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Technical Major Currencies
Written by article default Wednesday, 24 August 2011 07:48
Morning Report
The pair fluctuated heavily in the previous session, but tends to incline as we expected. Looking deeper at the provided chart, we find that, the pair is stable above 1.4410, which could support the pair to consolidate above 1.4455, which represents the top of (C) point of the bullish Bat harmonic pattern, where stability above this level should support the pair to target 127.2% Fibonacci projection of the CD leg at 1.4560. In general, our positive expectations remain valid, supported by the bullish harmonic structure. Stability above 1.4255 should support our expectations, while consolidation above 1.4365 should prove the strength of our expectations.
The trading range for this week 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 | 1.4410 | 1.4365 | 1.4300 | 1.4255 | 1.4205 |
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| Resistance | 1.4455 | 1.4490 | 1.4535 | 1.4560 | 1.4620 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4410 and targeting 1.4560 and stop loss with 4-hour closing below 1.4340 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The full correctional level -100% Fibonacci- of CD leg for the bullish harmonic AB=CD pattern has resisted as well yesterday, pushing the pair downwards once more where it becomes very close to 88.6%. We still need to witness a sustained breakout below 1.6420 to make sure that the pair will not achieve more extended technical targets for the harmonic structure. Anyhow, we hold onto our bearish anticipations over intraday basis, based on the huge negative divergence appearing on RSI 14 and the potential reversal classical formation "Megaphone" discussed several times before.
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 | 1.6550 | 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 1.6135 and stop loss above 1.6615 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The tranquility has dominated the movements of the pair since the opening of this week as seen on the provided daily graph. We notice that the consolidation continues above the key support level of 75.90-75.80; thus, we keep our bullish suggestions intact over intraday basis depending on the positive divergence appearing on RSI 14 and the Elliott count discussed in "Eye on USD/JPY pair" report which we recommend reviewing it for more details about the importance of 77.25 areas. Conversely, areas of 75.90 should hold to keep the positivity valid.
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 | 75.20 | 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
As expected, the support at 0.7815 was sufficient to stop the pair’s negative momentum, while Stochastic was able to provide positive crossover. Therefore, the upside movement is still valid, while stability above the middle line of Bollinger band and the exponential moving average 20 (EMA 20) argue us to expect the upside movement to extend, attempting to retest the exponential moving average 50 (EMA 50) at 0.8000 and the descending channel’s main resistance at 0.8080-70.
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 | 0.7950 | 0.8000 | 0.8080 | 0.8120 | 0.8165 |
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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 breach 0.9825 again, and then rebounded to the upside, however the resistance at 0.9910 forms a strong barrier and limits the upside movement. We expect the downside movement to return today, but stability below 0.9990-1.0010 is necessary to keep our expectations valid.
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 | 0.9825 | 0.9770 | 0.9735 |
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| Resistance | 0.9910 | 0.9970 | 0.9990 | 1.0010 | 1.0080 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9900, targeting 0.9635 and stop loss with 4-hour closing above 0.9990 might be appropriate. | ||||