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Technical Major Currencies
Written by article default Tuesday, 13 December 2011 07:21
Morning Report
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The pair failed to settle above the level of 1.3380, and then breached the level of 1.3270, which led us to negate our positive outlook and recognize a descending channel that controlled the pair’s movement from the top at 1.4247. Now, momentum indicators are within oversold areas, but consolidation below the main resistance of the descending channel at 1.3380 drives us to expect a downside movement today, in attempts to breach the level of 1.3145 and then moving south towards areas around 1.3000, passing through the minor support level at 1.3120.
The trading range for today is among the major support at 1.3000 and the major resistance at 1.3380.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3160 | 1.3120 | 1.3080 | 1.3030 | 1.3000 |
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| Resistance | 1.3220 | 1.3270 | 1.3315 | 1.3365 | 1.3380 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling the pair around 1.3210, and take profit in stages at (1.3120 and 1.3000) and stop loss with 4-hour closing above 1.3315 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The consolidation continued around the initial support of 1.5590 where 23.6% Fibonacci retracement of the downside rally from 1.6615 to the former low of 1.5270. Actually, the negative daily closing below SMA20 & SMA50 combination is seen as a proof that Cable may clear the aforementioned important level. At the same time, Stochastic continues reflecting its bearish tendency; thus, we hold onto our bearish predictions over intraday basis, supported by the harmonic outlook over short term basis. A break of 1.5420 will accelerate declines towards 1.5270.
The trading range for today is among key support at 1.5375 and key resistance at 1.5820.
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 | 1.5540 | 1.5510 | 1.5460 | 1.5420 | 1.5375 |
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| Resistance | 1.5630 | 1.5680 | 1.5720 | 1.5780 | 1.5820 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5590 targeting 1.5270 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair has inclined steadily closing above SMA 50 and SMA 100 as seen on the main four-hour graph, while the daily chart-secondary image- shows how it formed a clear bullish candlestick pattern that breached through 77.80 zones. Some kind of retrace might be seen before resuming the upside recovery started at 76.55 zones in order to relieve momentum indicators. A break above 78.10-78.30 will accelerate; whilst a break below 76.55 will give us a reason for concern.
The trading range for today is among key support at 76.65 and key resistance now at 79.15.
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 | 78.30 | 78.45 | 79.15 | 79.55 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.70 targeting 79.55 and stop loss below 76.65 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair failed to settle below the level of 0.9235, and then breached the resistance at 0.9335, which sent the pair towards the second potential reversal zone of the Butterfly harmonic pattern. But now, the pattern is not ideal, as we can see the suggested CD leg reached more than 261.8% Fibonacci of the BC leg. The pattern is not ideal; therefore we need to observe the pair’s behavior around the level of 0.9400 to confirm the validity of harmonic structure. Therefore, we remain neutral today awaiting more confirmations.
The trading range for today is among the major support at 0.9180 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.
**New York Candlesticks**
| Support | 0.9335 | 0.9290 | 0.9260 | 0.9235 | 0.9180 |
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| Resistance | 0.9400 | 0.9420 | 0.9495 | 0.9520 | 0.9600 |
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| Recommendation | Based on the charts and explanations above we remain neutral, awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
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The pair is facing 50% Fibonacci correction at 1.0275 again, after it settled above the exponential moving averages 20 and 50. This move was accompanied with the positivity seen on Stochastic, where despite that overbought signs seen on the indicator, we detect no signs for a negative crossover. The relative strength index is positive and stable above the 50-point level. Therefore, we expect that consolidation above 1.0275 could support the upside move to extend during the session today.
The trading range for today is among the major support at 1.0100 and the major resistance at 1.0495.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0205 | 1.0185 | 1.0140 | 1.0100 | 1.0055 |
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| Resistance | 1.0275 | 1.0305 | 1.0365 | 1.0400 | 1.0475 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0255, and take profit in stages at (1.0305 and 1.0400) and stop loss with 4-hour closing below 1.0140 might be appropriate | ||||