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Technical Major Currencies
Written by article default Friday, 18 November 2011 07:57
Morning Report
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The pair continues to consolidate below 1.3550 level, while stochastic is losing the bearish momentum, at the same time an intraday descending triangle may be in the process of the completion suggesting a continuation of the bearish wave. However, in general there are two scenarios, a bullish falling wedge formation or a normal descending channel as shown in image, to confirm the bullish wedge we need a breach above 1.3600, on the other hand a breach below the 78.6% Fibonacci correction level around 1.3380 will confirm a continuation to the downside. For now we will continue to expect intraday bearishness supported by the intraday descending triangle.
The trading range for today is among the major support at 1.3270 and the major resistance at 1.3665.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3460 | 1.3420 | 1.3380 | 1.3355 | 1.3200 |
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| Resistance | 1.3500 | 1.3540 | 1.3575 | 1.3600 | 1.3640 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3540 targeting 1.3450 and 1.3365 , stop loss with four-hour closing above 1.3600 | ||||
Great British Pound (GBP)
Morning Report
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After recording 1.5813 -high of yesterday's trading- where Cable was very close to our proposed entry point, it moved once more to the downside. The current consolidation is seen as normal price behaviors to assist the pair to get rid of the oversold sign appearing on RSI 14. Overall, the bearish classical pattern is still affecting the pair negatively while one more negative four-hour closing below 50% Fibonacci of the entire downside wave from 1.6615 to 1.5270 will accelerate the awaited decline towards 1.5610 areas. Only a break of the neckline areas around 1.5905 will give us a reason for concern.
The trading range for today is among key support at 1.5475 and key resistance at 1.6000.
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 | 1.5720 | 1.5660 | 1.5630 | 1.5555 | 1.5475 |
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| Resistance | 1.5785 | 1.5820 | 1.5905 | 1.5935 | 1.6000 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5825 targeting 1.5610 and stop loss above 1.6000 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair continued its calm trading which gradually takes Stochastic to the oversold areas as seen on the provided four-hour graph. Now, we may witness a retest of 76.4% Fibonacci of the upside movements form 75.50 to 79.50 since SMA 100 pressures the pair negatively before moving upwards according to the positive scenario discussed earlier. RSI 14 is also approaching the value of 30.00 once more; thus, the bullishness may start sooner and it will be confirmed with a breakout above 77.50. On the upside, areas between 76.10 and 75.80 should hold; otherwise the low of 75.50 will be under attack.
The trading range for today is among key support at 75.60 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 | 76.60 | 76.40 | 76.10 | 75.80 | 75.50 |
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| Resistance | 76.95 | 77.30 | 77.60 | 77.90 | 78.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.15 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair continued trading positively after achieving a mild correction yesterday. This correction should be seen as a required technical process to relieve RSI 14 indicator which started moving downwards from the value of 70.00 as seen on the provided four-hour chart. We have two major bullish technical factors in addition to stability above SMA 50 and SMA 100 as follows:
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Trading continued seen within the short term upside channel.
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Stability above 100% Fibonacci expansion level of A-B-C points.
Actually, this classical outlook matches reaching the second potential reversal zones -D- of the harmonic structure discussed earlier and we recommend reviewing the weekly report for more details about the butterfly pattern.
The trading range for today is among the major support at 0.8975 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 | 0.9185 | 0.9105 | 0.9080 | 0.9030 | 0.8975 |
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| Resistance | 0.9225 | 0.9270 | 0.9300 | 0.9370 | 0.9400 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9155 targeting 0.9370 and stop loss below 0.9000 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair was able to consolidate above the main support level shown above in red, while the bullish technical structure continues to push the pair higher. Therefore, we expect the upside movement to continue over intraday basis, noting that Stochastic is negative, which could trigger fluctuations around the mentioned main support before reaching the targets around 1.0500.
The trading range for today is among the major support at 1.0185 and the major resistance at 1.0496.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0260 | 1.0185 | 1.0140 | 1.0100 | 1.0080 |
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| Resistance | 1.0305 | 1.0340 | 1.0375 | 1.0400 | 1.0440 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0260, and take profit in stages at (1.0360 and 1.0475) and stop loss with 4-hour closing below 1.0140 might be appropriate | ||||
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