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Technical Major Currencies
Written by article default Thursday, 25 August 2011 08:34
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Morning Report
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The resistance of 1.4455 stopped the pair’s positive momentum yesterday, and then the pair returned to downside. This resistance represents the top of (C) point of the bullish Bat harmonic pattern, while the pair should stabilize above this point to reach the target of 127.2% Fibonacci correction of the CD leg at 1.4560. As we expect, the upside movement is still possible, however, the RSI and ADX reflect weakening positive momentum. We recommend caution in case a breach of 1.4340 with 4-hour closing below.
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 | 1.4365 | 1.4340 | 1.4300 | 1.4255 | 1.4205 |
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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, 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 decisive breakout below 1.6420 was the main technical catalyst behind forming yesterday's long black candlestick pattern as seen on the subsidiary image. Now, some kind of mild retrace might be seen to retest the aforesaid broken areas before resuming the bearishness of our accurate negative divergence. The reversal classical pattern" Megaphone" is still in progress; thus, we hold onto our bearish scenario over intraday basis according to those technical factors, mentioned above and a break of 1.6310 will add huge negative pressure.
The trading range for today is among key support at 1.6025 and key resistance at 1.6630.
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 | 1.6310 | 1.6250 | 1.6225 | 1.6190 | 1.6075 |
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| Resistance | 1.6420 | 1.6470 | 1.6550 | 1.6630 | 1.6680 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6420 targeting 1.6135 and stop loss above 1.6615 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Finally, the pair started to attack SMA 20-colored in green- as we anticipated since the opening of the week. The positive divergence started to be activated as RSI 14 becomes valued at 44.00 zones. Once we witness a four hour closing above 77.20 areas, the bullishness may accelerate. Generally, we keep our bullish predictions intact over intraday basis, supported by our suggested Elliott count, discussed in "Eye On USD/JPY" report and we recommend reviewing it for more details about the importance of 77.20 areas.
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 | 76.20 | 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
The pair rebounded to the upside yesterday, while consolidating above the exponential moving average 20 (EMA 20) and the middle line of Bollinger band should support the bullishness. Moreover, Stochastic is turning positive, supporting the pair to retest the downside trend’s main resistance at 0.8050, while the pair could achieve further targets in case consolidation above the mentioned resistance was seen. Stability above 0.7800-15 is necessary to keep the bullishness possibility intact.
The trading range for today is among the major support at 0.7750 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 | 0.7800 | 0.7750 |
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| Resistance | 0.8000 | 0.8050 | 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 is trading narrowly and stable between 23.6% Fibonacci correction at 0.9865 and the descending main resistance at 0.9910, which is today at 0.9895. The RSI and Stochastic attempt to turn positive, while the pair is currently stable above the exponential moving averages 20 and 50 (EMA 20 & 50). We will stay neutral today, while a breach of 0.9910 suggests a possible downside move, but a breach of 0.9825 should confirm the bearishness.
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 | 0.9895 | 0.9910 | 0.9970 | 1.0010 | 1.0125 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
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