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Technical Major Currencies
Written by article default Tuesday, 20 September 2011 09:33
Morning Report
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Consolidation below 1.3665 has negated the pair’s attempts to cover the bearish opening gap seen yesterday. Today, the pair is also trading below this barrier, which suggests more downside movement in light of the formation of the CD leg of the suggested harmonic structure as shown above. A 4-hour closing below 1.3570 is necessary to confirm our intraday expectations and negate any possible upside correction. Stochastic is negative which supports our expectations.
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 | 1.3600 | 1.3570 | 1.3530 | 1.3435 | 1.3395 |
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| Resistance | 1.3665 | 1.3710 | 1.3775 | 1.3800 | 1.3840 |
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| Recommendation | Based on the charts and explanations above we recommend selling the pair below 1.3665, and take profit in stages at (1.3530 and 1.3435) and stop loss above 1.3775 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair continued its clear bearish trend after touching our detected technical resistance of 1.5750. Re-testing the aforesaid areas will not be able to change our negative outlook which is based on the classical double top formation appearing on the weekly studies; noting that the cover of moving averages combination becomes very solid. Breaching through yesterday's recorded low will trigger a panic sell-off softly targeting the pivotal support areas around 1.5475. Only a break above 1.5935-1.6000 will give reasons for delaying the scenario.
The trading range for today is among key support at 1.5475 and key resistance at 1.5935.
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 | 1.5630 | 1.5590 | 1.5545 | 1.5515 | 1.5475 |
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| Resistance | 1.5725 | 1.5780 | 1.5820 | 1.5880 | 1.5935 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5700 targeting 1.5475 and stop loss above 1.5885 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair extended its awaited downside correction to touch 76.30 zones as seen on the provided four-hour graph. Actually, these bearish actions have created a support line for a potential falling wedge, while the place of B wave for our suggested Elliott sequence is reconsidered. The resistance line of this falling wedge pattern should be breached to confirm the awaited reversal, but breaching 75.80 will negate the Elliott cycle completely.
The trading range for today is among key support at 75.25 and key resistance now at 77.90.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 76.40 remain intact.
| Support | 76.40 | 76.20 | 75.80 | 75.60 | 75.25 |
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| Resistance | 76.65 | 76.95 | 77.20 | 77.60 | 77.90 |
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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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The incline seen yesterday was limited below the potential reversal zone of the bearish Butterfly pattern, where this fact proves the negative effect of the harmonic structure, which the pair achieved none of its targets. Consolidation below the potential reversal zone at 0.8920 supports the suggested downside movement towards 0.8460 at least, which represents 38.2% Fibonacci correction of the CD leg of the harmonic structure.
The trading range for today is among the major support at 0.8460 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 | 0.8820 | 0.8800 | 0.8780 | 0.8750 | 0.8675 |
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| Resistance | 0.8900 | 0.8920 | 0.8990 | 0.9040 | 0.9105 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8850, and take profit in stages at (0.8640 and 0.8540) and stop loss above 0.8990 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair inclined to negate the expected bearish wave mentioned in our weekly report; however, the pair didn’t stabilize above 0.9970 to negate our expectations in general. Today, the pair is stable above 0.9910, after it reversed from the resistance level of the triangle formation, which turned into support at 0.9825 and 0.9780. Stochastic is currently within overbought areas, which prevent us from expecting an upside movement supported by the positivity seen on moving averages. Furthermore, consolidation below 0.9970 weakens the pair’s positive momentum. Therefore, we remain neutral today to observe the pair’s behavior around the critical levels of 0.9970-1.0010.
The trading range for this week is among the major support at 0.9770 and the major resistance at 1.0160
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9910 | 0.8965 | 0.9825 | 0.9780 | 0.9710 |
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| Resistance | 0.9950 | 0.9970 | 1.0010 | 1.0125 | 1.0160 |
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| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
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