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Technical Major Currencies
Written by article default Thursday, 28 July 2011 08:07
Morning Report
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The red arrow shown above on the chart explains yesterday’s bearish candle which closed below 1.4490 and confirmed the bearish bat harmonic pattern. The pair then reversed to the downside towards the first target of the harmonic pattern at 1.4335 which represents 38.2% Fibonacci correction of the CD leg. Stochastic is within oversold areas, which may cause heavy fluctuations, but on the other hand, stability below 1.4415 with 4-hour closing could support the pair to breach 1.4335 to extend the downside move towards the minor support at 1.4275 then the second target of the harmonic pattern at 1.4215.
The trading range for today is among the major support at 1.4125 and the major resistance at 1.4535
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4335 | 1.4275 | 1.4215 | 1.4165 | 1.4125 |
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| Resistance | 1.4400 | 1.4460 | 1.4490 | 1.4515 | 1.4565 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair around 1.4400 and take profit in stages at (1.4335, 1.4275 and 1.4215) and stop loss with 4-hour closing above 1.4515 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Bearishly affected by our previous caught negative divergence, the pair declined below SMA 50 as seen on the provided four hour graph. Actually, this decline was needed to relieve momentum indicators. All what we need now is to a four hour closing above 76.4% retracement of CD leg for the bullish harmonic AB=CD pattern and above SMA 50 once more to make sure that the technical trip of reaching the extended technical targets of the harmonic pattern will continue; noting that yesterday's correction started at our detected technical obstacle of 88.6%. In the interim, areas of 1.6245-1.6250 should protect the pair from more downside actions. To recap, only a break of 1.6365 will assist bulls to dominate the market, while coming below 1.6245 with a four hour closing will threaten the bullish trend.
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 | 1.6365 | 1.6415 | 1.6445 | 1.6500 | 1.6550 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 1.6365 targeting 1.6545 and stop loss below 1.6240 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair is still moving steadily downwards after achieving a mild recovery. The consolidation may continue below Ribbons lines -EMA 10 to 80- which cover the bearishness. In result, we still see chances for reaching the previous detected technical objective of the descending triangle pattern which proved its efficiency during the past period. Dear reader, we remind you that we should watch the price behaviors around the target as a break of 77.10 will trigger a panic sell-off towards the extended technical objectives of the classical pattern, starting at the significant low of 76.40. Risk versus reward ratio remains too high for intraday traders.
The trading range for today is among key support at 76.40 and key resistance now at 79.55.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 76.40 remain intact.
| Support | 77.45 | 77.30 | 77.10 | 76.75 | 76.40 |
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| Resistance | 78.35 | 78.90 | 79.30 | 79.55 | 80.05 |
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| Recommendation | Based on the charts and explanations above, we believe that risk versus reward ratio is too high; thus, we prefer staying aside. | ||||
Swiss Franc (CHF)
Morning Report
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The potential reversal zone of the bullish deep crab harmonic pattern at 0.8015 is preventing the pair from extending the bearishness. Consolidation above this level should keep our previous expectations valid, and we expect an upside move during the coming period unless we have consecutive daily closings below 0.7920.
The trading range for today is among the major support at 0.7830 and the major resistance at 0.8250.
The short-term trend is to the upside with steady weekly closing above 0.7920 targeting 0.8930.
| Support | 0.8000 | 0.7965 | 0.7920 | 0.7875 | 0.7830 |
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| Resistance | 0.8080 | 08110 | 0.8150 | 0.8195 | 0.8205 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair with around 0.8015, targeting 0.8250, and stop loss with daily closing below 0.7920 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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Yesterday, the pair rebounded sharply to the upside, where the level of 0.9400 proved its strength. Therefore, the bullish AB=CD harmonic pattern is ideal and continues to affect the pair. The pattern’s first target is around 0.9550, which represents 38.2% Fibonacci correction of the CD leg. Our positive expectations remain valid, but negativity on Stochastic could force the pair to fluctuate with correctional movements.
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 | 0.9470 | 0.9445 | 0.9400 | 0.9385 | 0.9350 |
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| Resistance | 0.9520 | 0.9550 | 0.9600 | 0.9625 | 0.9680 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 0.9470 and take profit in stages at (0.9550, 0.9600 and 0.9635) and stop loss with 4-hor closing below 0.9400 might be appropriate. | ||||