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Technical Major Currencies
Written by article default Thursday, 04 August 2011 08:53
EuroMorning Report
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By examining the hourly interval, we will find that the pair is declining, but is still stable above the B point bottom of the bullish AB=CD harmonic pattern. The pair is also stable above the pattern’s first target, which represents 38.2% Fibonacci correction of the CD leg at 1.4260. Therefore, we expect the upside move to return today, and also we expect a possible retest of 1.4335. A breach of 1.4385, which represents 78.6% Fibonacci correction of the CD leg, we could see the targets extend toward point C (the complete correction of the CD leg) at 1.4455. Consolidation above 1.4150 is required, while stability above 1.4215 is more preferable.
The trading range for today is among the major support at 1.4035 and the major resistance at 1.4425
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4215 | 1.4150 | 1.4125 | 1.4070 | 1.4035 |
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| Resistance | 1.4335 | 1.4385 | 1.4400 | 1.4425 | 1.4455 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4260 and take profit in stages at 1.4335, 1.4385 and 1.4455 and stop with 4-hour closing below 1.4215 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
Yesterday's attempt to re-attack 88.6% Fibonacci retracement of CD leg for the bullish harmonic AB=CD pattern has failed as we can see how the pair moved sharply downwards once again attacking 76.4% aggressively. A drop below our previous indicated support of 1.6250 is needed to make sure that it will not reach more extended targets above 88.6% of CD leg. At the same time, RSI 14 started to show negative tendency that may assist the pair in breaching the aforesaid solid support. Ultimately, the eventual downside targets will be pointing at 1.5960; noting that, areas of 88.6% retracement of CD leg should act as a ceiling to protect any bearish movements.
The trading range for today is among key support at 1.6075 and key resistance at 1.6630.
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 | 1.6310 | 1.6250 | 1.6225 | 1.6190 | 1.6075 |
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| Resistance | 1.6420 | 1.6500 | 1.6550 | 1.6580 | 1.6630 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.6250 targeting 1.6025 and stop loss above 1.6420 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
From our yesterday's detected support –entry point- at 77.10 to the suggested technical objective at 79.20, the pair soared, where it is currently approaching the key resistance-previous broken support- of 79.55. Actually, we will use the daily time scale today, where we can see the positivity appearing on momentum indicator-RSI 14- and the obvious bullishness appearing on trend indicator- AROON- while SMA 50 –currently valued at 79.80- becomes very close. Hence, we hold onto our bullish predictions over intraday basis and a break of 79.55 will confirm the present aggressive recovery. Technical targets are seen around 61.8% Fibonacci retracement of the downside rally from 85.50 to 76.25 zones since 23.6% has been penetrated and 38.2% is under attack.
The trading range for today is among key support at 77.10 and key resistance now at 81.45.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.
| Support | 78.90 | 78.60 | 77.90 | 77.40 | 77.10 |
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| Resistance | 79.55 | 80.05 | 80.60 | 81.10 | 81.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 79.55 targeting 81.95 and stop loss below 77.75 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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As we expected, the pair rebounded to the upside and is currently stable above the descending channel’s main support. This will be accompanied with attempts to consolidating above the middle line of Bollinger Bands, while the RSI is bullish and attempting to breach the 50-point level. These positive signals make us expect the upside movement to extend today, while this bullish movement required consolidation with a daily closing above 0.7665 and with 4-hour closing above 0.7610
The trading range for today is among the major support at 0.7430 and the major resistance at 0.8015.
The short-term trend is to the upside with steady weekly closing above 0.7665 targeting 0.8795.
| Support | 0.7750 | 0.7700 | 0.7665 | 0.7610 | 0.7580 |
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| Resistance | 0.7830 | 0.7875 | 0.7920 | 0.7965 | 0.8015 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 0.7750 targeting 0.8015 and stop loss with a daily closing below 0.7665 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair inclined and is stable now above 61.8% Fibonacci correction of the CD leg of bullish AB=CD pattern, harmonically wise, this situation should support the pair to retest 78.6% Fibonacci correction at 0.9700 (which is our target since the past week). Stochastic could force some fluctuations during the upside journey, but the RSI continues to show positivity. A breach of 0.9700 could force the pair to retest 0.9735 and maybe 0.9780.
The trading range for today is among the major support at 0.9490 and the major resistance at 0.9880.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9635 | 0.9600 | 0.9545 | 0.9520 | 0.9490 |
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| Resistance | 0.9680 | 0.9700 | 0.9780 | 0.9845 | 0.9880 |
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| Recommendation | Based on the charts and explanations above our opinion is buying the pair around 0.9635 and take profit in stages at (0.9735 and 0.9780) and stop loss with 4-hor closing below 0.9545 might be appropriate. | ||||
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