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Technical Major Currencies
Written by article default Tuesday, 27 September 2011 08:12
Morning Report
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Over four-hour basis, the pair was able to consolidate above the Simple Moving Average 20. The pair is still within the descending channel; however, stability above the mentioned level suggests a test of the channel’s main resistance. Regarding momentum indicators, they reflect an intraday conflict, where Stochastic provides a negative crossover within oversold areas, while MACD attempts to reduce negativity. All these factors together drive us to remain neutral today, awaiting further confirmations.
The trading range for today is among the major support at 1.3220 and the major resistance at 1.3840.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3490 | 1.3435 | 1.3395 | 1.3320 | 1.3220 |
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| Resistance | 1.3570 | 1.3600 | 1.3665 | 1.3710 | 1.3775 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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The pair continued the correction of the big downside wave that started from 1.6615 zones where the four-hour graph shows that a bearish flag continuation pattern is in progress. Henceforth, we hold onto our bearish predictions over intraday basis, supported by the double top formation appearing on the weekly graph. Actually, we need to witness a sustained breakout below the initial support of 1.4495 to confirm the aforesaid flag pattern; whilst areas between 1.5780 and 1.5820 should act as a ceiling for our proposed classical overview.
The trading range for today is among key support at 1.5255 and key resistance at 1.5820.
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 | 1.5445 | 1.5390 | 1.5330 | 1.5255 | 1.5180 |
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| Resistance | 1.5630 | 1.5690 | 1.5720 | 1.5780 | 1.5820 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5495 targeting 1.5180 and stop loss above 1.5690 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair is still moving within a sideways trading range where the struggle continues around SMA 20 as seen on the provided four-hour chart. There is no clear sign on momentum and oscillators indicators; thus, the neutrality is favored over intraday basis. Note that a break above 76.95 will activate the numerously explained Elliott sequence, while a breakout below 75.80 will damage it 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 75.20 remain intact.
| Support | 76.10 | 75.80 | 75.60 | 75.45 | 75.25 |
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| Resistance | 76.60 | 76.75 | 76.95 | 77.20 | 77.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Swiss Franc (CHF)
Morning Report
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According to our weekly report, the pair is still trading within levels that support our positive expectations, where stability above 0.8850 and along with a daily closing above 0.8920 supports the upside move to continue. But, over daily basis and as shown above on the chart, we find momentum indicators could possibly turn negative, which also could be accompanied with a retest of the descending channel’s main resistance that was previously breached. This possibility is high now and the minor image shows us that a breach of 0.8995 is sufficient to confirm our intraday bearish scenario. Therefore, we remain neutral today awaiting further confirmations.
The trading range for today is among the major support at 0.8820 and the major resistance at 0.9230.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9000 | 0.8990 | 0.8920 | 0.8850 | 0.8820 |
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| Resistance | 0.9080 | 0.9105 | 0.9150 | 0.9190 | 0.9230 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
The pair returned to consolidate below 61.8% Fibonacci correction at 1.0290-1.0300. In addition, Stochastic is turning negative, which could trigger a test of lower levels before resuming the upside move. Over hourly basis, we can see a bearish classic pattern that will be completed as a breach of 1.0230 is seen. Therefore, we remain neutral today awaiting further confirmations.
The trading range for today is among the major support at 1.0125 and the major resistance at 1.0400
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0230 | 1.0185 | 1.0125 | 1.0085 | 1.0010 |
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| Resistance | 1.0290 | 1.0350 | 1.0375 | 1.0400 | 1.0450 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
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