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Technical Major Currencies
Written by article default Wednesday, 20 July 2011 09:42
Morning Report
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The bullishness yesterday was limited below 1.4205 most of the time, while we see that the downside trend’s possibility is still valid till now, where the pair is stable below the previously breached critical ascending support shown in green. Therefore, we keep our negative expectations and consolidation below 1.4150 should provide further confirmations. A four-hour closing above 1.4280 will delay our negative expectations, and negate the targets for today.
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 | 1.4110 | 1.4085 | 1.4040 | 1.3970 | 1.3910 |
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| Resistance | 1.4180 | 1.4205 | 1.4280 | 1.4325 | 1.4375 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair around 1.4175 and take profit in stages at (1.4085, 1.4040, and 1.3970) and stop loss with 4-hour closing above 1.4280 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair is still fluctuating below the neckline areas of our previous discussed classical head and shoulders top pattern as seen on the provided daily graph. We classify this fluctuation as a gathering momentum process in order to assist it to breach through the initial support areas around 1.6045, followed by the psychological level of 1.6000. SMA 50 has been retested yesterday and it succeeded in sending the pair to the downside. In result, we keep our bearish anticipations over intraday basis, supported by the negativity on Stochastic indicator. On the upside, only a break of 1.6250-1.6260 with a daily closing will delay the bearish classical scenario.
The trading range for today is among key support at 1.5880 and key resistance at 1.6310.
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 | 1.6045 | 1.6000 | 1.5935 | 1.5880 |
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| Resistance | 1.6140 | 1.6190 | 1.6225 | 1.6250 | 1.6310 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.6095 targeting 1.5880 and stop loss above 1.6260 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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In accordance with yesterday's scenario, the pair started to achieve a mild incline attempting to retest the previous broken horizontal support -turned into resistance- where the support of our caught descending triangle exists. The pair is gradually relieving RSI 14 and we believe that this technical process of relaxing momentum indicator will be done once the pair touches 79.55-79.90 areas before resuming the downtrend targeting 77.10-77.10 zones. It is worth noting that Ribbons lines -EMA 10 to 80- cover the bearishness as well.
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 |
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| Resistance | 79.30 | 79.55 | 79.80 | 80.05 | 80.65 |
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| 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
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We haven’t seen an obvious closing above 0.8250, and the pair is currently hovering closely below this important level. Consolidation below the mentioned level may support the downside trend; especially that Stochastic is attempting to turn into negativity. The previously mentioned level is the first target of the upside harmonic structure, and consolidation above this level may support the pair to move to the next target at 0.8350, while returning below 0.8195 could prove that the pair is unable to achieve more upside movement. In general, we hold onto our bearish intraday expectations with stability above 0.8250.
The trading range for today is among the major support at 0.8170 and the major resistance at 0.8350.
The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.
| Support | 0.8205 | 0.8195 | 0.8150 | 0.8110 | 0.8080 |
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| Resistance | 0.8250 | 0.8285 | 0.8350 | 0.8385 | 0.8420 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair with hourly closing below 0.8195 and take profit in two stages at 0.8080, 0.8010 and stop loss above 0.8250 OR buying the pair with 4-hour closing above 0.8250, targeting 0.8350, and stop loss with 4-hour closing below 0.8195 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
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The pair declined sharply yesterday, but still trading above 0.9400-45. The positive signs on Stochastic are weakening, and RSI trending lower; also we can see that yesterday’s closing was below the downside trend’s resistance at 0.9540. The technical conflict will control the pair’s movement as long as it is stable between 0.9400 and 0.9540; consolidation above 0.9540 shall return the positive expectations while stability below 0.9400 could eliminate the positive intraday outlook.
The trading range for today is among the major support at 0.9305 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 | 0.9485 | 0.9440 | 0.9400 | 0.9350 | 0.9305 |
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| Resistance | 0.9545 | 0.9600 | 0.9625 | 0.9680 | 0.9700 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with 4-hour closing above 0.9545 targeting 0.9770 and stop loss below 0.9400 might be appropriate | ||||