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Technical Cross
Written by article default Wednesday, 06 July 2011 08:05
Morning Report
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The long upper wick of yesterday's candlestick shows that the pair started to lose its upside steam, while the upper line of Keltner channel proved that it is a good resistance. Stochastic overlapped negatively; whilst the four hour candlestick formation added further confirmation that the pair is on its way to achieve more extended downside technical targets for the bearish harmonic butterfly pattern. Breaching 129.40 is required to accelerate the awaited downside wave. On the other hand, breaching 132.50 will give reason for concern.
The trading range for today is among key support at 126.70 and key resistance at 133.15.
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 | 128.85 | 128.40 | 127.60 | 126.70 |
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| Resistance | 130.50 | 131.05 | 131.60 | 132.00 | 132.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 129.40 targeting 126.25 and stop loss above 131.70 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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After two days of consolidation, the pair succeeded in attacking the previous mentioned pivotal support areas around 116.90 -click on the previous report for more details- where the first PRZ of the bearish harmonic butterfly pattern was actived. The negative candlestick formation along with the obvious bearishness on RSI and AROON are technical factors that argue us to keep our bearish harmonic scenario intact over intraday basis. Breaching 116.30-116.20 areas will trigger panic sell-off actions over coming sessions.
The trading range for today is among key support at 114.25 and key resistance now at 119.10.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 116.35 | 115.75 | 115.25 | 114.70 | 114.25 |
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| Resistance | 117.30 | 117.85 | 118.35 | 118.70 | 119.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 116.95 targeting 114.25 and stop loss above 118.85 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The royal pair succeeded in achieving the first part of our weekly expectations via moving towards the initial support levels around C point -previous resistance- where we believe that it will be able to build a technical base to resume the journey of reaching more extended technical objectives for the 5-0 pattern. The secondary image of the four hour timescale shows that SMA 50 started to support the pair from below. Therefore, we keep our positive expectations over intraday basis and breaching 0.9030 will be a motive for visiting 161.8% of CD leg of the bullish harmonic formation later at 0.9135 zones.
The trading range for today is among the key support at 0.8870 and key resistance now at 0.9110.
The general trend over short term basis is to the upside targeting 1.0000 as far as areas of 0.8420 remain intact.
| Support | 0.8980 | 0.8965 | 0.8950 | 0.8925 | 0.8900 |
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| Resistance | 0.9010 | 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 0.8980 targeting 0.9115 and stop loss below 0.8900 might be appropriate. | ||||