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Technical Major Currencies
Written by article default Friday, 05 August 2011 11:23
EuroMidday Report
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In addition to the bullish Three Drive harmonic pattern, and the upside rebound from 88.6% Fibonacci correction of the CD leg of the Bat harmonic pattern –for explanation check our previous report- we can recognize another bullish Bat harmonic pattern as shown above. The pattern’s legs and corrections are ideal according to the pattern’s technical rules. The pattern’s potential reversal zone is at 1.4070 prevented the bearishness from extending further. Therefore, we keep our positive expectations valid for today that require 4-hour closing above 1.4015 to prevail.
The trading range for today is among the major support at 1.3870 and the major resistance at 1.4415.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4125 | 1.4070 | 1.4035 | 1.4015 | 1.3970 |
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| Resistance | 1.4180 | 1.4205 | 1.4255 | 1.4300 | 1.4360 |
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| Recommendation | Our expectations remain valid | ||||
Great British Pound (GBP)
Midday Report
The pair is still battling the neckline area for our suggested head and shoulders top pattern. This neckline is valued at the pivotal support of 1.6250 and thus; we witnessed a slight upside recovery during the previous session. But, it is worth noting that SMA 50 -colored in red- succeeded in pushing the pair once more to the downside. We hold onto our bearish anticipations for the rest of the day, but not before beating 1.6250 as well.
The trading range for today is among key support at 1.5935 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 | 1.6225 | 1.6145 | 1.6070 | 1.6000 | 1.5935 |
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| Resistance | 1.6310 | 1.6365 | 1.6420 | 1.6500 | 1.6550 |
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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 1.6425 might be appropriate. | ||||
Japanese Yen (JPY)
Midday Report
The pair is achieving normal and acceptable consolidation after yesterday's panic price actions. It is clear on our provided chart that the pair is stable above 38.2% Fibonacci of CD leg for our efficient bullish harmonic pattern, discussed yesterday. Hence, we still see chances for re-attacking 61.8% Fibonacci one more. A break of 61.8% at 79.55 will weaken the resistance of 76.4% and may send the pair higher above the harmonic resistance line, connecting A,C points and their extensions. On the downside, areas of 77.10-76.95 should hold to protect our outlook.
The trading range for today is among key support at 76.40 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 | 78.45 | 77.90 | 77.40 | 77.10 | 76.40 |
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| Resistance | 79.15 | 79.80 | 80.25 | 80.50 | 81.05 |
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| Recommendation | Our morning expectations remain valid. | ||||
Swiss Franc (CHF)
Midday Report
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The pair continues to trade between the lower line and the middle line of Bollinger Bands, in addition, the level of 0.7665 has stopped the bearishness. Stochastic is positive, while the RSI is turning positive. These facts drive us to hold onto our morning expectations confirmed with stability above 0.7730.
The trading range for today is among the major support at 0.7430 and the major resistance at 0.7920.
The short-term trend is to the upside with steady weekly closing above 0.7665 targeting 0.8795.
| Support | 0.7665 | 0.7620 | 0.7590 | 0.7550 | 0.7475 |
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| Resistance | 0.7730 | 0.7790 | 0.7830 | 0.7875 | 0.7920 |
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| Recommendation | Our expectations remain valid | ||||
Canadian Dollar (CAD)
Midday Report
After the pair settle for 0.9780, it rebounded to the upside again approaching the first extended target, which represents 127.2% Fibonacci correction of the CD leg of the bullish AB=CD pattern. But, momentum indicators are against our positive expectations, and caution is needed. Therefore, we will stay neutral today despite our positive expectations due to the high risk-to-return ratio.
The trading range for today is among the major support at 0.9635 and the major resistance at 0.9910.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9780 | 0.9735 | 0.9700 | 0.9680 | 0.9635 |
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| Resistance | 0.9845 | 0.9880 | 0.9910 | 0.9945 | 0.9970 |
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| Recommendation | Neutrality is our recommendation for today due to the high risk-to-return ratio | ||||
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