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Technical Cross
Written by article default Tuesday, 28 June 2011 08:06
Morning Report
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In line with yesterday's suggested slight recovery, the pair moved towards the previous broken support -turned into resistance- around 100% Fibonacci of CD leg for the harmonic butterfly pattern. Now, the middle line of Keltner channel -blue line- may pressure the pair negatively pushing it lower, noting that Vortex indicators still reflects an obvious bearish case. To recap, we still see chances for resuming the downside move of reaching the extended technical targets of our caught bearish harmonic butterfly pattern which proved its efficiency during the past two months. Breaching through 130.05 with a daily closing will delay the bearishness; whilst breaching 127.35 will trigger a panic selling pressures.
The trading range for today is among key support at 126.00 and key resistance at 132.50.
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 | 128.40 | 127.60 | 127.35 | 126.70 | 126.00 |
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| Resistance | 129.40 | 130.00 | 130.50 | 131.05 | 131.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 129.40 targeting 126.00 and stop loss above 131.60 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Yesterday's mild recovery has taken the pair towards the middle of Bollinger bands as seen on the main graph. On the secondary image we can notice that a bearish candlestick formation -shooting star- has been formed and it may limit this recovery but we need a four-hour closing below 114.95 zones to make sure that the pair will threaten the initial support of 113.50 once again. Anyway, the bearishness of resuming the CD leg of the proposed Bat pattern might continue over intraday basis as far as 116.95 zones remain intact.
The trading range for today is among key support at 112.80 and key resistance now at 117.30.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 115.00 | 114.75 | 114.25 | 113.50 | 112.80 |
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| Resistance | 115.75 | 116.30 | 116.70 | 116.95 | 117.30 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 115.75 targeting 113.50 and stop loss above 116.95 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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Following the outlook for the four-hour timescale which we discussed in our previous report, we can see how the royal pair has soared breaching the resistance line of a potential continuation pattern as seen on the secondary graph. Furthermore, SMA 50 is still carrying the bullishness from below; thus, the bullishness of the bigger weekly timeframe discussed in the weekly report may continue over intraday basis. Note that AROON signal was fixed by yesterday's anticipated incline comparing with yesterday's sign.
The trading range for today is among the key support at 0.8820 and key resistance now at 0.9110.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of 0.8965 remain intact.
| Support | 0.8925 | 0.8900 | 0.8875 | 0.8850 | 0.8820 |
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| Resistance | 0.8965 | 0.9000 | 0.9030 | 0.9070 | 0.9110 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8930 targeting 0.9110 and stop loss below 0.8820 might be appropriate. | ||||