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Technical Cross
Written by article default Thursday, 07 July 2011 08:10
Morning Report
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The pair declined sharply and currently trading below the pivotal support of 129.40 as we anticipated yesterday. This decline is considered to be normal price behavior due to facing the resistance of 100% retracement of CD leg for the efficient bearish harmonic butterfly pattern where the upper line of Keltner channel exists. Henceforth, the path becomes clear towards the next Fibonacci level of 127.2% projection of CD leg supported by the negativity on Stochastic and the bearish candlestick formation over four hour interval. Breaching through SMA 50 added further negative pressure as seen on the secondary image. To conclude, our outlook remains bearish over intraday basis as far as the pivotal resistance of 132.50 remains intact.
The trading range for today is among key support at 126.70 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 | 128.85 | 128.40 | 127.60 | 126.70 | 125.50 |
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| Resistance | 130.00 | 130.50 | 131.05 | 131.60 | 132.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 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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In line with our bearish harmonic scenario of the butterfly pattern, we see how the pair descended aggressively breaching through 38.2% Fibonacci retracement of CD leg at 116.20, opening the door for the second technical objective at 61.8%. RSI 14 signals potential slight upside correction before resuming the downside rally, noting that the bearishness appearing on the bigger time frames became clearer and we recommend following our next reports where we will discuss the overview of the bigger picture.
The trading range for today is among key support at 112.80 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 | 115.25 | 114.70 | 114.25 | 113.50 | 113.15 |
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| Resistance | 116.30 | 116.95 | 117.30 | 117.85 | 118.35 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 116.20 targeting 113.90 and stop loss above 118.00 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The pair has closed negatively below the C point of the bullish harmonic 5-0 pattern threatening the technical idea of reaching more extended technical target of CD leg after recording 0.9080 earlier. Actually, we are not completely sure if the upside journey has been limited around the aforementioned level since SMA 20 is carrying the entire upside wave from below as seen on the main daily graph. In the interim, the four hour chart reflects a contrarian between trading below SMA and the bullishness on RSI of this time interval, while the candlesticks formation is bullish. The above discussed conflicting technical factors force us to stay aside over intraday basis until we make sure if yesterday's decline below C point is not a false breakout.
The trading range for today is among the key support at 0.8850 and key resistance now at 0.9070.
The general trend over short term basis is to the upside targeting 1.0000 as far as areas of 0.8420 remain intact.
| Support | 0.8950 | 0.8925 | 0.8915 | 0.8900 | 0.8870 |
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| Resistance | 0.8980 | 0.9000 | 0.9030 | 0.9070 | 0.9140 |
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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. | ||||