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Technical Major Currencies
Written by article default Tuesday, 05 July 2011 08:15
Morning Report
The pair closed yesterday above the downside correctional channel’s resistance shown above, which keeps the chances for the pair valid to achieve yesterday’s proposed bullishness, especially that the pair is approaching oversold areas. On the secondary image we can see a minor downside technical pattern, which may cause the retest of 1.4440 area before rebounding again to the upside. We expect an intraday upside move with targets at 1.4700, which requires stability above 1.4440.
The trading range for today is among the major support at 1.4375 and the major resistance at 1.4700.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4440 | 1.4375 | 1.4340 | 1.4265 | 1.4225 |
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| Resistance | 1.4495 | 1.4540 | 1.4585 | 1.4640 | 1.4695 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4440 targeting 1.4585 and stop loss below 1.4340 might be appropriate today | ||||
Great British Pound (GBP)
Morning Report
The pair is trading within a minor upside channel, which may from a continuation flag pattern. Breaching the support of this channel means the continuation of the downside correction which started from 1.6745. On the other hand, Stochastic shows overbought signs which could support the pair to target the descending correctional channel’s resistance. From here, the conflicting technical signals make us prefer neutrality for today and observe the pair’s behavior around 1.6030 and 1.6130.
The trading range for today is among the major support at 1.5880 and the major resistance at 1.6310.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6045 | 1.6000 | 1.5960 | 1.5880 | 1.5810 |
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| Resistance | 1.6105 | 1.6130 | 1.6180 | 1.6245 | 1.6310 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Japanese Yen (JPY)
Morning Report
Despite yesterday’s closing below the MA 50, but positivity can be seen this morning on the pair, where the pair currently surpassed the MA 50, which could be a sign to retest the ascending channel’s resistance shown above. Therefore, we favor observing the pair around the sensitive levels at 81.50 resistance and the 80.25 support.
The trading range for today is among the major support at 79.65 and the major resistance at 82.00.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.75 | 80.25 | 79.65 | 79.00 | 78.50 |
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| Resistance | 81.45 | 82.00 | 82.50 | 83.10 | 83.50 |
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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 trading near the downside channel’s resistance which currently declinied to 0.8520. We can notice that the pair is trading narrowly since yesterday, among Fibonacci corrections at 23.6% and 38.2%. In general, consolidating below the mentioned resistance support our expectations for an intraday downside move with targets starting from 0.8325, but the pair should consolidate below the resistance area among 85.20-40.
The trading range for today is among the major support at 0.8325 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 | 0.8455 | 0.8375 | 0.8325 | 0.8250 | 0.8170 |
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| Resistance | 0.8520 | 0.8600 | 0.8675 | 0.8755 | 0.8810 |
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| Recommendation | Based on 8670 charts and explanations above our opinion is selling the pair around 0.8520 targeting 0.8325 and stop loss above 0.8600 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
The pair continues trading with a slight upside bias since yesterday, while Stochastic is approaching overbought areas, a sign that the pair is loosing the upside momentum. This factor besides the MA 50 resistance make us favor a general intraday downside move. Our expectations require a clear breach of 0.9565, and stability below 0.9695.
The trading range for today is among the major support at 0.9445 and the major resistance at 0.9695.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9565 | 0.9500 | 0.9445 | 0.9400 | 0.9350 |
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| Resistance | 0.9655 | 0.9695 | 0.9770 | 0.9845 | 0.9915 |
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| Recommendation | Based on the charts and explanations above our opinion is opinion is selling the pair with the breach of 0.9565 targeting 0.9400 and stop loss above 0.9655 might be appropriate today | ||||