July 01, 2011)
The sideways range continues to dominate the pair’s trading. Currently, the pair is stable below the MA 50 and Stochastic is approaching overbought areas. Stability below 80.95 areas keeps the downside possibility valid, and stability above those areas favor the upside move this week. Therefore, we remain neutral over weekly basis and observe the pair over the coming period to determine the next move.
The trading range for this week is among the major support at 78.00 and the major resistance at 83.85.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.30 | 80.05 | 79.65 | 79.00 | 78.40 |
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| Resistance | 80.95 | 81.50 | 82.00 | 82.75 | 83.00 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Swiss Franc (CHF)
Weekly Report (June 27 – July 01, 2011)
The chart shows the formation of strong support around 0.8335, where the pair hit this levels twice and rebounded to the upside. Stochastic is within overbought areas, while RSI is neutral. Stability above 0.8305 might extend the upside move, while breaching this level will extend the downside move affected by Stochastic. Assessing the sideways range dominating the pair, we expect the pair to test MA 50 areas and might extend to the resistance for the range around 0.8535. Therefore, as far as trading is stable above 0.8305 areas, the upside potential remains valid; breaching those areas will extend the current bearishness.
The trading range for this week is among the major support at 0.8170 and the major resistance at 0.8600.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8335 | 0.8305 | 0.8250 | 0.8170 | 0.8150 |
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| Resistance | 0.8420 | 0.8455 | 0.8500 | 0.8540 | 0.8600 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 0.8335 targeting 0.8535 and stop loss with four-hour closing below 0.8305 and if the stop loss was triggered we recommend selling the pair with four-hour closing below 0.8305 targeting 0.8170 and stop loss above 0.8420 might be appropriate | ||||
Canadian Dollar (CAD)
Weekly Report (June 27 – July 01, 2011)
The sharp upside move carried the pair once again into the ascending channel accompanied by clear overbought signs on Stochastic. The heavy buying saturation seen might force the pair into a bearish correctional move; nevertheless, we expect the pair might test areas of 1.1000 and shall the pair breach those areas we might see an extension to the upside move.
The trading range for this week is among the major support at 0.9670 and the major resistance at 1.0210.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9900 | 0.9845 | 0.9825 | 0.9770 | 0.9710 |
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| Resistance | 0.9970 | 1.0000 | 1.0035 | 1.0125 | 1.0160 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 0.9900 targeting 1.0125 and stop loss below 0.9825 might be appropriate | ||||
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