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Technical Major Currencies
Written by article default Tuesday, 13 September 2011 07:56
Morning Report
The pair inclined to cover the opening gap seen yesterday supported by momentum indicators that traded in oversold areas. In fact, the downside movement is still valid and could continue towards 1.3320-15, where a breach of which could trigger a test of 1.3110, as stability below 1.3910 supported the possibility of forming a harmonic structure, however, we will discuss the pattern later in case the pair completes the formation. In general, consolidation below 1.3775 could support the pair to extend the downside movement today, while any trading below 1.3910 should keep the negativity valid for the coming period.
The trading range for today is among the major support at 1.3320 and the major resistance at 1.3910.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3665 | 1.3600 | 1.3580 | 1.3530 | 1.3435 |
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| Resistance | 1.3710 | 1.3775 | 1.3800 | 1.3840 | 1.3880 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair below 1.3710, and take profit in stages at (1.3530 and 1.3435) and stop loss with 4-hour closing above 1.3840 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Today, we will look classically at the four hour chart -secondary image- where we will notice that, SMA 20 & SMA 50 combination which represents the statistical trend line for the intraday are covering the pair as well. Of note, the price action from 1.5773 -yesteray's recorded low- should be seen as a normal effect for touching SMA 100 over weekly basis where the pair has met the PRZ of our previous discussed butterfly pattern formed on the daily chart -check the previous report-. In the interim, the classical double top on the weekly graph should beat the daily harmonic structure. To conclude this collection of time frames, the fluctuation might continue over intraday basis below the ceiling -SMA 20 and 50- of the four hour interval and this fluctuation is a reaction for touching important short term pivotal support areas, but the bearishness on the weekly chart is clear. Thus, we look forward to witness a sustained breakout below 1.5780 to activate the double top pattern.
The trading range for today is among key support at 1.5515 and key resistance at 1.6075.
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 | 1.5820 | 1.5780 | 1.5720 | 1.5690 | 1.5655 |
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| Resistance | 1.5880 | 1.5935 | 1.6000 | 1.6025 | 1.6075 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5880 targeting 1.5595 and stop loss above 1.6075 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Yesterday's upside move was limited below SMA 20 -coloreed in green- and we need to witness stability above this level at 77.30 to see acceleration. Stochastic suggests potential retest of 76.75 zones before overlapping positively once more. Our mixture between Elliott sequence and classical bullish probability remains valid over intraday basis as far as areas of 75.90-75.80 remain intact.
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 | 76.75 | 76.40 | 76.20 | 75.80 | 75.60 |
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| Resistance | 77.40 | 77.60 | 77.90 | 78.45 | 79.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.75 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair declined after reaching around 0.8920 and stabilized below 0.8850, which suggests the completion of the Butterfly harmonic structure. Consolidation below these levels suggests a test of the first target of the harmonic structure at 0.8460 at least, but we should pay attention to the technical barrier at 0.8640. These suggested levels represent 38.2% and 23.6% Fibonacci correction respectively. Stability above 0.8920 weakens the possibility of the downside movement.
The trading range for today is among the major support at 0.8540 and the major resistance at 0.9105.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8780 | 0.8750 | 0.8675 | 0.8640 | 0.8585 |
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| Resistance | 0.8820 | 0.8845 | 0.8920 | 0.8990 | 0.9040 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8820, and take profit in stages at (0.8640 and 0.8540) and stop loss with 4-hour closing above 0.8950 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
The pair declined as we expected yesterday, which forced the pair to face the psychological barrier at 1.0000 and the resistance at 1.0010 along with the overbought signs seen on Stochastic, but today, Stochastic entered oversold areas, while the pair is currently approaching the critical support at 0.9865 as stability above this level suggests an intraday upside movement. Consolidation above the critical ascending support at 0.9830 as shown above is necessary to keep our positive expectations valid.
The trading range for today is among the major support at 0.9770 and the major resistance at 1.0185
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9900 | 0.9865 | 0.9850 | 0.9830 | 0.9770 |
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| Resistance | 0.9950 | 0.9970 | 1.0010 | 1.0080 | 1.0125 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair above 0.9910, and take profit in stages at (1.0010 and 1.0125) and stop loss with 4-hour closing below 0.9770 might be appropriate today. | ||||
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