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Technical Major Currencies
Written by article default Tuesday, 12 July 2011 09:41
Morning Report
The pair continues the downside trend, approaching the awaited 1.3910 accompanied with Stochastic entering oversold areas. These factors may cause the pair to rebound to the upside, especially with the signals for the main upside channel shown above, which may indicate that the pair is near return to the upside. Currently, uncertainty surrounds the intraday direction, where the downside correction channel is indicating more downside correction targeting 61.8% Fibonacci at 1.3665, while the mentioned upside trend’s support’s strength should stop the current downside correction. From here, neutrality is our recommendation for today, watching the pair for more confirmations of an accurate path.
The trading range for today is among the major support at 1.3780 and the major resistance at 1.4170.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3910 | 1.3850 | 1.3800 | 1.3780 | 1.3750 |
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| Resistance | 1.3970 | 1.4040 | 1.4090 | 1.4150 | 1.4215 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
The pair successfully reached 61.8% Fibonacci, which is the awaited main target, at 1.5880 noticing the continued negative pressure affecting the pair, while momentum indicators show oversold signs which could pressure the pair to rebound to the upside. The MA 50 is forcing negative pressures on the pair, which may extend the intraday downside trend for today targeting 1.5675. We should pay attention that breaching 1.5935 could weaken the proposed decline and may indicate a possible upside reversal.
The trading range for today is among the major support at 1.5675 and the major resistance at 1.5995.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.5810 | 1.5755 | 1.5675 | 1.5645 | 1.5600 |
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| Resistance | 1.5880 | 1.5935 | 1.5995 | 1.6045 | 1.6120 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.5880 targeting 1.5675 and stop loss above 1.5995 might be appropriate | ||||
Japanese Yen (JPY)
Morning Report
The pair breached the minor upside channel’s support with a daily closing as shown above on the chart. This indicates a possible intraday downside move for today, targeting the critical support at 79.65. The MA 50 supports the proposed decline, while the pair should consolidate below 80.75 for our expectations to remain valid.
The trading range for today is among the major support at 78.20 and the major resistance at 81.00.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.
| Support | 79.65 | 79.00 | 78.20 | 77.70 | 77.00 |
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| Resistance | 80.45 | 81.00 | 81.50 | 81.75 | 82.20 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 80.45 targeting 79.00 and stop loss above 81.50 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
The pair is still trading within the sideways range shown above on the chart, noticing the strength of the support at 0.8325. Stochastic is gradually losing its upside momentum, while the MA 50 is forming good resistance keeping the negative pressure. Therefore, we see the likelihood for an intraday downside move, activated with the breach of the mentioned support targeting 0.8170. We should pay attention that breaching 0.8455 would extend the upside correction.
The trading range for today is among the major support at 0.8170 and the major resistance at 0.8500.
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 | 0.8110 | 0.8050 |
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| Resistance | 0.8400 | 0.8455 | 0.8480 | 0.8540 | 0.8605 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with the breach of 0.8325, targeting 0.8170 and stop loss above 0.0.8400 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair sharply inclined surpassing the retest level of the breached minor support –in red– and breaching 50% Fibonacci correction. Momentum indicators are overbought, which may cause fluctuations around the retest level of yesterday’s breached resistance between 0.9705 and 0.9695 before continuing the expected intraday upside trend for today, affected by the MA 50. Consolidation above 0.9645 is required for our expectations to remain valid.
The trading range for today is among the major support at 0.9565 and the major resistance at 0.9945.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9705 | 0.9625 | 0.9555 | 0.9500 | 0.9445 |
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| Resistance | 0.9770 | 0.9845 | 0.9915 | 0.9945 | 0.9970 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 0.9705 targeting 0.9845 and stop loss below 0.9620 might be appropriate today | ||||