Members login
Technical Major Currencies
Written by article default Friday, 07 October 2011 09:27
Morning Report
|
|
We didn’t witness any 4-hour closing below 1.3270, which means that the pair is stable above 23.6% Fibonacci correction of the CD leg of the bullish Crab harmonic pattern, settling above this correction pushed the pair to incline sharply to the upside and settles above 38.2% and then 50% Fibonacci corrections, and that could also trigger an upside move towards the 61.8% Fibonacci correction of the CD leg at 1.3475. we expect the pair to extend the upside move towards further targets of the bullish Crab harmonic pattern as long as the pair is stable above 38.2% Fibonacci correction at 1.3350. Reaching the pattern’s first extended target, which represents 78.6% Fibonacci correction at 1.3565, is still possible.
The trading range for today is among the major support at 1.3110 and the major resistance at 1.3565.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3410 | 1.3390 | 1.3350 | 1.3310 | 1.3270 |
|
|
|||||
| Resistance | 1.3475 | 1.3490 | 1.3525 | 1.3565 | 1.3600 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.3390, and take profit in stages at (1.3475 and 1.3565) and stop loss with 4-hour closing below 1.3270. | ||||
Great British Pound (GBP)
Morning Report
 |
One of the most important levels which we highlighted several times before in our reports was 1.5255 to be one of the downside targets, and we can see on the secondary image of the four-hour timescale how the pair retraced from 1.5269 –yesterday's recorded low- . We classify this rebound as a correction for the previous expected violent bearishness that occurred during this week. Since the longer time frames always beat the shorter ones, we look forward to witness one more technical attempt to clear 1.5330 zone decisively due to our harmonic scenario of forming the CD leg of the duplicated harmonic formation. Stability below 1.5675-1.5720 is required to protect the anticipated intraday bearish direction, while 1.5780 acts as a ceiling for the short term bearish wave.
The trading range for today is among key support at 1.5180 and key resistance at 1.5720.
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 | 1.5390 | 1.5330 | 1.5270 | 1.5180 | 1.5145 |
|
|
|||||
| Resistance | 1.5500 | 1.5555 | 1.5630 | 1.5690 | 1.5720 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5490 targeting 1.5180 and stop loss above 1.5670 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
 |
Adding Fibonacci retracement tool to the previous caught minor bullish harmonic AB=CD pattern proves that the pair is still stabilizing above 38.2% Fibonacci retracement of its CD leg as seen on the provided four-hour chart. This technical factor should assist the pair to incline once more, but Stochastic is still negative despite approaching oversold areas; whilst MACD is currently entering the negative zone. Additionally, SMA 20 covers the present price actions. Hence, we are obliged to stay aside due to the contradiction between indicators' and harmonic rules; noting that a price explosion may occur if it penetrates 76.95.
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 | 76.10 | 75.80 | 75.60 | 75.25 |
|
|
|||||
| Resistance | 76.95 | 77.20 | 77.60 | 77.90 | 78.45 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move. | ||||
Swiss Franc (CHF)
Morning Report
|
|
After touching areas above 0.9300, the pair declined to trade negatively now, yet still stable above 0.9185 accompanied with Stochastic being within oversold areas, which could support forming the CD leg of the suggested Butterfly harmonic pattern. Consolidation below 0.9105 could weaken the intraday upside movement. In general, our positive expectations remain valid for today.
The trading range for today is among the major support at 0.8850 and the major resistance at 0.9415.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9185 | 0.9105 | 0.9080 | 0.9030 | 0.8920 |
|
|
|||||
| Resistance | 0.9230 | 0.9270 | 0.9335 | 0.9370 | 0.9415 |
|
|
|||||
| Recommendation | Based on the chart and explanations above, we recommend buying the pair above 0.9185, and take profit in stages at (0.9335 and 0.9400) and stop loss with 4-hour closing below 0.9080 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
|
|
The pair is still biased to the downside, though the slight incline seen yesterday was only a correction, where the bearish AB=CD harmonic pattern affects the pair, while trading below the harmonic trend line between point A and point C along with consolidation below 50% Fibonacci correction at 1.0400 are reasons behind our continuous negative expectations, especially when Exponential Moving Averages represent good resistance facing the pair’s bullishness. Stochastic is within oversold areas and provides positive crossover which could trigger heavy fluctuations today.
The trading range for today is among the major support at 1.1.0185 and the major resistance at 1.0690.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0375 | 1.0350 | 1.0295 | 1.0230 | 1.0185 |
|
|
|||||
| Resistance | 1.0400 | 1.0475 | 1.0500 | 1.0560 | 1.0620 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.0400, and take profit in stages at (1.0340 and 1.0200) and stop loss above 1.0535 might be appropriate | ||||
|
||||||||||||