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Technical Major Currencies
Written by article default Friday, 11 November 2011 07:39
Morning Report
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The pair inclined yesterday, but as shown on the chart above the pair is still stable below the neckline of the Head and Shoulders pattern, and also below the moving averages 20 and 50, where all these signs together suggest the return of the downside movement, especially after Stochastic got rid of the positivity seen yesterday.
The trading range for today is among the major support at 1.3285 and the major resistance at 1.3840.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
**New York Candlesticks**
| Support | 1.3620 | 1.3565 | 1.3515 | 1.3490 | 1.3410 |
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| Resistance | 1.3665 | 1.3695 | 1.3740 | 1.3780 | 1.3840 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3650, and take profit in stages at (1.3410 and 1.3285) and stop loss with 4-hour closing above 1.3740 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The pair continued fluctuating around the neckline suggested for the potential head and shoulders top pattern due to the oversold signal appearing on RSI 14. At the same time, Vortex-trend indicator- continued giving off a strong bearish sign which may assist the pair to clear the former support around 1.5905. Over daily basis, Stochastic didn’t change its bearish sign; thus, we keep our bearish predictions intact over intraday basis. A sustained break below 1.5905 will accelerate but areas of 1.6165 should protect the classical probability.
The trading range for today is among key support at 1.5630 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 | 1.5880 | 1.5820 | 1.5780 | 1.5720 | 1.5630 |
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| Resistance | 1.5960 | 1.6000 | 1.6075 | 1.6125 | 1.6165 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5960 targeting 1.5635 and stop loss above 1.6165 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair is still struggling around 50% Fibonacci retracement of the entire upside rally from 75.50 zones to 79.50 areas as seen on the provided four-hour graph. Momentum indicator's relief technical process is in progress where we believe that the full relief will be seen around 61.8% Fibonacci- ideal correction- before moving higher once more. A break of 77.80-77.90 is required to confirm resuming the upside recovery started at 75.50 areas. On the other side, areas of 76.10 should hold to protect our predictions.
The trading range for today is among key support at 76.10 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 | 77.20 | 77.05 | 76.95 | 76.60 | 76.10 |
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| Resistance | 77.90 | 78.45 | 78.80 | 79.55 | 79.90 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.80 targeting 80.05 and stop loss below 76.40 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair is positively biased, where it is still stable above the harmonic support level drawn from the bottom of (A) point and the bottom of (C) point of the suggested Butterfly harmonic pattern. We still expect that consolidation above 0.8900 is positive and could support the extension of the upside move towards the first potential reversal zone of the Butterfly pattern at 0.9210.
The trading range for today is among the major support at 0.8850 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 | 0.9030 | 0.8975 | 0.8950 | 0.8900 | 0.8880 |
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| Resistance | 0.9080 | 0.9105 | 0.9185 | 0.9210 | 0.9270 |
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| Recommendation | Based on the chart and explanations above, we recommend buying the pair around 0.9030, and take profit at 0.9210 and stop loss below 0.8900 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair failed to settle above the neckline of the bullish structure, but at the same time it consolidated above the exponential moving averages 20 and 50, while Stochastic is positive. The relative strength index is stable above the 50-point level. All these signs together drive us to expect the pair to provide another attempt to turn positive, while 4-hour closing above 1.0255 should confirm our bullish outlook.
The trading range for today is among the major support at 0.9970 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.
**New York Candlesticks**
| Support | 1.0185 | 1.0140 | 1.0100 | 1.0080 | 1.0025 |
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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 1.0185, and take profit in stages at (1.0340 and 1.0475) and stop loss below with 4-hour closing below 1.0100 might be appropriate | ||||
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