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Technical Major Currencies
Written by article default Monday, 05 December 2011 07:07
Weekly Report 05/12 – 09/ 12/ 2011
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The pair declined sharply on Friday from areas above the resistance at 1.3515; however, areas above 78.6% Fibonacci correction at 1.3380 were able to stop the bearishness as shown above on the chart. Stochastic is positively biased, while the exponential moving averages 20 and 50 support the positivity, yet the pair should return above the exponential moving average 20 at 1.3425. In general, the falling wedge pattern is still valid, and could affect the pair positively as long as the pair is stable above 1.3270.
The trading range for this week is among the major support at 1.3000 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
| Support | 1.3380 | 1.3305 | 1.3270 | 1.3220 | 1.3160 |
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| Resistance | 1.3425 | 1.3490 | 1.3515 | 1.3565 | 1.3620 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.3380, and take profit in stages at (1.3490 and 1.3620) and stop loss below 1.3220 might be appropriate | ||||
Great British Pound (GBP)
Weekly Report 05/12 – 09/ 12/ 2011
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Friday's violent decline has proved the pair's bearish tendency where the pair was taken once more towards 23.6% Fibonacci retracement of the entire downside rally from 1.6615 to the significant low of 1.5270 as seen on the provided daily chart. Furthermore, we added SMA 20 to the major SMA 50-check the previous report- where we notice that the movements that created the upper shadows of the previous three candlesticks should be classified as retesting actions for SMA 20. Ultimately, we suggest potential downside resumption during this week, supported by the negativity appearing on Stochastic. The pivotal support resides at 1.5420 and a break of which will accelerate declines.
The trading range for this week is among key support at 1.5180 and key resistance at 1.5935.
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 | 1.5510 | 1.5460 | 1.5375 | 1.5270 | 1.5180 |
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| Resistance | 1.5680 | 1.5720 | 1.5780 | 1.5820 | 1.5935 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5630 targeting 1.5335 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 05/12 – 09/ 12/ 2011
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Respecting our previous technical comment, the pair has soared touching 38.2% Fibonacci retracement of the upside wave from 75.50 to 79.50 where momentum indicators were taken to the overbought areas. Consequently, we believe that the pair may show some kind of correction to relieve momentum indicators before resuming the upside rally which is based on the bullishness appearing on the daily candlestick formation-secondary image-. SMA 100 and the recently added SMA 50 are carrying the bullishness as well. On the upside, a break back below 76.55 zones will give us a reason for concern.
The trading range for this week is among key support at 75.80 and key resistance now at 80.50.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 77.60 | 77.30 | 77.15 | 76.95 | 76.55 |
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| Resistance | 78.10 | 78.45 | 79.15 | 79.55 | 80.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.80 targeting 79.55 and stop loss below 76.65 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 05/12 – 09/ 12/ 2011
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The pair declined on Friday, yet it returned now to consolidate in areas around 0.9235. The incline seen doesn’t affect the bearish Butterfly pattern, yet consolidation below 0.9330 suggests the return of the downside movement, while stability below the level of 0.9235 supports our negative outlook significantly. Stochastic is within overbought areas which provides further support to our negative expectations.
The trading range for this week is among the major support at 0.8880 and the major resistance at 0.9560.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9195 | 0.9110 | 0.9080 | 0.9045 | 0.8980 |
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| Resistance | 0.9235 | 0.9290 | 0.9305 | 0.9335 | 0.9370 |
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| Recommendation | Based on the chart and explanations above, our opinion is selling the pair around 0.9235, and take profit in stages at (0.9110 and 0.8980) and stop loss above 0.9335 might be appropriate | ||||
Canadian Dollar (CAD)
Weekly Report 05/12 – 09/ 12/ 2011
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The pair inclined after reaching the previously suggested ascending support level, while Stochastic is currently positive. Consolidation above 1.0070 supports the upside move to extend, but stability above the exponential moving averages 20 and 50 is required to confirm the bullishness and breach the level of 1.0275. But, we suggests that the upside move could continue, yet heavy fluctuations are possible until the RSI breaches the 50-point level positively.
The trading range for this week is among the major support at 0.9825 and the major resistance at 1.0570.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0140 | 1.0110 | 1.0070 | 1.0000 | 0.9970 |
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| Resistance | 1.0205 | 1.0275 | 1.0305 | 1.0375 | 1.0400 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0140, and take profit in stages at (1.0275 and 1.0375) and stop loss with 4-hour closing below 1.0070 might be appropriate | ||||
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