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Technical Cross
Written by article default Thursday, 14 July 2011 09:09
Morning Report
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As planned, the pair succeeded in retesting the previous broken extended level of 127.2% of the CD leg for the bearish harmonic structure from below. Now, signs of exhaustion started to appear on the smaller time frames; thus, we believe that the upside correction from the trough of 124.70 has lost its steam and the pair is on its way to reach the Fibonacci projection level of 161.8% over upcoming sessions. Note that the bearish channel is the most accurate technical factor appearing on our daily graph that signals resumption for the bearish trend started from 139.95.
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 | 126.30 | 125.50 | 125.00 | 124.35 | 123.95 |
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| Resistance | 127.60 | 128.40 | 129.40 | 130.00 | 131.10 |
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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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The solid resistance -previous support- of 61.8% retracement for XA leg of our suggested bearish BAT pattern was retested during the Asian session as seen on the provided daily chart. Classically speaking, this level should add negative pressure on the pair which still has ideal downside targets to be reached at 108.50 -88.6% Fibonacci- zones where the PRZ of the pattern should exist. Henceforth, we hold onto our bearish anticipations over intraday basis and all what we need now is a sustained breakout below 111.60 zones to make sure that the major bearish trend will continue.
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 | 111.05 | 110.50 | 109.45 | 108.55 | 107.80 |
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| Resistance | 112.40 | 112.80 | 113.15 | 113.60 | 114.25 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 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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After testing EMA 55 which met the previous broken harmonic trend line, the royal pair moved downwards again as we suggested yesterday. Now, SMA 20 and EMA 55 collection are acting as a ceiling for the present trading; thus, the bearishness may continue over intraday basis towards 100% of CD leg for the efficient bearish harmonic AB=CD pattern at 0.8720 zones where a break of which will trigger a panic sell-off towards 127.2% projection of the aforesaid leg at 0.8625. Note that 61.8% of CD leg resides at 0.8860 areas and as far as it holds, the bearishness will continue over coming sessions.
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 | 0.8780 | 0.8760 | 0.8730 | 0.8715 | 0.8700 |
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| Resistance | 0.8850 | 0.8885 | 0.8900 | 0.8925 | 0.8950 |
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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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