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Technical Cross
Written by article default Tuesday, 12 July 2011 09:45
Morning Report
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Respecting our bearish harmonic scenario, the pair collapsed breaching the Fibonacci projection level of 127.2% for the CD leg of the bearish harmonic butterfly pattern at 127.40 as seen on the provided daily graph. The chart is still showing signs of weakness since Vortex -trend indicator- became more negative; whilst Stochastic is moving obviously to the downside. Consequently, we will continue obeying the harmonic rules, looking forward to see a visit for 161.8% projection of CD leg at 123.95 zones, noting that the aforesaid level meets the support line of the descending channel that dominated the movements from D point and this is considered to be a classical confirmation for our successful harmonic story started at 139.95 zones.
The trading range for today is among key support at 123.95 and key resistance at 131.05.
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 | 126.70 | 125.50 | 125.00 | 124.35 | 123.95 |
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| Resistance | 127.60 | 128.40 | 129.40 | 130.00 | 130.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 127.40 targeting 123.95 and stop loss above 129.65 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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Yesterday's panic sell-off sent the pair below 61.8% Fibonacci retracement of XA leg for the bigger harmonic pattern over daily basis after achieving the extreme technical objectives of the smaller pattern over four hour graph -check the previous and weekly report for more details about the four hour pattern-. Now, the daily studies suggest a downside rally towards 88.6% Fibonacci retracement of XA leg to complete the BAT pattern according to the above seen Fibonacci rhythmic connecting the movements from the significant low of 106.55. Our bearish harmonic overview over intraday and short term basis is supported by the negativity on momentum and trend indicators. Dear reader, breaching 110.50 -76.4% level- will clear the path towards our technical objectives.
The trading range for today is among key support at 107.80 and key resistance now at 114.75.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
| Support | 111.15 | 110.50 | 109.45 | 108.55 | 107.80 |
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| Resistance | 112.10 | 112.40 | 112.80 | 113.15 | 113.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 112.00 targeting 109.50 and stop loss above 113.95 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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The pair succeeded in penetrating the harmonic trend line connecting between A, C points and their extensions for the bearish harmonic AB=CD pattern as seen on the provided daily graph. This breakout has opened the door up for more descending movements over intraday basis where the pair has started to visit the extended technical objectives of the entire harmonic formation. The full correctional level or 100% Fibonacci retracement of the CD leg is now under our technical microscope since 61.8% at 0.8860 and 76.4% at 0.8805 have fallen already. RVI -momentum indicator- and AROON –trend indicator- solidify our constructive harmonic scenario.
The trading range for today is among the key support at 0.8675 and key resistance now at 0.8925.
The general trend over short term basis is to the upside, targeting 1.0000 as far as areas of 0.8420 remain intact.
| Support | 0.8760 | 0.8730 | 0.8715 | 0.8700 | 0.8675 |
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| Resistance | 0.8820 | 0.8850 | 0.8885 | 0.8900 | 0.8925 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 0.8830 targeting 0.8720 and stop loss above 0.8915 might be appropriate. | ||||
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