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Technical Major Currencies
Written by article default Wednesday, 07 September 2011 09:46
Morning Report
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The classic support levels mentioned in our previous report around 1.3970 stopped the pair’s negative momentum, and supported the pair to rebound to the upside. Consolidation above this level could support the pair to enter another upside wave, while stability above the exponential moving average 200 at 1.4110 should confirm our positive outlook. A breach of 1.3910 and stability below it could negate our expectations for today, where the pair could extend the downside movement.
The trading range for today is among the major support at 1.3845 and the major resistance at 1.4365
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.3910.
| Support | 1.4025 | 1.3970 | 1.3910 | 1.3880 | 1.3845 |
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| Resistance | 1.4110 | 1.4155 | 1.4250 | 1.4255 | 1.4300 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.4025, and take profit in stages at (1.4150 and 1.4255) and stop loss with 4-hour closing below 1.3910 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The pair dropped to reach just near our targeted area and the possible first potential reversal zone for the harmonic pattern we mentioned yesterday. We expect a rebound to the upside today affected by the harmonic pattern targeting initially the 200 SMA and X point of the butterfly around 1.6100-1.6120.
The trading range for today is among key support at 1.5780 and key resistance at 1.6310.
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 | 1.5935 | 1.5875 | 1.5820 | 1.5780 | 1.5700 |
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| Resistance | 1.6000 | 1.6060 | 1.6120 | 1.6180 | 1.6225 |
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| Recommendation | Based on the charts and explanations above our opinion is, buiying the pair around 1.5950 targeting 1.6100, followed by 1.6260 and stop loss below 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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After touching 77.70 resistance the pair pulled back again to trade near 77.20 support. Trading above the 20 SMA and the ascending support shown on image shows how the pair is slightly biased to the upside, we still eye 88.70 as the next target for the pair to complete the ABC zigzag correction of our Elliott wave count. Breaching the latest high at 77.70 will accelerate the move.
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 | 76.95 | 76.40 | 76.20 | 75.80 | 75.25 |
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| Resistance | 77.40 | 77.85 | 78.45 | 79.10 | 79.55 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 77.20, targeting 79.55 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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As shown upon the chart, the bullish harmonic structure was able to stop the downside correction, which was expected this week. Currently, the pair approaches the pattern’s first target, while we suggest an upside move to reach this target, which represents 38.2% Fibonacci correction of the CD leg of the harmonic structure at 0.8855. However, high risk-to-return ratio is associated with our expectations and heavy fluctuations are expected today. ADX attempts to enter an ascending channel on the medium and long-term timeframes.
The trading range for today is among the major support at 0.8020 and the major resistance at 0.8920.
The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.
| Support | 77 | 0.8385 | 0.8350 | 0.8235 | 0.8170 |
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| Resistance | 0.8600 | 0.8680 | 0.8720 | 0.8855 | 0.8920 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair above 0.8350, and take profit in stages at (0.8550 and 0.8855) and stop loss with 4-hour closing below 0.8170 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair is currently forming the awaited downside correction, where a retest of levels between 38.2% Fibonacci correction and 0.9820 is possible. Consolidation above 0.9770 supports the upside move to extend and attempt to breach the several resistances above, such as 0.9910. A breach of 0.9710 should negate our intraday positive expectations.
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 | 0.9820 | 0.9770 | 0.9710 | 0.9635 |
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| Resistance | 0.9910 | 0.9955 | 0.9990 | 1.0010 | 1.0125 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 0.9820, and take profit in stages at (0.9970 and 1.0080) and stop loss with 4-hour closing below 0.9710 might be appropriate today | ||||
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