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Technical Major Currencies
Written by article default Thursday, 15 September 2011 08:11
Morning Report
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The pair continued to trade positively yesterday within the minor ascending channel as shown on the secondary image, where this channel represents a suggested continuation flag pattern. Therefore, this structure supports the pair to resume the intraday downside correction which requires a clear breach of the channel’s support at 1.3630 and consolidation below 1.3840.
The trading range for today is among the major support at 1.3480 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 | 1.3630 | 1.3600 | 1.3580 | 1.3530 |
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| Resistance | 1.3710 | 1.3775 | 1.3810 | 1.3840 | 1.3910 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair with a breach of 1.3630, 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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Reviewing the previous report shows how the pair respected our suggested price actions since the pair moved towards 1.5820 before moving violently downwards during the Asian session. The secondary four-hour chart still shows the statistical ceiling consisting of SMA 20 and SMA 50 which pressures the pair negatively; whilst the daily closing was achieved again below the pivotal support of 1.5780. Consequently, we keep our classical bearish anticipations intact over intraday and short term basis and a break of 1.5720 will accelerate the awaited descending wave.
The trading range for today is among key support at 1.5515 and key resistance at 1.6025.
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 | 1.5720 | 1.5690 | 1.5655 | 1.5545 | 1.5515 |
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| Resistance | 1.5780 | 1.5820 | 1.5880 | 1.5935 | 1.6000 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5780 targeting 1.5475 and stop loss above 1.6000 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair moved mildly downwards, touching areas around the initial support of 76.75-76.65 zones assisting Stochastic to enter oversold areas. SMA 20 is currently valued at 76.95 and we need a breakout above it to confirm the awaited huge reversal discussed several times before, based on the classical possibility of forming the head and shoulders bottom pattern and the suggested Elliott count. A break of 77.20 will accelerate the bullishness whilst breaching 75.80 will negate the scenario.
The trading range for today is among key support at 75.25 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 | 76.40 | 76.20 | 75.80 | 75.60 | 75.20 |
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| Resistance | 76.95 | 77.20 | 77.60 | 77.90 | 78.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 76.95 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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Yesterday, the pair reached around 0.8725 and then rebounded to the upside affected by trading within the minor descending channel, which controls the pair’s movement over intraday basis. Momentum indicators provide negative signs as shown on the daily interval, which support our expectations for an intraday downside movement today. The harmonic structure mentioned in our previous reports is still valid targeting 0.8460; however, stability below 0.8920 is necessary for the pattern to remain valid.
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 0.8920 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
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The pair rebounded to the upside after building a base around the support at 0.9900, while we also see a breach of the neckline of a bullish technical structure at 0.9935. This pattern adds more confirmations to our expected intraday upside move, also supported by the breach of the Moving Average 50. Our targets today are the psychological barrier at 1.0000 and 1.0125, however, consolidation above 0.9850 is necessary for our bullish expectations to prevail.
The trading range for today is among the major support at 0.9830 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 | 0.9935 | 0.9850 | 0.9770 | 0.9700 | 0.9640 |
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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, we recommend buying the pair around 0.9935 and take profit in stages at (1.0010 and 1.0125) and stop loss with 4-hour closing below 0.9850 might be appropriate today. | ||||
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