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Technical Major Currencies
Written by article default Monday, 11 July 2011 09:12
EuroWeekly Report (July 11-15, 2011)
The pair declined sharply during the past week, after it reversed to the downside from MA 50 levels on Friday. Currently, the pair is approaching 38.2% Fibonacci correction, which is around the minor support at 1.4150 as shown above on the chart. Breaching the mentioned correction may extend the downside trend, testing the 50% correction at 1.3910. Stochastic is within oversold areas, which may cause sharp fluctuations before continuing the bearishness.
The trading range for this week is among the major support at 1.3775 and the major resistance at 1.4455.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4150 | 1.4085 | 1.4040 | 1.3970 | 1.3910 |
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| Resistance | 1.4205 | 1.4255 | 1.4320 | 1.4375 | 1.4455 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with four-hour closing below 1.4150 targeting 1.3910 and stop loss with four-hour closing above 1.4255 might be appropriate | ||||
Great British Pound (GBP)
Weekly Report (July 11-15, 2011)
We witnessed during the past week heavily sideways fluctuations between the support at 1.5915 and the resistance at 1.6140 without reaching any of them. Stabilizing below the 50% correction at 1.6040 may drive the pair to retest the 61.8% correction at 1.5880, and stabilizing below the previous resistance is required for the negative expectations to remain valid.
The trading range for this week is among the major support at 1.5650 and the major resistance at 1.6325
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.5915 | 1.5880 | 1.5810 | 1.5765 | 1.5700 |
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| Resistance | 1.6040 | 1.6100 | 1.6140 | 1.6210 | 1.6325 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair around 1.6040 targeting 1.5880 and stop loss above 1.6140 might be appropriate | ||||
Japanese Yen (JPY)
Weekly Report (July 11-15, 2011)
The minor upside channel is controling the pair until now. We also see Stochastic trying to turn positive, and the pair is near the main support of the upside channel. Consolidation above the upside channel’s main support at 80.40 may push the pair to rebound again to the upside, trying to stabilize above the strong resistance at 81.40.
The trading range for this week is among the major support at 79.00 and the major resistance at 83.50.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 80.40 | 80.05 | 79.80 | 79.65 | 79.00 |
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| Resistance | 80.95 | 81.15 | 81.40 | 81.85 | 82.00 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 80.55 targeting 81.85 and stop loss below 79.80 might be appropriate | ||||
Swiss Franc (CHF)
Weekly Report (July 11-15, 2011)
The pair reversed sharply to the downside from the downside channel’s main resistance as shown on the chart. But, this downside trend couldn’t force the pair to exit the sideways range between 0.8305 and 0.8535 as shown above, where stabilizing among these levels does not give any significant sign, and we need a daily closing out of this range. Stochastic is still trading bearishly, but it entered overbought areas. Generally, consolidating below the downside channel’s main resistance at 0.8465 and below the sideways resistance will keep the pair’s chances valid to the downside attempting to breach 0.8305.
The trading range for this week is among the major support at 0.8170 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 | 0.8335 | 0.8305 | 0.8250 | 0.8170 | 0.8110 |
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| Resistance | 0.8420 | 0.8465 | 0.8500 | 0.8535 | 0.8600 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8420 targeting 0.8170 and stop loss above 0.8420; and if the stop loss was triggered we recommend buying the pair around 0.8420 targeting 0.8535 and stop loss with four-hours closing below 0.8305 may be appropriate | ||||
Canadian Dollar (CAD)
Weekly Report (July 11-15, 2011)
After touching levels around the downside channel’s main resistance, which turned into support around 0.9545 after it was breached, the pair tended to the upside trying to retest the MA 50 around 0.9750. The pair failed to breach 0.9545 support, and Stochastic is trying to turn positive which could push the pair to continue the upside trend this week
The trading range for this week is among the major support at 0.9350 and the major resistance at 0.9845.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9575 | 0.9545 | 0.9500 | 0.9445 | 0.9400 |
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| Resistance | 0.9700 | 0.9770 | 0.9845 | 0.9880 | 0.9915 |
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| Recommendation | Based on the charts and explanations above our opinion is opinion is buying the pair around 0.9575 targeting 0.9750 and stop loss below 0.9500 might be appropriate this week | ||||