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Technical Major Currencies
Written by article default Friday, 16 September 2011 09:18
Morning Report
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The pair’s positive momentum stopped after reaching 1.3910, where this level represents an intraday barrier for yesterday’s movement. Trading below this level, which also represents 50% Fibonacci correction as shown above, suggests that the pair could return to continue the downside movement again. Consolidation above the resistance at 1.4050-85 is sufficient to weaken the suggested downside movement.
The trading range for today is among the major support at 1.3600 and the major resistance at 1.4215.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3810 | 1.3775 | 1.3710 | 1.3665 | 1.3630 |
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| Resistance | 1.3910 | 1.3970 | 1.4000 | 1.4040 | 1.4085 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair below 1.3915, and take profit in stages at (1.3810 and 1.3710) and stop loss with 4-hour closing above 1.4110 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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We have witnessed sharp fluctuation during the past two days due to facing the neckline for our caught double top pattern over weekly basis at 1.5780. Furthermore, the pair is moving below SMA 50 over four-hour time interval and we recommend reviewing the previous report for the above mentioned technical factors. Now, we will look at the hourly timeframe where we can see a potential bearish double top Gartley pattern with a support line or rather a harmonic trend line connecting its A , C points and their extensions as seen on the graph. This hourly chart spots the importance of 1.5780 over various time frames and a break of which will assist the pair to move bearishly over intraday basis towards C point followed by A point; noting that a break of 1.5870 will send the pair towards 1.5910 zones changing the pattern into a Crab pattern. Anyway, the bearishness is still in favor over intraday basis as far as 1.6000-1.6025 remains intact.
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 | 1.5780 | 1.5720 | 1.5690 | 1.5655 | 1.5545 |
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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 below 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 upwards during the Asian session, attacking SMA 20 once more. In the interim, yesterday's caught slant positive divergence on MACD started to be clearer as we can see the bullish crossover on its moving averages. This divergence sign may assist it to breach the initial resistance level around 76.95 to confirm the bullish scenario which is based on the classical pattern and Elliott count; noting that a break of 77.20-77.30 will accelerate the awaited wave. Conversely, areas of 75.80 will negate this analysis.
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 | 76.75 | 76.40 | 76.20 | 75.80 | 75.60 |
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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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Negative pressures affected the pair since reaching the top around the potential reversal zone of the Butterfly pattern (D1), where these pressures forced the pair to test 23.6% Fibonacci correction at 0.8640, which also represents a barrier not a target, where the pattern’s first target is 38.2% Fibonacci correction at 0.8460. Therefore, we expect the downside movement to control the pair today.
The trading range for today is among the major support at 0.2320 and the major resistance at 0.9035.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8675 | 0.8640 | 0.8585 | 0.8540 | 0.8520 |
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| Resistance | 0.8750 | 0.8780 | 0.8820 | 0.8845 | 0.8920 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair below 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
The pair has formed a bearish technical structure and also breached the ascending critical support as shown above in Green. This breach below the psychological level at 1.0000 supported the pair to form the bearish structure (a possible head and shoulders pattern) where this pattern could force the pair to reverse to the downside towards 38.2% Fibonacci correction at 0.9790, while a breach of this level could extend the downside movement.
The trading range for today is among the major support at 0.9715 and the major resistance at 1.0010
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9790 | 0.9770 | 0.9715 | 0.9680 | 0.9635 |
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| Resistance | 0.9850 | 0.9870 | 0.9900 | 0.9950 | 0.9985 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 0.9840, targeting 0.9715, and stop loss with 4-hour closing below 0.9950 might be appropriate today. | ||||
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