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Technical Major Currencies
Written by article default Tuesday, 11 October 2011 09:10
Morning Report
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The pair is trading above 88.6% Fibonacci correction of the CD leg of the bullish Crab harmonic pattern, and also below the top of point (C) of the pattern. In the same time, the pair is currently above the ascending channel’s breached resistance as shown above on the chart. Consolidation above 1.3680 is needed to confirm the upside movement, as the harmonic rules indicate that stability above the top of point (C) extends the pattern’s target, but consolidation below 1.3620 (88.6% Fibonacci correction) could trigger an intraday downside movement. Therefore, we remain neutral today, awaiting further confirmations.
The trading range for today is among the major support at 1.3390 and the major resistance at 1.3825.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3620 | 1.3565 | 1.3515 | 1.3490 | 1.3410 |
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| Resistance | 1.3680 | 1.3710 | 1.3775 | 1.3825 | 1.3880 |
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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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In line with yesterday's midday technical catch of Stochastic over four-hour time scale, we can see how the indicator overlapped negatively -secondary image- indicating that the pair is gradually losing its upside momentum for the recovery from 1.5270 zones. As we discussed earlier, touching the areas of 1.5780 -neckline of the double top formation- will not change the bearish outlook which is based on this classical probability in addition to the harmonic duplicated probability of forming the CD leg of the duplicated harmonic pattern. Breaching through 1.5555-1.5540 will negate any attempts to re-test 1.5780 and will trigger a panic sell-off.
The trading range for today is among key support at 1.5330 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 | 1.5555 | 1.5495 | 1.5445 | 1.5390 | 1.5330 |
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| Resistance | 1.5690 | 1.5720 | 1.5780 | 1.5820 | 1.5880 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair with a breakout below 1.5540 targeting 1.5270 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The recently established sideways trading range between 76.50 and 76.95 continued dominating the price action during the past period, while MACD traditional and Stochastic can't give off obvious signs as seen on the provided four hour-graph. Consequently, we are obliged to stay aside over intraday basis; noting that a break of 76.95 will trigger panic buying pressures since the pair consolidates above 23.6% Fibonacci of CD leg for the bullish harmonic AB=CD pattern. A break below 75.90-75.80 will damage this pattern completely.
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 |
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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, staying aside until an actionable technical setup presents itself to pinpoint the next big move. | ||||
Swiss Franc (CHF)
Morning Report
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The pair declined to negate our expectations yesterday, but at the same time, the bearish Butterfly harmonic pattern, which settled for levels below 0.9420, could have been activated. Currently, any trading below 0.9420 drives us to expect an intraday downside movement, targeting primarily 0.8935 and then 0.8695, which represent 23.6% Fibonacci correction and the first extended target at 38.2% Fibonacci correction of the CD leg of the Butterfly pattern respectively.
The trading range for today is among the major support at 0.8695 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 | 0.9030 | 0.8970 | 0.8920 | 0.8850 | 0.8835 |
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| Resistance | 0.9080 | 0.9105 | 0.9185 | 0.9230 | 0.9270 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair below 0.9080, and take profit at 0.8935 and stop loss with 4-hour closing above 0.9185 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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The downside movement continued, affected by the bearish AB=CD harmonic pattern, where the pair reached 76.8% Fibonacci correction of the CD leg, which also represents the pattern’s first extended target. Now, Stochastic attempts to turn positive, while the mentioned correction acts as a strong support at 1.0255, but according to harmonic rules, consolidation below 61.8% suggests achieving more targets. Therefore, we remain neutral for today due to the technical conflict seen.
The trading range for today is among the major support at 1.0085 and the major resistance at 1.0500.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0255 | 1.0230 | 1.0185 | 1.0125 | 1.0085 |
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| Resistance | 1.0305 | 1.0340 | 1.0375 | 1.0400 | 1.0475 |
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| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||