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Technical Major Currencies
Written by article default Tuesday, 15 November 2011 10:21
Morning Report
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Trading below 1.3665 supports the return of the negative outlook, especially when the pair is stable below the moving averages 20 and 50, which negated our expectations for upside movement yesterday. But, Stochastic is within oversold areas, while MACD could turn positive, which contradicts the breach of 1.3665 seen yesterday. We remain neutral today, where the bearish Head and Shoulders pattern contradicts with other technical indicators; therefore we wait for further confirmations regarding the pair’s next move.
The trading range for today is among the major support at 1.3380 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 | 1.3665 | 1.3695 | 1.3740 | 1.3780 | 1.3825 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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With a long black candlestick that has engulfed Friday's sharp recovery; the bearishness came back into focus. The pair has slumped aggressively breaching through the initial support of 1.5905 opening the door up for further weakness towards the next Fibonacci level of the entire downside rally from 1.6615 to 1.5270 since 61.8% has proved its solidity. The secondary image explains why we were well-disposed to the bearishness as we mentioned in yesterday's midday report where the daily closing was below SMA 50 -colored in red- as seen on our provided graph. Only a break of 1.6125-1.6165 will give us a reason for concern.
The trading range for today is among key support at 1.5630 and key resistance at 1.6075.
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 | 1.5820 | 1.5780 | 1.5720 | 1.5660 | 1.5630 |
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| Resistance | 1.5905 | 1.5960 | 1.6000 | 1.6025 | 1.6075 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5920 targeting 1.5635 and stop loss above 1.6105 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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In line with our previous report, the pair moved mildly upwards during the Asian session touching 50% Fibonacci retracement of the entire upside wave from 75.50 to 79.50 zones as seen on the provided four-hour graph. Now, Stochastic may cause some kind of fluctuation to get rid of its negativity before moving higher once more as RSI 14 is still trending upwards. A break of 77.80 will confirm the bullish scenario and will confirm our technical idea of finishing the correction for the bullishness that started at 75.50 areas.
The trading range for today is among key support at 76.10 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 | 76.95 | 76.60 | 76.40 | 76.10 | 75.80 |
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| Resistance | 77.30 | 77.60 | 77.90 | 78.45 | 78.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.95 targeting 78.45 and stop loss below 76.10 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The support level around 0.8975 was sufficient to support the pair’s positive momentum, where the pair is currently trading above the top of the suggested (X) point of the Butterfly harmonic structure, which could be completed at 0.9210, as this level represents the first potential reversal zone. Stochastic is within overbought areas, which could trigger heavy fluctuations and maybe downside corrections, but consolidation above 0.9030 should support our positive expectations to remain valid. The suggested harmonic pattern is bearish; therefore, we recommend observing the pair around 0.9210, where a breach of this level indicates that the upside move could extend to the second potential reversal zone, while in case the pair failed to breach this level, it could enter a downside correction.
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 | 0.9080 | 0.9030 | 0.8975 | 0.8950 | 0.8900 |
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| Resistance | 0.9135 | 0.9185 | 0.9210 | 0.9230 | 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 0.8950 might be appropriate today. | ||||
Canadian Dollar (CAD)
Morning Report
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Consolidation below 1.0205 is seen, but at the same time the exponential moving averages 20 and 50 supports the pair from below along with the support level at 1.0085. The relative strength index attempts now to settle above the 50-point level, while Stochastic is almost within overbought areas, yet attempts to provide a positive crossover. We expect that any 4-hour closing above 1.0085 is sufficient to support our positive outlook, while stability above 1.0255 should confirm our 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 | 1.0140 | 1.0100 | 1.0085 | 1.0025 | 1.0000 |
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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 buying the pair around 1.0140, and take profit in stages at (1.0340 and 1.0475) and stop loss with 4-hour closing below 1.0080 might be appropriate | ||||
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