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Technical Major Currencies
Written by article default Friday, 22 July 2011 08:27
Morning Report
Returning to the previous reports, we can see that the upside possibility strengthened after breaching 1.4285 yesterday, where this level was the B top of the Gartley Harmonic pattern. Areas of 1.4420 and 1.4490 are considered the PRZ for the suggested bearish pattern. The general move might reverse to the upside, yet momentum indicators are within overbought areas and also the bearish harmonic structure support the likelihood for a downside move today which requires stability below 1.4490.
The trading range for today is among the major support at 1.4150 and the major resistance at 1.4565.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4330 | 1.4265 | 1.4215 | 1.4165 | 1.4110 |
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| Resistance | 1.4420 | 1.4450 | 1.4490 | 1.4535 | 1.4565 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 1.4400 targeting 1.4330 and 1.4265 and stop loss with four-hour closing above 1.4490 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair has soared yesterday, breaching through the pivotal resistance areas of 1.6250. This incline is to threat the previous suggested head and shoulders top pattern discussed in the weekly report, but when we put the four hour time graph under the harmonic microscope, we will find that a bullish harmonic AB=CD pattern has been formed from 1.6745 to 1.5780 as seen on the image. This harmonic sequence succeeded in sending it to approach the first extended technical objective at 76.4% of CD leg. We are not completely sure if the pair will penetrate this sensitive level around 1.6365 to achieve more extended waves or it will accede to the obvious overbought sign appearing on RSI 14 as the pair always acts in response to RSI 14 in both overbought and oversold cases. Consequently, we will be neutral over intraday basis until we see whether the pair will hit the initial 76.4% retracement of CD leg or the bearishness will come back into focus.
The trading range for today is among key support at 1.6075 and key resistance at 1.6550.
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 | 1.6250 | 1.6225 | 1.6190 | 1.6125 | 1.6075 |
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| Resistance | 1.6355 | 1.6380 | 1.6440 | 1.6500 | 1.6550 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Japanese Yen (JPY)
Morning Report
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The pair continued moving downwards, achieving a negative daily closing below 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. Those cluster Fibonacci zones might cause fluctuation since RSI is in need for relaxation, 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-. Our bearish outlook and our detected technical objective are based on the previous explained descending triangle which proved its efficiency during this week.
The trading range for today is among key support at 77.10 and key resistance now at 79.80.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.
| Support | 78.20 | 77.85 | 77.45 | 77.10 | 76.40 |
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| Resistance | 78.90 | 79.30 | 79.55 | 79.80 | 80.05 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 78.90 targeting 77.15 and stop loss above 80.15 might be appropriate. | ||||
Swiss Franc (CHF)
Moring Report
The pair declined responding to SMA 50 and settled for the first target of the bullish harmonic Crab Patter at 0.8250. Currently, trading is stable below 0.8195 and that will keep the intraday negative pressure on the pair today. Stability above 0.8250 will negate the bearish expectations and carry the pair towards the second harmonic target at 0.8350.
The trading range for today is among the major support at 0.8010 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 | 0.8150 | 0.8110 | 0.8080 | 0.8010 | 0.7970 |
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| Resistance | 0.8195 | 0.8205 | 0.8250 | 0.8285 | 0.8350 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.8195 targeting 0.8080 and 0.8010 and stop loss with four-hour closing above 0.8250 OR buying the pair with four-hour closing above 0.8250 targeting 0.8350 and stop loss with four-hour closing below 0.8195 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
The pair stabilized around 0.9445 and this level was supposed to push the pair to the upside yet we did not see the upside reversal yet. Also, steady daily closing below the main resistance for the downside wave for three consecutive days makes the situation more critical. We still see chances for the upside correction yet the breach of 0.9400 and stability below it will negate those expectations and support the resumption of the downside wave.
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 charts and explanations above we recommend buying the pair around 0.9445 targeting 0.9680 and stop loss below 0.9400 might be appropriate | ||||