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Technical Major Currencies
Written by article default Wednesday, 06 July 2011 07:56
Morning Report
The MA 50 was able to support the pair yesterday to reverse to the upside supported by the overbought signs over four-hour basis. Trading stabilized above the breached neckline for the bullish pattern shown above and accordingly we hold onto our expectations for a bullish intraday move today which requires the clear breach of 1.4495 and stability above 1.4440.
The trading range for today is among the major support at 1.4325 and the major resistance at 1.4640.
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 | ||||
Great British Pound (GBP)
Morning Report
Trading continues within the minor ascending channel shown above, while trading is stable above the MA 50. Therefore, we expect an intraday upside move today to test 1.6210 then 1.6305 which requires stability above 1.6045.
The trading range for today is among the major support at 1.5960 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 | 1.6130 | 1.6180 | 1.6245 | 1.6305 | 1.6380 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.5960 targeting 1.6130 and stop loss below 1.5880 might be appropriate | ||||
Japanese Yen (JPY)
Morning Report
Trading continues around the MA 50 which resides with the 23.6% Fibonacci correction, noting the downside bias on the pair to trade below the mentioned MA. In general, we expect the pair to move in line with the suggested scenario on the chart over daily basis, where the pair could breach the minor ascending channel’s support at 80.30 after the stability of 23.6% correction. If the breach is confirmed the path will be clear towards the sensitive support at 79.65 then 78.40. In general, we expect a downside move for today with trading below 81.50.
The trading range for today is among the major support at 79.00 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 | 80.30 | 79.65 | 79.00 | 78.40 |
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| Resistance | 81.50 | 82.00 | 82.50 | 83.10 | 83.50 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with the breach of 80.30 targeting 78.40 and stop loss above 81.50 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair continues to trade with a downside bias to settle now below the MA 50, which is further confirmation for the resumption of the downside move suggested earlier. We can see trading within the sideways range shaded in yellow and accordingly, breaching the support at 0.8235 will accelerate the expected intraday bearish move for today targeting 0.8250 then 0.8170. Stability below the resistance between 0.8505 and 0.8540 is requires for our expectations to prevail.
The trading range for today is among the major support at 0.8170 and the major resistance at 0.8540.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8325 | 0.8250 | 0.8170 | 0.8150 | 0.8110 |
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| Resistance | 0.8415 | 0.8455 | 0.8505 | 0.8540 | 0.8600 |
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| Recommendation | Based on 8670 charts and explanations above our opinion is selling the pair with the breach of 0.8325 targeting 0.8170 and stop loss above 0.8415 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The tight range is dominating trading for the pair since yesterday, while the 38.2% Fibonacci correction was a strong barrier preventing the pair from further upside movement. Therefore, we hold onto our downside intraday expectations for today targeting 0.9565 which is the gateway to the general downside wave. The suggested scenario requires stability below 0.9695 to prevail.
The trading range for today is among the major support at 0.9400 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 | ||||