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Technical Major Currencies
Written by article default Friday, 09 September 2011 09:37
Morning Report
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The pair declined sharply yesterday and breached the critical support for the upside trend, which started in June 2010, where this breach negated our expectations of an upside movement yesterday. Consolidation below 1.3970-10 could support the pair to extend the downside movement, but we remain neutral today, awaiting more confirmations regarding the mentioned breach.
The trading range for today is among the major support at 1.3745 and the major resistance at 1.4150
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3880 | 1.3840 | 1.3800 | 1.3775 | 1.3745 |
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| Resistance | 1.3970 | 1.4025 | 1.4085 | 1.4120 | 1.4150 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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The secondary image for the four hour interval shows how the initial resistance around 1.6075 succeeded in forcing the pair to move sharply downwards. We can notice the negative candlestick structure formed after touching the aforesaid resistance zones. In the interim, indicators of the four hour time scale reflect clear bearish case. In result, our suggested harmonic scenario on the main daily graph is still valid where we believe that the pair is on its way to reach the second potential reversal zones -D2- at 1.5780 (161.8% of XA leg for the butterfly pattern). The classical outlook for Cable over short and medium term basis can be checked in the link below.
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 | 1.5935 | 1.5875 | 1.5820 | 1.5780 | 1.5690 |
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| Resistance | 1.6000 | 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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In accordance with yesterday's suggested bullishness, the pair has inclined touching 38.2% Fibonacci retracement of the entire downside rally from 80.20 to 75.90 zones at 77.60 as seen on the provided four hour graph. We expect some kind of mild bounce due to facing the aforementioned important Fibonacci level as Stochastic started to show overbought sign. But, stabilizing above SMA 20 and above 23.6% retracement of our caught Elliott sequence encourages us to keep our bullish predications intact over intraday basis; noting that a break of 77.60 will send the pair violently upwards without correction. Ultimately, the potential classical head and shoulders bottom pattern solidifies our constructive outlook.
The trading range for today is among key support at 75.80 and key resistance now at 79.55.
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
The pair is still biased to the upside; approaching the resistance at 0.8845, while the first potential reversal zone of the suggested Butterfly harmonic pattern is at 0.8920. We expect the upside movement to extend during the coming period to test the mentioned levels, but after reaching those levels, we should pay attention, where the pair’s behavior around these levels could signal some downside corrections, or further rebound to the upside.
The trading range for today is among the major support at 0.8480 and the major resistance at 0.8920.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8650 | 0.8585 | 0.8540 | 0.8500 | 0.8480 |
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| Resistance | 0.8820 | 0.8845 | 0.8920 | 0.8990 | 0.9035 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair above 0.8650, and take profit in stages at (0.8855 and 0.8920) and stop loss with 4-hour closing below 0.8480 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
The several support levels between 0.9850 and 0.9825 have proved their strength, which forced the pair to trade again above 23.6% Fibonacci correction at 0.9865 as shown above on the chart. This move reflected the strength of the pair’s positive momentum which continues to affect the pair’s movement. A daily closing above 0.9910 or a 4-hour closing above 0.9950 is required to relieve the negativity seen on momentum indicators. Any trading above 0.9780 should confirm our 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 | 0.9850 | 0.9825 | 0.9770 | 0.9710 |
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| Resistance | 0.9910 | 0.9950 | 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 0.9865, 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. | ||||
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