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Technical Major Currencies
Written by article default Friday, 15 July 2011 08:01
Morning Report
The pair declined to trade around 38.2% Fibonacci correction shown above, while Stochastic provides upside signals shown on the daily time frame. From here, our expectations for an intraday upside move remain valid for today, targeting the resistance for the descending correction channel at 1.4455, a breach of which will open the door for the pair to resume the general upside trend. Consolidation below 1.4150 could delay the awaited targets.
The trading range for today is among the major support at 1.4010 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 | 1.4090 | 1.4010 | 1.3970 | 1.3915 |
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| Resistance | 1.4215 | 1.4285 | 1.4310 | 1.4395 | 1.4455 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4150 targeting 1.4285 and stop loss below 1.4090 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
The pair is trading above the retest area menntioned yesterday at 1.6125, while the momentum indicators show overbought signs explaining the difficulties of continuing the awaited incline. In general, consolidation above the mentioned level and the support provided by the MA 50, are factors behind our expectations for an intraday upside movement initially targeting 1.6240 –the downside correction channel’s resistance- we should observe the pair’s behavior near this level, where a breach of which will open the way for the pair to return to the general upside trend, and to settle for the downside correction.
The trading range for today is among the major support at 1.6000 and the major resistance at 1.6335.
The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.
| Support | 1.6125 | 1.6045 | 1.5995 | 1.5945 | 1.5880 |
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| Resistance | 1.6180 | 1.6240 | 1.6305 | 1.6380 | 1.6410 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.6125 targeting 1.6245 and stop loss below 1.6045 might be appropriate today | ||||
Japanese Yen (JPY)
Morning Report
The pair is still trading between the previously breached critical support at 79.65 and the general downside trend’s threshold, which is the breached resistance for the main downside channel that turned into a support at 78.05. The recent breach of 79.65 is a strong negative factor that supports our expectations for the downside tendency to remain valid over intraday basis supported by the MA 50, and awaiting the attack of 78.05 to open the door for the pair to resume the general downside trend. Consolidation below 79.65 is required for our expectations to remain valid.
The trading range for today is among the major support at 77.00 and the major resistance at 80.00.
The short-term trend is to the downside as far as 89.35 remains intact with targets at 76.00.
| Support | 79.00 | 78.05 | 77.70 | 77.00 | 76.50 |
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| Resistance | 79.65 | 80.00 | 80.60 | 81.00 | 81.50 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 79.65 targeting 78.05 and stop loss above 80.60 might be appropriate today . | ||||
Swiss Franc (CHF)
Midday Report
The pair is trading within narrow levels below the correction shown yesterday at 0.8170, while Stochastic shows negative signals on the four-hour basis. These factors have driven us to expect an intraday downside move, with targets at the psychological barrier of 0.8000. a breach of 0.8170 could delay the awaited targets.
The trading range for this week is among the major support at 0.7960 and the major resistance at 0.8235.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.7900.
| Support | 0.8110 | 0.8050 | 0.8000 | 0.7960 | 0.7900 |
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| Resistance | 0.8170 | 0.8235 | 0.8285 | 0.8325 | 0.8400 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8170 targeting 0.8000 and stop loss above 0.8285 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
The pair continues the attempts to breach the critical support at 0.9565, while yesterday’s fluctuations unloaded the upside momentum on Stochastic as shown on the chart. This fact in addition to the resistance provided by MA 50 support our expectations for an intraday downside movement, which requires a clear breach of 0.9565 and then 0.9530, and consolidation below 0.9660.
The trading range for today is among the major support at 0.9400 and the major resistance at 0.9770.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9565 | 0.9530 | 0.9500 | 0.9445 | 0.9400 |
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| Resistance | 0.9625 | 0.9660 | 0.9700 | 0.9770 | 0.9845 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with hourly closing below 0.9565 targeting 0.9400 and stop loss above 0.9665 might be appropriate today | ||||