Members login
Technical Major Currencies
Written by article default Tuesday, 19 July 2011 09:15
Morning Report
Yesterday, the upside move was expected, as we expected the pair to reach 1.4150-70 before reversing to the downside again. Stochastic over daily basis is still biased negatively as shown on the chart above, while the pair approached the retest of the mentioned resistance. Consolidation below 1.4205 is required for our negative expectations to remain valid, as the pair forms the CD leg of the proposed butterfly pattern as shown above.
The trading range for today is among the major support at 1.3910 and the major resistance at 1.4325.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4085 | 1.4040 | 1.3970 | 1.3910 | 1.3880 |
|
|
|||||
| Resistance | 1.4150 | 1.4205 | 1.4275 | 1.4235 | 1.4375 |
|
|
|||||
| Recommendation | Based on the charts and explanations above we recommend selling the pair around 1.4150 and take profit in stages at (1.4085, 1.4040, and 1.3970) and stop loss with four-hour closing above 1.4270 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
Click on the image for a larger view
 |
The bearish harmonic structure formed on Stochastic of the daily studies has been completed via achieving obvious negative crossover. Henceforth, our outlook remains bearish based on the major reversal classical pattern discussed earlier; whilst trading remains negatively pressured by the moving averages collection of SMA 50 and SMA 100 as seen on the provided daily graph. Breaching through the psychological levels of 1.6000 will accelerate the awaited bearish wave, chiefly targeting 1.5880, followed by 1.5780. On the upside, only a break of 1.6250-1.6260 with a daily closing gives us reason for concern.
The trading range for today is among key support at 1.5880 and key resistance at 1.6250.
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 | 1.6045 | 1.6000 | 1.5935 | 1.5880 | 1.5855 |
|
|
|||||
| Resistance | 1.6105 | 1.6140 | 1.6190 | 1.6225 | 1.6250 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6120 targeting 1.5935 and stop loss above 1.6260 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
Click on the image for a larger view
 |
The pair has been trapped within a very tight range since the opening of this week; whilst yesterday's candlesticks patterns reflected a case of indecision due to the oversold sign on RSI 14. Consequently, we still believe that there is a chance for retesting the previous broken horizontal support of the continuation classical pattern -descending triangle- before resuming the downtrend targeting 77.10-77.10 zones. Vortex supports our constructive classical outlook.
The trading range for today is among key support at 77.45 and key resistance now at 80.65.
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 | 78.20 | 77.85 | 77.45 | 77.10 |
|
|
|||||
| Resistance | 79.30 | 79.55 | 79.80 | 80.05 | 80.65 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 79.55 targeting 77.45 and stop loss above 80.90 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The pair’s upside momentum started to weaken from areas of 0.8195, which is normal due to the sensitivity and importance of that level. But, we should closely observe the pair’s movement, where a four-hour closing above the mentioned level could delay the downside wave for a while, but trading below 0.8305-50 keeps our bearish expectations valid even if the pair fluctuates sharply. Stochastic provides negative signs, and RSI is unable to breach 50 points level, which confirms our expectations.
The trading range for today is among the major support at 0.8070 and the major resistance at 0.8500.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8150 | 0.8110 | 0.8080 | 0.8010 | 0.7970 |
|
|
|||||
| Resistance | 0.8195 | 0.8210 | 0.8250 | 0.8285 | 0.8350 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8195 and take profit in two stages at 0.8080, 0.8010 and stop loss with four-hour closing above 0.8250 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair is unable to take a clear upside trend, but we can see that it is stable above the downside trend’s critical resistance levels, which turned into support. Stochastic is providing a positive crossover signaling that 0.9545 level is capable of pushing the pair to the upside once again. Consolidating above 0.9440 is required for our positive expectations to prevail.
The trading range for this week 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 | 0.9545 | 0.9500 | 0.9440 | 0.9400 | 0.9350 |
|
|
|||||
| Resistance | 0.9600 | 0.9625 | 0.9680 | 0.9700 | 0.9770 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is buying the pair with around 0.9545 targeting 0.9770 and stop loss below 0.9400 might be appropriate | ||||