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Technical Cross
Written by article default Wednesday, 29 June 2011 08:31
Morning Report
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The pair continued its mild upside recovery where it becomes very close to the initial resistance of 100% Fibonacci for the CD leg of our caught bearish harmonic butterfly pattern. This pivotal resistance -previous broken support- may pressure the pair negatively and fix the positive sign on Stochastic since Vortex is still reflecting the strength of the bearish trend of reaching the extended technical targets of the harmonic structure. Thereby, we hold onto our bearish predications over intraday basis, noting that a break of 130.05 with a daily closing will delay the harmonic effect.
The trading range for today is among key support at 125.50 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 | 129.40 | 128.40 | 127.60 | 126.70 | 126.00 |
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| Resistance | 130.00 | 130.50 | 131.05 | 131.60 | 132.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 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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The pair continued its upside movements for the second consecutive day closing above 50% Fibonacci retracement f XA leg as seen on the provided daily graph. At the same time, we can see how it is currently touching SMA 50, while 38.2% Fibonacci represents a solid barrier. Additionally, momentum and trend indicators are still positive and that may delay the bearishness of continuing the construction of CD leg of our proposed bat pattern. Therefore, we prefer staying aside over intraday basis, noting that a break of 115.75 will be a very negative indication.
The trading range for today is among key support at 113.50 and key resistance now at 118.35.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 115.75 | 115.25 | 114.75 | 114.25 | 113.50 |
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| Resistance | 116.70 | 116.95 | 117.30 | 117.80 | 118.35 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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In addition to the classical probability which we discussed several times during the previous session, we can notice that the pair is hitting the initial resistance of 0.8980 where C point of the bullish harmonic "5-0" pattern exists. Actually, the pair couldn't draw an ideal PRZ from 50% retracement of BC leg but inclines from areas between 61.8% and 76.4% towards the current levels encourages us to predicate more bullishness. This aforesaid pattern always brings an extended rally beyond C point. Breaching through the psychological levels of 0.90000 would be able to accelerate the positive scenario.
The trading range for today is among the key support at 0.8850 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 | 0.8965 | 0.8925 | 0.8900 | 0.8875 | 0.8850 |
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| Resistance | 0.9000 | 0.9030 | 0.9070 | 0.9110 | 0.9140 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.8955 targeting 0.9110 and stop loss below 0.8850 might be appropriate. | ||||
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