Members login
Technical Major Currencies
Written by article default Monday, 18 July 2011 08:58
Weekly Report 18/07 – 22/ 07/ 2011
Click on the image for a larger view
We are facing a suggested harmonic pattern, which could turn into a butterfly harmonic pattern with the first potential reversal zone at 1.3765 and Stochastic provided a negative signal showing the possibility of reaching this point indeed. This pattern remains strong as long as the pair is trading below 1.4150-70, where trading above this level will weaken the pattern. Therefore, we expect a downside trend to control the pair’s movement for this week, and requires consolidating below the mentioned levels.
The trading range for this week is among the major support at 1.3765 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 | 1.4040 | 1.3970 | 1.3910 | 1.3880 | 1.3840 |
|
|
|||||
| Resistance | 1.4150 | 1.4205 | 1.4280 | 1.4320 | 1.4375 |
|
|
|||||
| Recommendation | Based on the charts and explanations above we recommend selling the pair around 1.4150 targeting 1.3910 and stop loss above 1.4280 might be appropriate this week | ||||
Great British Pound (GBP)
Weekly Report 18/07 – 22/ 07/ 2011
Click on the image for a larger view
 |
The daily studies offers a potential classical head and shoulders top pattern and when we have a deeper look at provided graph, we will find that there are two more negative classical technical factors that might send the pair to the downside over upcoming sessions as follows:
- The breakout below the uptrend line that carried the movements from 1.4225 recorded on May, 20, 2010 to the significant peak of 1.6745.
- The resistance offered from SMA 50 and SMA 100.
Henceforth, we classify the bounce from 1.5780 to 1.6200 zones as a retesting action before resuming the downtrend that started at 1.6745. Ultimately, Stochastic is on its way to crossover negatively solidifying our constructive bearish anticipations.
The trading range for this week is among key support at 1.5780 and key resistance at 1.6440.
The general trend over short term basis is to the downside targeting 1.4225 as far as areas of 1.6875 areas remain intact.
| Support | 1.6075 | 1.5935 | 1.5825 | 1.5780 | 1.5710 |
|
|
|||||
| Resistance | 1.6190 | 1.6250 | 1.6310 | 1.6375 | 1.6440 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6155 targeting 1.5880 and stop loss above 1.6350 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 18/07 – 22/ 07/ 2011
Click on the image for a larger view
 |
It seems that the pair has finished the descending triangle construction as seen on the provided daily graph. Actually, there is a technical obstacle that prevents the pair from reaching the scientific technical target of the classical shape at 77.10 zones. This obstacle resides around 78.55-78.65 zones which represent cluster support, consisting of 76.4% retracement of the rally from 76.40 to 85.50 and 23.6% Fibonacci of the bearish wave from 85.90 to the aforesaid trough. In the interim, RSI 14 reflects clear oversold case and it may send the pair mildly upwards to retest the broken support of the classical pattern before resuming the bearishness towards 77.10 supported by stability below Ribbons lines -EMA 10 to 80- and the negativity on Vortex indicator -trend indicator-. Note that breaching through 80.90 zones will clarify that the bearishness is limited around the initial support of 78.50.
The trading range for this week is among key support at 76.40 and key resistance now at 82.30.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 76.40 remain intact.
| Support | 78.65 | 77.85 | 77.45 | 77.00 | 76.40 |
|
|
|||||
| Resistance | 79.55 | 80.05 | 80.65 | 81.15 | 82.30 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 79.55 targeting 77.30 and stop loss above 81.00 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 18/07 – 22/ 07/ 2011
Click on the image for a larger view
A descending channel is controlling the pair’s movement, and despite the fact that Stochastic is oversold, the pair is not responding and continues to trade negatively since breaching 0.8305. There is a support around 0.8010, which represents the target after breaching 0.8305. In general, we expect a downside trend for this week and requires stability below 0.8195 to prevail.
The trading range for this week is among the major support at 0.7920 and the major resistance at 0.8600.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8110 | 0.8050 | 0.8010 | 0.7970 | 0.7920 |
|
|
|||||
| Resistance | 0.8195 | 0.8255 | 0.8305 | 0.8350 | 0.8440 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8195 targeting 0.8010 and stop loss above 0.8255 might be appropriate this week | ||||
Canadian Dollar (CAD)
Weekly Report 18/07 – 22/ 07/ 2011
Click on the image for a larger view
The pair is consolidating at the previously breached resistance at 0.9530 as shown above. Stability above this level, support our expectations for a likely upside move for this week. Stochastic supports our expectations, but on the other hand, the MA 50 around 0.9680 is a primary obstacle against the suggested upside move. Consolidation above 0.9440 –shown above- keeps the suggested upside move valid.
The trading range for today is among the major support at 0.9350 and the major resistance at 0.9970.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9545 | 0.9500 | 0.9440 | 0.9400 | 0.9350 |
|
|
|||||
| Resistance | 0.9625 | 0.9680 | 0.9700 | 0.9770 | 0.9810 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is buying the pair with around 0.9545 targeting 0.9810 and stop loss below 0.9445 might be appropriate this week. | ||||
|
