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Technical Major Currencies
Written by article default Tuesday, 23 August 2011 09:22
Morning Report
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During the past period, the pair was trading within sideway range above the support as shown above in pink, and also the pair is still stable above 61.8% Fibonacci retracement of the CD leg of the bullish Bat harmonic pattern. All these factors together support our positive expectations to remain valid supported by the harmonic pattern, while trading above 1.4300 should increase the positivity chances. On the other hand, stability above 1.4455 is necessary to confirm the possibility of reaching 127.2% Fibonacci correction of the CD leg of the harmonic pattern.
The trading range for today is among the major support at 1.4255 and the major resistance at 1.4560
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4365 | 1.4300 | 1.4255 | 1.4205 | 1.4150 |
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| Resistance | 1.4410 | 1.4455 | 1.4490 | 1.4535 | 1.4560 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4365 and targeting 1.4560 and stop loss with 4-hour closing below 1.4300 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The pair is still hovering around 88.6% Fibonacci of CD leg for the bullish harmonic AB=CD pattern as seen on the provided four hour graph. The tranquility dominated the price behaviors since the opening of the week argues us to hold onto our bearish predictions over intraday basis, based on the huge negative divergence appearing on RSI 14 and the potential reversal classical formation "Megaphone" discussed earlier. Breaching through the pivotal support of 1.6420 should be seen to confirm our constructive outlook.
The trading range for today is among key support at 1.6225 and key resistance at 1.6715.
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 | 1.6500 | 1.6550 | 1.6630 | 1.6680 | 1.6715 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.6420 targeting 1.6135 and stop loss above 1.6615 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Consolidation continues above the initial support of 75.90-75.80; whilst the positive divergence appearing on RSI 14 is still in progress. AROON indicator is still negative, but it started to show a sign of weakness for the bearish trend. Henceforth, we still see chances for achieving a bullish recovery, targeting SMA 50. In the interim, SMA 20-colored in green- should be cleared to solidify our bullish overview.
The trading range for today is among key support at 75.80 and key resistance now at 78.45.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.40 | 76.25 | 75.80 | 85.20 | 74.85 |
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| Resistance | 77.20 | 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 77.20 targeting 79.55 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair is stable above the exponential moving average -EMA 20- as shown above in green and above the middle and upper line of Bollinger band. Trading within sideway range yesterday relieved the negativity seen on Stochastic, while today the indicator is attempting to provide a positive crossover. Therefore, our positive expectations remain valid, while stability above 0.7800-15 should support our intraday positivity.
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 | 0.7875 | 0.7815 | 0.7750 | 0.7710 | 0.7665 |
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| Resistance | 0.7900 | 0.7950 | 0.8020 | 0.8080 | 0.8120 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.7875, 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 again to move higher, while the resistance at 0.9910-70 has proved its strength, pushing the pair to the downside. Therefore, our negative expectations remain valid, while Stochastic is turning negative from overbought areas. Stability below 0.9825 should confirm the downside movement.
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 | 0.9865 | 0.9825 | 0.9770 | 0.9735 | 0.9700 |
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| Resistance | 0.9910 | 0.9970 | 1.0010 | 1.0080 | 1.0125 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9880, targeting 0.9635 and stop loss with 4-hour closing above 0.9970 might be appropriate. | ||||