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Technical Major Currencies
Written by article default Friday, 19 August 2011 07:55
Morning Report
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The pair declined sharply and is currently hovering around 61.8% Fibonacci of the CD leg for the bullish Bat harmonic pattern. At the same time, on the 4-hour interval, we didn't witness any 4-hour closing below 1.4300, which represents the mentioned Fibonacci level. Harmonically, consolidation above the second target suggests the pattern’s effect to remain strong. Stability above 1.4410 is required to confirm the upside move, while a breach of 1.4205 is a negative sign. Therefore, we will stay neutral today, awaiting more confirmations.
The trading range for today is among the major support at 1.4150 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 | 1.4300 | 1.4255 | 1.4205 | 1.4150 | 1.4120 |
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| Resistance | 1.4365 | 1.4410 | 1.4455 | 1.4490 | 1.4535 |
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| Recommendation | Based in the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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Our yesterday's technical decision to stay aside was correct since the pair couldn’t take the full correctional level or rather 100% Fibonacci of CD leg for the bullish harmonic AB=CD pattern to achieve more extended upside targets. Now, we can notice the bearish tendency along with the huge negative divergence appearing on RSI 14 that we hinted at it in the previous report. Moreover, the classical probability of forming a broadening top pattern-megaphone pattern- suggesting that the bearishness may dominate the movements over intraday basis. Breaching through 1.6420; preferably below 1.6365 is required to confirm the bearishness. Conversely, a break of 1.6600 zones will bring the bullishness back into focus.
The trading range for today is among key support at 1.6225 and key resistance at 1.6745.
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 | 1.6420 | 1.6365 | 1.6310 | 1.6250 | 1.6225 |
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| Resistance | 1.6550 | 1.6630 | 1.6680 | 1.6715 | 1.6745 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.6420 targeting 1.6190 and stop loss above 1.6610 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Market is still trapped within a very narrow range since the opening of this week as we mentioned before. The chance for drawing a double bottom and the possibility of forming positive divergence on RSI 14 remain valid. But, we need to witness a sustained breakout above SMA 20 at 77.35 to make sure that the bullishness will be activated. As for now, we will stand aside until we witness a reliable price action to pinpoint the next big move.
The trading range for today is among key support at 74.80 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, staying aside until an actionable setup presents itself to pinpoint the next move | ||||
Swiss Franc (CHF)
Morning Report
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The pair’s movement is biased to the upside, unless a breach of 0.7815 is seen. Therefore, the pair is trading positively, approaching 78.6% Fibonacci level at 08020 as shown above. A breach of 0.8020 should support the upside move to extend. RSI is stable above 50 points and trading within sideway range. The suggested breach is required to confirm our scenario.
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 weekly closing above 0.6980 targeting 0.8815.
| Support | 0.7900 | 0.7875 | 0.7815 | 0.7750 | 0.7710 |
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| Resistance | 0.8020 | 0.8080 | 0.8120 | 0.8165 | 0.8205 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.7900, targeting 0.8120 and stop loss with 4-hour closing below 0.7815 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair failed to form the descending triangle pattern mentioned in our previous report, while in the current time the pair returns to trade above the exponential moving average 20 and 50, where these signs are positive especially as consolidation above 0.9865 is seen. Stochastic attempts to enter overbought areas, while the pair is approaching a critical resistance, which should be closely watched before specifying the pair’s trend. Therefore, we will stay neutral today awaiting more confirmations.
The trading range for today is among the major support at 0.9710 and the major resistance at 1.0125.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9880 | 0.9865 | 0.9830 | 0.9770 | 0.9735 |
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| Resistance | 0.9970 | 0.9990 | 1.0010 | 1.0080 | 1.0125 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
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