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Technical Major Currencies
Written by article default Tuesday, 08 November 2011 07:42
Midday Report
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Moving to the 4-hour interval, we find a possible bearish Head and Shoulders technical structure. This structure was not completed yet, where consolidation below 1.3665 is necessary to confirm the breach of the pattern’s neckline. Therefore, we remain neutral today, awaiting a breach of the mentioned level. We recommend reviewing our weekly report for more details regarding the pair’s next movement.
The trading range for this week is among the major support at 1.3380 and the major resistance at 1.4390.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3680 | 1.3665 | 1.3620 | 1.3565 | 1.3515 |
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| Resistance | 1.3760 | 1.3775 | 1.3825 | 1.3840 | 1.3880 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Midday Report
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The pair has moved mildly downwards below the psychological level of 1.6000 as seen on the provided four-hour chart. We need to witness a sustained breakout below the pivotal support of 1.5945 to make sure that our Bulkowski's complex head and shoulders top pattern is accurate enough. The real confirmation for the pattern will be seen once Vortex indicator shows a negative sign and that may be seen if the neckline areas of 1.5905 is breached as well. Only break above 1.6165 will give us reasons for concern.
The trading range for today is among key support at 1.5720 and key resistance at 1.6165.
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 | 1.5960 | 1.5945 | 1.5905 | 1.5880 | 1.5820 |
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| Resistance | 1.6025 | 1.6075 | 1.6125 | 1.6165 | 1.6200 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5945 targeting 1.5630 and stop loss above 1.6160 might be appropriate. | ||||
Japanese Yen (JPY)
Midday Report
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Moving to the four-hour chart where we can see how the pair was trapped within a very tight range since we published our weekly report this morning. But, it is clear that the stability continued seen above the key support level of 77.70-77.80; thus, we still see chances for achieving upside actions once Stochastic overlaps positively. A break of 78.80 will accelerate inclines; whilst breaching through 76.10 will damage this highly anticipated bullish scenario.
The trading range for today is among key support at 77.20 and key resistance now at 79.55.
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 | 76.40 |
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| Resistance | 78.80 | 79.55 | 79.90 | 80.05 | 80.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.70 targeting 80.00 and stop loss below 76.10 might be appropriate. | ||||
Swiss Franc (CHF)
Midday Report
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Over 4-hour basis, we find a possible Butterfly harmonic structure with its first potential reversal zone at 0.9210. This pattern suggests that the pair could continue and form the pattern’s CD leg supported by the breach of the downside movement as shown above. Therefore, the upside move could extend in the rest of the session today. Momentum indicators could trigger fluctuations, but stability above the bottom of point (C) at 0.8760 is sufficient for our positive outlook to prevail.
The trading range for this week is among the major support at 0.8505 and the major resistance at 0.9400.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8975 | 0.8915 | 0.8850 | 0.8810 | 0.8775 |
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| Resistance | 0.9030 | 0.9080 | 0.9105 | 0.9185 | 0.9210 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair above 0.8915, and take profit in stages at (0.9080 and 0.9210) and stop loss below 0.8760 might be appropriate | ||||
Canadian Dollar (CAD)
Midday Report
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Consolidation above the main support of the upside movement supports our suggested outlook mentioned in our weekly report, while stability above the moving averages drive us to hold onto our weekly expectations as they are. A breach of 1.0255 could trigger a strong bullish wave.
The trading range for this week is among the major support at 0.9700 and the major resistance at 1.0475.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0140 | 1.0110 | 1.0055 | 1.0000 | 0.9970 |
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| Resistance | 1.0205 | 1.0255 | 1.0275 | 1.0305 | 1.0340 |
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| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0140, and take profit in stages at (1.0255 and 1.0305) and stop loss below 1.0000 might be appropriate. | ||||