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Technical Major Currencies
Written by article default Thursday, 08 September 2011 09:15
Morning Report
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The pair was unable yesterday to breach the critical support for the upside trend as shown above. Stochastic attempts to turn positive, while RSI 14 is moving sideways, relieving the negativity seen on the indicator. In result, stability above the critical support of the upside trend lead us to hold onto our positive expectations. But, a breach of 1.3910 with 4-hour closing, could force the pair to decline sharply.
The trading range for today is among the major support at 1.3840 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 | 1.3840 |
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| Resistance | 1.4120 | 1.4150 | 1.4205 | 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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Respecting yesterday's expected positive scenario, the pair has mildly bounced towards 1.6050 zones after touching the first potential reversal zones of the harmonic butterfly pattern. Now, it came back below the psychological level of 1.6000 once more struggling around our detected D1; thus, we believe that it is on its way to achieve more bearishness over intraday basis, mainly targeting D2 at 1.5780 zones where Fibonacci projection of 161.8% of XA leg exists. Stochastic may cause some kind of fluctuation, but MACD traditional is definitely negative. Note that any intraday upside rally should be capped at 1.6170-1.6190 zones to keep our suggested bearish scenario valid.
The trading range for today is among key support at 1.5645 and key resistance at 1.6250.
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 | 1.5875 | 1.5820 | 1.5780 | 1.5690 | 1.5645 |
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| Resistance | 1.6025 | 1.6075 | 1.6105 | 1.6190 | 1.6250 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6000 targeting 1.5780 and stop loss above 1.6170 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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A normal bounce was seen yesterday due to facing the important Fibonacci of 38.2% for the downside rally from 80.20 to 75.90 zones. Now, the pair started to stabilize above the key support level of 77.20 and above SMA 20 -colored in green- as seen on the provided four hour graph. Henceforth, our proposed Elliott count is still valid, supported by the classical head and shoulder bottom pattern and the positive sign on indicators. A break of 77.60 areas will accelerate the bullish wave, targeting 78.80, followed by 79.20-79.55 areas.
The trading range for today is among key support at 75.80 and key resistance now at 79.10.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 77.20 | 76.95 | 76.40 | 76.20 | 75.80 |
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| Resistance | 77.60 | 77.90 | 78.45 | 79.10 | 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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Trading above (X) point top of the suggested harmonic structure should support the possibility of completing the suggested Bat pattern, where the structure’s potential reversal zone is at 0.8920. In result, stability above 0.8480 should support our positive expectations, while a breach of 0.8300 should weaken our expectations over intraday basis.
The trading range for today is among the major support at 0.8170 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 | 0.8540 | 0.8500 | 0.8480 | 0.8455 | 0.8300 |
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| Resistance | 0.8600 | 0.8680 | 0.8720 | 0.8820 | 0.8855 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair above 0.8480, and take profit in stages at (0.8855 and 0.8920) and stop loss with 4-hour closing below 0.8170 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
By observing the daily chart, and according to the classical analysis, we see the pair’s negative momentum stopped yesterday around the exponential moving average 20 and then rebounded slightly to the upside. Furthermore, the pair covered the opening gap seen on Monday, which suggests that the upside movement could return today. But, consolidation above 0.9750 is necessary to keep our positive expectation valid, where a breach of this level bearishly could activate the negativity on Stochastic.
The trading range for today is among the major support at 0.9680 and the major resistance at 1.0100
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9825 | 0.9770 | 0.9750 | 0.9710 | 0.9680 |
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| Resistance | 0.9865 | 0.9910 | 0.9970 | 1.0010 | 1.0080 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 0.9850, and take profit in stages at (0.9970 and 1.0080) and stop loss with 4-hour closing below 0.9750 might be appropriate today. | ||||