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Technical Major Currencies
Written by article default Wednesday, 12 October 2011 08:16
Morning Report
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The pair provided two attempts to close with 4-hour above 1.3680; however it failed, where this level represents the top of point (C) of the bullish Crab harmonic pattern. Consolidation below this level could trigger a downside correction, especially when momentum indicators are trading negatively, with a bearish technical structure seen below the mentioned level. 4-hour closing above 1.3680 is sufficient to lift the pair towards 1.3825 in stages.
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 | 1.3565 | 1.3515 | 1.3490 | 1.3410 | 1.3390 |
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| Resistance | 1.3680 | 1.3710 | 1.3775 | 1.3825 | 1.3840 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3620, and take profit in stages at (1.3565 and 1.3475) and stop loss with 4-hour closing above 1.3710 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Yesterday's dark cloud cover pattern appearing on the secondary image of the daily interval is another technical catalyst that could send the pair lower over intraday basis. All what we need is to witness a sustained breakout below the pivotal support of 1.5555-1.5540 to make sure that the downside rally of forming the CD leg for our caught duplicated pattern-Bat and Crab- will continue over the upcoming sessions. Only a breakout above 1.5780 will give us reasons for concern.
The trading range for today is among key support at 1.5270 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 | 1.5540 | 1.5495 | 1.5445 | 1.5390 | 1.5330 |
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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 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 pair is still moving within the same trading range around 50% Fibonacci retracement of the CD leg of the bullish harmonic AB=CD pattern as seen on the provided four-hour graph. The negativity seen on Stochastic yesterday was relieved , but MACD traditional couldn't change its neutral stance. Thereby, we will continue staying aside until the pair breaches through one of the two edges of the sideways range shown above.
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 setup appears to pinpoint the upcoming big move. | ||||
Swiss Franc (CHF)
Morning Report
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The pair is stable below the exponential moving average 20, which adds more negativity to the pair. The negativiy already started as a result of a possibe completion of the bearish Butterfly pattern . We expect the pair to enter a downside correction, but this correction requires consolidation below 0.9185 to remain valid over intraday basis.
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 | 0.9080 | 0.9030 | 0.8970 | 0.8920 | 0.8850 |
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| Resistance | 0.9105 | 0.9185 | 0.9230 | 0.9270 | 0.9335 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair below 0.9105, 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 pair continues to trade below the Exponential Moving Averages 20 and 50, and also below the second target of the bearish AB=CD pattern at 1.0340. All these technical signs are sufficient for us to expect a downside move during the session today. Consolidation above 1.0385 could weaken our negative expectations significantly.
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 | 1.0385 | 1.0400 | 1.0475 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.0305, and take profit in stages at (1.0230 and 1.0185) and stop loss above 1.0390 might be appropriate today. | ||||