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Technical Major Currencies
Written by article default Wednesday, 17 August 2011 11:14
Midday Report
Sharp bearishness was seen and followed by sharp incline, which provided further confirmations regarding the continuous effect of the suggested bullish Bat harmonic pattern that merged with the Three Drives pattern as discussed before. Now, Stochastic is attempting to provide a positive crossover, supported by the rebound form the 50 level. As the pair consolidates above the resistance at 1.4455, we expect the upside movement to extend, targeting the suggested target as shown in our morning report.
The trading range for today is among the major support at 1.4300 and the major resistance at 1.4620.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4400 | 1.4365 | 1.4300 | 1.4255 | 1.4205 |
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| Resistance | 1.4455 | 1.4490 | 1.4535 | 1.4565 | 1.4620 |
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| Recommendation | Our morning expectations remain valid | ||||
Great British Pound (GBP)
Midday Report
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The pair has acted in response with the overbought signal on RSI 14 as it always does. The solid resistance around 1.6470 could limit the recently established upside recovery from 1.6110 since it represents 88.6% of the bullish harmonic AB=CD pattern. On the other side, coming below 76.4% of CD leg at 1.6365 will bring bearish price actions. Consequently, staying aside will be the preferable strategy until an actionable setup presents itself to pinpoint the upcoming big move.
The trading range for today is among key support at 1.6070 and key resistance at 1.6680.
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 | 1.6365 | 1.6310 | 1.6250 | 1.6125 | 1.6070 |
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| Resistance | 1.6470 | 1.6500 | 1.6550 | 1.6630 | 1.6680 |
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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)
Midday Report
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The pair didn't show any big move since morning, struggling around the pivotal support of 76.45-76.25. In the interim, drawing a double bottom could be in progress for the time being, while we will depend on the potential positive divergence of RSI 14 to predicate possible bullish scenario for the rest of the day. This scenario could be confirmed if the pair succeeded in breaching 77.40 zones.
The trading range for today is among key support at 75.25 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 | 75.70 | 75.25 | 74.80 |
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| Resistance | 77.10 | 77.40 | 77.85 | 78.45 | 79.55 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.40 targeting 79.55 and stop loss below 76.00 might be appropriate. | ||||
Swiss Franc (CHF)
Midday Report
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The pair declined sharply, while observing the 4-hour interval, we will find that this decline stopped around 61.8% Fibonacci correction and also around the SMA 20, which is still moving positively as shown above. Therefore, our positive expectations remain valid. A 4-hour closing below 0.7815 will negate our intraday expectations, but will not affect the upside movement in general; however this could suggests an extension of the downside correctional move.
The trading range for today is among the major support at 0.7665 and the major resistance at 0.8280.
The short-term trend is to the upside with steady daily closing above 0.6980 targeting 0.88155.
| Support | 0.7815 | 0.7750 | 0.7710 | 0.7665 | 0.7620 |
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| Resistance | 0.7920 | 0.8020 | 0.8080 | 0.8120 | 0.8195 |
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| Recommendation | Our morning expectations remain valid | ||||
Canadian Dollar (CAD)
Midday Report
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The pair declined again after reaching below the strong resistance at 0.9850. In addition, the pair returned to stabilize below the SMA 20 and 50. Therefore, we keep our morning expectations as they are.
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 | 0.9770 | 0.9735 | 0.9700 | 0.9680 | 0.9635 |
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| Resistance | 0.9665 | 0.9910 | 0.9970 | 0.9990 | 1.0010 |
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| Recommendation | Our morning expectations remain valid | ||||
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