Members login
Technical Major Currencies
Written by article default Wednesday, 21 September 2011 08:11
Morning Report
|
|
We negated our negative expectations and turned positive in our previous report, where we expected the positivity to return after the pair reached around 1.3665 again, which supported the pair’s positive momentum. Currently, the pair is trading positively above the Simple Moving Average 20, in attempts to breach 38.2% Fibonacci correction. A breach of this correction at 1.3720 could support the pair to extend the upside move, despite the fact that Stochastic is within overbought areas, where consolidation above 1.3665 support our positive expectations to remain valid.
The trading range for today is among the major support at 1.3320 and the major resistance at 1.3900
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3680 | 1.3665 | 1.3600 | 1.3570 | 1.3530 |
|
|
|||||
| Resistance | 1.3760 | 1.3805 | 1.3860 | 1.3880 | 1.3900 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.3680, and take profit in stages at (1.3760 and 1.3800) and stop loss below 1.3590 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
 |
The secondary four-hour graph shows how the pair has been trapped within a tight range since our last report was published; whilst the candlesticks structure indicates that the pair is gradually losing the upside correctional steam. Thereby, we hold onto our bearish predications over intraday basis, supported by the classical negativity appearing on the weekly studies where the double top is still in progress. A break of 1.5630 will trigger a panic sell-off over the upcoming period while the bearishness will be delayed with a break above 1.5935 zones.
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 | 1.5690 | 1.5630 | 1.5545 | 1.5515 | 1.5475 |
|
|
|||||
| Resistance | 1.5780 | 1.5820 | 1.5880 | 1.5935 | 1.6000 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5755 targeting 1.5475 and stop loss above 1.5935 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
 |
The pair fluctuated violently during the past four hours after touching SMA 20 -colored in green- as seen on the provided four hour-hour chart. Inside yesterday's suggested falling wedge pattern, we can see a new harmonic probability of forming a bullish harmonic AB=CD pattern. Therefore, we are still waiting for a reversal but not before breaching the resistance line of our caught falling wedge pattern. Only a breakout with a four hour closing below 75.80 will give us reasons for reconsidering our proposed Elliott count.
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 | 76.20 | 75.80 | 75.60 | 75.25 | 74.85 |
|
|
|||||
| Resistance | 76.65 | 76.95 | 77.20 | 77.60 | 77.90 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 76.75 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
|
|
The pair is currently trading around the potential reversal zone of the Butterfly pattern at 0.8920 in attempts to breach this level. But, observing momentum indicators, we find they are ready to reverse negatively. Furthermore, consolidation below the psychological level at 0.9000 could force the pair to reverse to the downside. We hold onto our negative expectations, supported by the bearish harmonic structure, but stability above 0.8920 suggests the upside move to extend towards 0.9105.
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 | 0.8850 | 0.8820 | 0.8780 | 0.8750 | 0.8675 |
|
|
|||||
| Resistance | 0.8990 | 0.9000 | 0.9040 | 0.9105 | 0.9180 |
|
|
|||||
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8920, and take profit in stages at (0.8640 and 0.8540) and stop loss above 0.9040 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
|
|
The pair returned to trade again around the previously breached ascending support level; however the movement is limited between 0.9910 from below and 0.9970 from above. Stability above 0.9970 could negate the intraday downside movement, and in result negating our weekly expectations in general. Stochastic is turning negative, which suggests another attempt for a downside movement. Stability above the Exponential Moving Averages 20 and 50 and above 0.9910 along with stability below 0.9970 drive us to remain neutral today.
The trading range for today is among the major support at 0.9710 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 | 0.9865 | 0.9850 | 0.9825 | 0.9780 | 0.9710 |
|
|
|||||
| Resistance | 0.9950 | 0.9970 | 1.0010 | 1.0080 | 1.0125 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
|
||||||||||||