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Technical Cross
Written by article default Wednesday, 13 July 2011 08:05
Morning Report
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Recording 124.80 as a low of the Asian session has proved the efficiency of our caught bearish harmonic butterfly pattern which we followed since the price was 139.95 as this low was very close to our proposed technical target of the bearish journey of reaching the extended targets at 123.95 -161.8% projection of CD leg-. Anyway, Stochastic started to give off signs of oversold case; thus, we may witness more fluctuation today before moving downwards once more towards 161.8% level since Vortex is still reflecting the strength of the bearish trend inside the descending channel. Breaching through 125.80 will be a strong catalyst that will send the pair rapidly to the target.
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 | 125.50 | 125.00 | 124.35 | 123.95 | 123.10 |
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| Resistance | 126.70 | 127.60 | 128.40 | 129.40 | 130.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 127.20 targeting 123.95 and stop loss above 129.45 might be appropriate. | ||||
Euro vs. Japanese Yen (EUR / JPY)
Morning Report
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The pair succeeded in touching yesterday's proposed technical objective at 109.50 twice as it visited it yesterday and also today during the Asian session. Now, Stochastic started to reflect oversold case; thus, it may push the pair mildly upwards before resuming the downside wave towards the PRZ of our efficient BAT pattern at 88.6% of XA leg around 108.50 zones. Note that, if 110.50 zones fell easily, we will witness acceleration towards 109.50 once more followed by the technical objective. Conversely, areas between 112.95 and 113.15 should hold to protect the bearish direction.
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 | 110.50 | 109.45 | 108.55 | 107.80 | 107.15 |
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| Resistance | 111.60 | 111.90 | 112.40 | 112.80 | 113.15 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 111.60 targeting 109.50 and stop loss above 113.25 might be appropriate. | ||||
Euro vs. Great British Pound (EUR / GBP)
Morning Report
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We added EMA 55 –colored in blue- to our daily harmonic studies that proved its bearish effect since the opening of this week and we noticed that the moving average collection of SMA 20 and EMA 55 is covering the movements as well. Our daily graph offers a technical story of a bearish harmonic AB=CD pattern where the second technical target of the CD leg was breached earlier at 0.8860 zones. Thereby, we are witnessing a case of achieving extensions for the harmonic wave towards 100% retracement of CD leg at 0.8720 and probably we will visit 127.2% projection later at 0.8625. Momentum and trend indicators are definitely negative for the time being. Consequently, we keep our bearish predications intact over intraday basis.
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 around 0.8820 targeting 0.8720 and stop loss above 0.8900 might be appropriate. | ||||
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