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Technical Major Currencies
Written by article default Thursday, 21 July 2011 13:17
Midday Report
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The pair is trading negatively after areas of 1.4285 proved the strength and prevented the formation of Gartly harmonic pattern –mentioned in our previous report-. Moreover, the sharp bearishness also breached the ascending channel’s critical support at 1.4205 shown above, the downside trend is obvious now, and we expect negative trading, especially if the pair stabilizes below 1.4150. But, Stochastic is within oversold areas which could cause heavy fluctuations during the suggested downside wave.
The trading range for today is among the major support at 1.4040 and the major resistance at 1.4445.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4150 | 1.4110 | 1.4080 | 1.4040 | 1.3970 |
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| Resistance | 1.4205 | 1.4285 | 1.4325 | 1.4375 | 1.4420 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair below 1.4205, targeting and take profit in stages at (1.4110, 1.4040 and 1.3970) and stop loss with four-hour closing above 1.4285 might be appropriate today | ||||
Great British Pound (GBP)
Midday Report
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The four hour chart is presently offering two new negative technical signs that argue us to keep our bearish predictions intact for the rest of the day:
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The negative divergence which was formed after bouncing aggressively from 1.6200 zones.
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The breakout below momentum uptrend line –RSI 14- support.
All what we need now is a decisive breakout below 1.6125 zones to make sure that the bearishness will continue inside our detected descending channel.
The trading range for today is among key support at 1.5935 and key resistance at 1.6380.
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 | 1.6125 | 1.6075 | 1.6045 | 1.6000 | 1.5935 |
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| Resistance | 1.6190 | 1.6225 | 1.6250 | 1.6310 | 1.6355 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 1.6125 targeting 1.5935 and stop loss above 1.6265 might be appropriate. | ||||
Japanese Yen (JPY)
Midday Report
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Some kind of bearish tendency appeared on the graph after touching the morning suggested resistance around 79.00 zones. The price behaviors are very calm; thus, we will hold onto our morning expectations intact for the rest of the day; noting that, there is a chance for fluctuations due to the oversold sign on RSI 14. For more details about the classical formation seen on the image, we recommend reviewing the weekly report.
The trading range for today is among key support at 77.10 and key resistance now at 80.05.
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 | Our morning expectations remain valid. | ||||
Swiss Franc (CHF)
Midday Report
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The pair is narrowly trading between the support at 0.8205 and the resistance at 0.8250, but stable below the MA 50, and affected by the bearishness inside the descending channel. But, Crab harmonic pattern –shown above- requires consolidation below 0.8250 to keep the downside trend valid, where a breach of which could push the pair towards the second target of the harmonic pattern at 0.8350. Therefore, we remain neutral for today until a breach of 0.8195 confirms the bearishness, or a breach of 0.8250 confirms bullishness.
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 1-hour closing below 0.8195, and take profit in stages at 0.8080 and 0.8010 and stop loss with 4-hour closing 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 today | ||||
Canadian Dollar (CAD)
Midday Report
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The pair rebounded to the upside form 0.9445, and may extend the bullishness to trade above 0.9545, where consolidation above this level should confirm obvious positivity. Our expectations remain as they are for now, and fail with the breach of 0.9445 and 0.9400.
The trading range for today is among the major support at 0.9305 and the major resistance at 0.9680.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9440 | 0.9400 | 0.9350 | 0.9305 | 0.9285 |
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| Resistance | 0.9485 | 0.9545 | 0.9600 | 0.9625 | 0.9680 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.9445, targeting 0.9680 and stop loss below 0.9400 might be appropriate today | ||||
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