Members login
Technical Major Currencies
Written by article default Wednesday, 02 November 2011 07:37
Morning Report
|
|
The decline seen yesterday was sufficient to pressure the pair towards areas below 1.3695, but the pair returned to trade above this level today. We expect an upside correction, supported by the positivity seen on momentum indicators in addition to consolidation above the mentioned level. But, a 4-hour closing below 1.3640 should be sufficient to push the pair further to the downside towards 1.3565.
The trading range for today is among the major support at 1.3380 and the major resistance at 1.4080.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3695 | 1.3640 | 1.3600 | 1.3565 | 1.3515 |
|
|
|||||
| Resistance | 1.3780 | 1.3825 | 1.3880 | 1.3910 | 1.3940 |
|
|
|||||
| 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 1.3880) and stop loss with 4-hour closing below 1.3640 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
 |
The pair has mildly retraced from the horizontal neckline of the potential head and shoulders top pattern as seen on the secondary image of the four-hour interval. It seems that the market is on its way top form the right shoulder of this pattern before moving downwards once more. Actually, the left shoulder's construction suggests that we may witness one of Bulkowski's caught patterns as it was complicated shoulder; thus, it could be a complex head and shoulders pattern and time will tell. Moving to the main daily chart, we can notice that yesterday's long black candlestick didn't change the trend's exhaustion on Vortex; whilst RSI 14 is still negative suggesting that 61.8% Fibonacci has limited the effect of the harmonic AB=CD pattern. To recap, the bearishness is still favored over intraday basis and a break of 1.5905 will accelerate declines.
The trading range for today is among key support at 1.5720 and key resistance at 1.6295.
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 | 1.5935 | 1.5820 | 1.5780 | 1.5720 | 1.5630 |
|
|
|||||
| Resistance | 1.6000 | 1.6075 | 1.6125 | 1.6150 | 1.6225 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.6035 targeting 1.5780 and stop loss above 1.6225 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
 |
The pair continues consolidating above the initial broken resistance -turned into support- of 77.70-77.80 as seen on the provided daily chart. In the interim, momentum and trend indicators are still positive, designating that the bullishness may continue over the upcoming sessions. A break of 78.80 will weaken the solidity of 79.55 and will assist the pair to beat the psychological level of 80.00. On the downside, a break back below 76.80-76.40 will give us a reason for pause.
The trading range for today is among key support at 76.10 and key resistance now at 82.25.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 77.90 | 77.20 | 76.95 | 76.60 | 76.10 |
|
|
|||||
| Resistance | 78.80 | 79.55 | 79.90 | 80.05 | 81.15 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.90 targeting 80.05 and stop loss below 76.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
|
|
The pair retested 23.6% Fibonacci correction at 0.8930; however, it didn’t provide consolidation above this level. This will keep the bearish Butterfly harmonic pattern effective, where the downside movement, which started from the top of point (D) is still valid, but consolidation below the mentioned correction is necessary to confirm the bearishness. On the other hand, stability below the Exponential Moving Average 50 at 0.8805 is critical to confirm our negative outlook.
The trading range for today is among the major support at 0.8505 and the major resistance at 0.9030.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8805 | 0.8780 | 0.8740 | 0.8695 | 0.8625 |
|
|
|||||
| Resistance | 0.8900 | 0.8930 | 0.8990 | 0.9030 | 0.9080 |
|
|
|||||
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8900, and take profit in stages at (0.8805 and 0.8740) and stop loss above 0.8990 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
|
|
The pair is trading above the ascending main support, but still, it didn’t provide a breach of 1.0255. Furthermore, the return of the downside movement requires trading below this support level shown in red at 1.0025. Stochastic and RSI are within overbought areas, but the Exponential Moving Averages are positive and attempt to provide a positive crossover. Therefore, we remain neutral today, awaiting further confirmations.
The trading range for today is among the major support at 0.9905 and the major resistance at 1.0360.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0125 | 1.0085 | 1.0025 | 0.9970 | 0.9905 |
|
|
|||||
| Resistance | 1.0205 | 1.0255 | 1.0275 | 1.0305 | 1.0340 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
|
||||||||||||