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Technical Major Currencies
Written by article default Thursday, 13 October 2011 09:59
Morning Report
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The pair continues to incline, while we witnessed several attempts to breach 127.2% Fibonacci correction of the CD leg of the bullish Crab harmonic pattern, where harmonic analysis principles suggest that consolidation above this level at 1.3825 could support the extension of the upside move towards 161.8% Fibonacci correction of the CD leg. A four-hour closing above 1.3825 is required to confirm the bullishness without the need for correction.
The trading range for today is among the major support at 1.3565 and the major resistance at 1.4010.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3750 | 1.3710 | 1.3665 | 1.3610 | 1.3565 |
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| Resistance | 1.3825 | 1.3840 | 1.3880 | 1.3970 | 1.4010 |
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| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.3710, and take profit in stages at (1.3825 and 1.3910) and stop loss with 4-hour closing below 1.3620, or buying the pair above 1.3825 and take profit in stages at (1.3910 and 1.4010) and stop loss with 4-hour closing below 1.3710 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair was unable to provide any closing above the bottom of point (B) of the double harmonic structure, which could support the resumption of the downside movement. But, further confirmations are required as the level of 1.5780 (bottom of point B) should remain intact through stability below 1.5680. Therefore, we remain neutral today, awaiting more confirmations regarding the pair’s movement around the mentioned critical levels.
The trading range for today is among the major support at 1.5445 and the major resistance at 1.5935.
The short-term trend is to the downside as far as 1.6875 remains intact targeting 1.4225.
| Support | 1.5720 | 1.5680 | 1.5630 | 1.5555 | 1.5445 |
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| Resistance | 1.5780 | 1.5820 | 1.5880 | 1.5935 | 1.5980 |
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| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
Japanese Yen (JPY)
Morning Report
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The pair rebounded sharply to the upside, where as shown above on the chart, it was able to reach the top of point (C) of the previously mentioned bullish AB=CD harmonic pattern. We recognize an ascending channel now, which started from the bottom of point (D) and supports the pair to achieve further extended targets, especially when it's stable above the pattern’s second target at 76.85, which represents the 61.8% Fibonacci correction. In result, we expect an upside move for today.
The trading range for today is among the major support at 75.25 and the major resistance at 78.45.
The short-term trend is to the upside as far as 75.20 remains intact targeting 87.45.
| Support | 77.05 | 76.85 | 76.40 | 76.20 | 75.80 |
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| Resistance | 77.20 | 77.40 | 77.85 | 78.45 | 79.10 |
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| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 76.85, targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair reaches now 23.6% Fibonacci correction of the CD leg of the bearish Butterfly harmonic pattern at 0.8920. The pattern’s first target is around 38.2% Fibonacci correction at 0.8695, and we expect the downside movement to extend. Upside corrections are possible affected by momentum indicators, while any trading below 0.9185 and 0.9105 supports our negative expectations to prevail.
The trading range for today is among the major support at 0.8695 and the major resistance at 0.9235.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8920 | 0.8850 | 0.8835 | 0.8780 | 0.8750 |
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| Resistance | 0.8970 | 0.9030 | 0.9080 | 0.9105 | 0.9185 |
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| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.9030, and take profit at 0.8695 and stop loss with 4-hour closing above 0.9105 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
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The pair’s trading was limited between 88.6% Fibonacci correction of the CD leg and the bottom of C point of the bearish AB=CD harmonic pattern. Consolidation below 1.0255 could support further attempts toward breaching the bottom of point (c) to head directly to 127.2% Fibonacci correction at 1.0005. We expect the downside movement to extend, especially that a descending channel has formed and should support the pair's attempts to achieve more targets of the harmonic structure.
The trading range for today is among the major support at 1.0005 and the major resistance at 1.0340.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0140 | 1.0125 | 1.0085 | 1.0005 | 0.9970 |
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| Resistance | 1.0205 | 1.0255 | 1.0305 | 1.0340 | 1.0375 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.0205, and take profit in stages at (1.0125 and 1.0005) and stop loss above 1.0305 might be appropriate today. | ||||
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