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Technical Major Currencies
Written by article default Wednesday, 29 June 2011 08:23
Morning Report
Yesterday’s closing was above the MA 50 at 1.4325 supporting the attempts to test areas between 23.6% correction at 1.4455 and the main resistance for the minor descending channel at 1.4535. Stochastic proved the strength of the upside signal and the effect on the pair, while the RSI is stable above 50.00 supporting our expectations for an upside move today. Returning below 1.4260 weakens the upside wave and breaching 1.4205 revives the bearishness.
The trading range for today is among the major support at 1.4135 and the major resistance at 1.4565.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4325 | 1.4265 | 1.4205 | 1.4160 | 1.4135 |
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| Resistance | 1.4375 | 1.4415 | 1.4455 | 1.4535 | 1.4565 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4350 targeting 1.4455 and 1.4535 and stop loss with four-hour closing below 1.4260 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
All the upside attempts for the pair failed after reaching areas between 1.6000 and 1.6060, which reflects the strength of this area. Assessing Stochastic, we can see that the index is attempting to crossover positively which will increase the volatility for today. Nevertheless, the breach of the main ascending support and the minor descending channel make us hold onto our negative expectations for today. Chances for an upside correction are still possible for the pair today yet it will not be sufficient to provide the pair with the momentum to stabilize above 1.6110 yet stability above those areas signals the possibility to test the main breached support –now resistance- around 1.6275 areas.
The trading range for today is among the major support at 1.5700 and the major resistance at 1.6275.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.5965 | 1.5920 | 1.5875 | 1.5810 | 1.5765 |
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| Resistance | 1.6020 | 1.6060 | 1.6110 | 1.6175 | 1.6210 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.6020 targeting 1.5810 and stop loss with four-hour closing above 1.6110 might be appropriate | ||||
Japanese Yen (JPY)
Morning Report
The pair closed above the MA 50 Days and accordingly breached 80.90 areas. This move might negate the downside move for some time, yet Stochastic is currently reflecting the inability to remain positive and might crossover negatively soon. Actually, the MA 100 at 81.60 was previously strong resistance and that might prevent the pair from resuming the upside move. We remain neutral to see if the pair will breach 80.90 or not.
The trading range for today is among the major support at 80.05 and the major resistance at 82.75.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.90 | 80.30 | 80.05 | 79.65 | 79.00 |
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| Resistance | 81.40 | 87.60 | 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)
Morning Report
The pair is attempting to breach 0.8305, which remains the defining barrier for the pair’s direction. Over hourly basis, the downside move is organizing the movement, as the main resistance for this direction is at 0.8355 while the MA 50 around 0.8335 is a critical resistance now. Momentum indicators are turning negative, and not rebounding from 0.8305 makes us favor the downside move for today if the four-hour closing is below 0.8305.
The trading range for today is among the major support at 0.8170 and the major resistance at 0.8500.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8285 | 0.8250 | 0.8170 | 0.8150 | 0.8110 |
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| Resistance | 0.8355 | 0.8385 | 0.8420 | 0.8455 | 0.8540 |
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| Recommendation | Based on 8670 charts and explanations above our opinion is 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)
Morning Report
The pair faces 0.9800 with downside bias supported by Stochastic, and over four-hour basis we can see the upside move that the pair is moving within, where it extends between the resistance and the support. Currently, the pair attempts to stabilize below the MA 50 at the mentioned level and represents the 23.6% correction. Stochastic is within oversold areas, and those conflicting signals make us remain neutral to observe the reaction around the mentioned areas.
The trading range for today is among the major support at 0.9600 and the major resistance at 0.9970.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9770 | 0.9710 | 0.9670 | 0.9600 | 0.9565 |
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| Resistance | 0.9845 | 0.9900 | 0.9970 | 1.0000 | 1.0035 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||