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Technical Major Currencies
Written by article default Friday, 12 August 2011 07:55
Morning Report
The pair is fluctuating heavily within sideway range, which is limited between 23.6% and 61.8% Fibonacci levels of the CD leg of the bullish harmonic Bat pattern, in addition, this sideway range is above point D of the Bat pattern and also above point (3) of the Three Drivers pattern. We still expect positivity due to the harmonic patterns’ effect; however, Stochastic is negative along with ADX indicator. Therefore, 4-hour closing above 1.4255 is required to confirm the bullishness, while stability with 4-hour closing below 1.4120 should activate the downside movement.
The trading range for today is among the major support at 1.3910 and the major resistance at 1.4490
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4150 | 1.4070 | 1.4035 | 1.3970 | 1.3910 |
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| Resistance | 1.4205 | 1.4255 | 1.4300 | 1.4370 | 1.4410 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4225 and take profit in stages at (1.4300, 1.4370 and 1.4455) and stop loss with 4-hour closing below 1.4120, OR, selling the pair at 1.4120 and take profit in stages at 1.4035, 1.3970 and 1.3910 and stop loss with 4-hour closing above 1.4255 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The pair succeeded in retesting the previous broken pivotal support-turned into resistance- at 1.6250 zones, where it started to decline once more as seen on the provided daily graph. We classify the internal upside moves as normal correction behaviors within C wave of the suggested Elliott count. The negativity appearing on Vortex and SMA 50 indicators encourages us to keep our bearish predictions over intraday basis, mainly targeting the psychological level of 1.6000 and a break of which may accelerate the wave.
The trading range for today is among key support at 1.5880 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 | 1.6125 | 1.6070 | 1.6000 | 1.5935 | 1.5885 |
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| Resistance | 1.6225 | 1.6250 | 1.6310 | 1.6365 | 1.6470 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6225 targeting 1.5980 and stop loss above 1.6420 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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With a long tail for yesterday's candlestick, the pair achieved some kind of rebound from the initial support areas of 76.25-76.30 as seen on the provided graph. At the same time, the contrarian between momentum indicator-RSI 14- and trend indicator-AROON- forces us to stay aside over intraday basis until an actionable set up presents itself. Carefully note that, a break of 77.45 zones may fix the sign appearing on AROON, while RSI is preparing for an upside move. Conversely, breaching the significant low of 76.25 will damage the chances of achieving upside recovery.
The trading range for today is among key support at 74.25 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 | 76.45 | 76.25 | 75.25 | 74.80 | 74.55 |
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| Resistance | 78.45 | 79.15 | 79.55 | 80.00 | 80.60 |
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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. | ||||
Swiss Franc (CHF)
Morning Report
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The sharp incline seen supported the pair to breach the main resistance, where this signal is positive especially after the pair consolidated above SMA 20 and 50. But, Stochastic is currently biased to the downside and the pair is unable to breach 50% Fibonacci retracement at 0.7670 as shown above, which could bring bearish correction to retest the broken resistance before rebounding again to the upside, where the bullishness became highly possible on short term and medium term basis.
The trading range for today is among the major support at 0.7350 and the major resistance at 0.8020.
The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.
| Support | 0.7500 | 0.7475 | 0.7430 | 0.7360 | 0.7310 |
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| Resistance | 0.7620 | 0.7665 | 0.7710 | 0.7750 | 0.7815 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.7430 and take profit in stages at (0.7530, 0.7665 and 0.7815) and stop loss with 4-hour closing below 0.7290 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
On hourly interval, we see the pair is stable below SMA 20 and 50, after it failed to set a new peak above 1.0000, while Stochastic is negative. Therefore, we expect an intraday downside movement for today, but the general trend is to the upside, while this downside movement is just seen as a correction. We recommend checking the link below for more analysis regarding the expected general trend.
The trading range for today is among the major support at 0.9635 and the major resistance at 1.0010.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000..
| Support | 0.9840 | 0.9770 | 0.9735 | 0.9700 | 0.9680 |
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| Resistance | 0.9880 | 0.9910 | 0.9970 | 1.0010 | 1.0080 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9880 and take profit in stages at (0.9785, 0.9635) and stop loss with 4-hour closing above 1.0010 might be appropriate. | ||||
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