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Technical Major Currencies
Written by article default Wednesday, 31 August 2011 07:42
Morning Report
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The sharp decline seen yesterday was unable to provide 4-hour closing below 1.4410, which could support the pair to attempt reaching 127.2% Fibonacci retracement of the CD leg of the bullish Bat harmonic pattern. The positivity could return today, as stability above 1.4455, which represents the top of (C) point, should confirm the bullishness, while 4-hour closing below 1.4365 should negate our expectations for an intraday upside movement.
The trading range for today is among the major support at 1.4255 and the major resistance at 1.4700
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4410 | 1.4365 | 1.4325 | 1.4300 | 1.4255 |
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| Resistance | 1.4455 | 1.4090 | 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, targeting 1.4560 and stop loss with 4-hour closing below 1.4325 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Yesterday's aggressive decline has been capable of creating a bearish candlestick formation which is very close to be a bearish engulfing pattern. Although the pair is still stable above SMA 50 but the negativity appearing on MACD traditional argues us to suggest potential downside actions over intraday basis. In the interim,Stochastic started to lose its upside steam despite moving close to oversold areas. All what we need is to witness a sustained break back below yesterday's low to visit 1.6000 zones as this awaited breakout will weaken 1.6205 zones and 1.6105 areas, seen on the provided graph.
The trading range for today is among key support at 1.6075 and key resistance at 1.6550.
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 | 1.6250 | 1.6225 | 1.6190 | 1.9075 | 1.6025 |
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| Resistance | 1.6365 | 1.6420 | 1.6470 | 1.6500 | 1.6550 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.6250 targeting 1.6025 and stop loss above 1.6430 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Tranquility still dominates the movements of the pair since the opening of this week, where we still believe that the suggested Elliott sequence offers the probability of starting "C" wave sooner. We are not sure yet whether "B" wave has been placed earlier at 76.50 zones or it is still in progress. But, we can see potential slant positive divergence On MACD traditional indicator; of course, it is still underway and it needs more confirmation. Breaching through SMA 20 at 76.85 will ease the path for re-attacking 23.6% Fibonacci retracement of the entire downside rally from 80.20. Of note, breaching 77.20 will accelerate the possible bullishness.
The trading range for today is among key support at 75.25 and key resistance now at 78.80.
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 | 75.25 | 74.80 |
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| Resistance | 16.85 | 77.20 | 77.40 | 77.85 | 78.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 76.85 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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As shown above on the chart, 78.6% Fibonacci correction stopped the pair’s positive momentum, while momentum indicators are negatively biased. But, the exponential moving averages 20 and 50 are still trading positively.Thus, the Positivity remains valid today, while a breach of 0.8215 should confirm the bullish wave, which could push the pair towards 0.8360 zones.
The trading range for today is among the major support at 0.8020 and the major resistance at 0.8360.
The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.
| Support | 0.8120 | 0.8080 | 0.8020 | 0.7970 | 0.7900 |
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| Resistance | 0.8215 | 0.8250 | 0.8280 | 0.8360 | 0.8385 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.8215, targeting 0.8360 and stop loss with 4-hour closing below 0.8120 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair is still hovering around 38.2% Fibonacci correction, where this level failed to support the pair to take a clear upside movement. Furthermore, the exponential moving averages 20 and 50 prevent the extension of the upside move, in addition, the critical resistance of 23.6% Fibonacci correction at 0.9865 supports the downside movement. Therefore, we hold onto our negative expectations as they are, however, consolidation below the mentioned resistance is necessary to ahieve this scenario.
The trading range for today is among the major support at 0.9635 and the major resistance at 0.9970
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 | 0.9825 | 0.9865 | 0.9910 | 0.9970 | 1.0010 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair around 0.9825, targeting 0.9635 and stop loss with 4-hour closing above 0.9910 might be appropriate. | ||||