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Technical Major Currencies
Written by article default Wednesday, 14 December 2011 08:52
Morning Report
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As we mentioned before, consolidation below 1.3270 and 1.3220 is negative and could trigger a downside movement, and this is what happened indeed, as we can see the pair confirmed the descending channel which could trigger more bearishness. But, the pair is facing the psychological level of 1.3000, where a breach of this level is required to confirm the resumption of the downside movement, especially when momentum indicators are excessively oversold. Therefore, we expect the downside movement to extend today, but 4-hour closing below 1.3000 is required to confirm our outlook.
The trading range for today is among the major support at 1.2790 and the major resistance at 1.3270.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3000 | 1.2955 | 1.2910 | 1.2875 | 1.2845 |
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| Resistance | 1.3080 | 1.3120 | 1.3160 | 1.3220 | 1.3270 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling the pair with 4-hour closing below 1.3000, and take profit in stages at (1.2910 and 1.2845) and stop loss with 4-hour closing above 1.3080 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair dropped sharply yesterday to breach the important support level at 1.5575-1.5600. As shown on the chart above; the pair has been trading within a main descending channel where the 50-days SMA (colored in green) formed a ceiling for the latest bullish correction, currently Stochastic crossed over negatively and pointing downwards. Accordingly, we expect the bearishness to continue however we may see a slight pullback to test areas around the breached support at 1.5575 which should limit near term upside attempts.
The trading range for today is among key support at 1.5350 and key resistance at 1.5780.
The general trend over short term basis is to the downside targeting 1.4225 as far as areas of1.6875 areas remain intact.
| Support | 1.5460 | 1.5420 | 1.5375 | 1.5325 | 1.5270 |
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| Resistance | 1.5535 | 1.5575 | 1.5630 | 1.5690 | 1.5735 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5575 targeting 1.5270 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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As shown above on the chart, we see that the pair was able to settle above the descending resistance level and also above 23.6% Fibonacci correction of the bullish wave, which started at 76.65 and ended at the top of 78.28, where this correction stands at 77.85 and could be the first support level that could help momentum indicators to get rid of the negativity. Downside corrections are possible and could lead the pair to test the mentioned level, or to extend the correction further to test 61.8% Fibonacci correction around 77.60; but in general, we expect the pair to extend the upside move after relieving momentum indicators from negativity.
The trading range for today is among the major support at 76.55 and the major resistance at 79.15.
The short-term trend is to the upside as far as 75.20 remains intact targeting 87.45.
| Support | 77.85 | 77.60 | 77.30 | 77.15 | 76.95 |
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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 1.77.60, targeting 79.15 and stop loss below 76.65 might be appropriate | ||||
Swiss Franc (CHF)
Morning Report
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Stability above 0.9400 negated our expectations related to the Butterfly pattern, and now we observe the weekly chart to recognize the previously mentioned Deep Crab pattern. Consolidation above 0.9400, which represents 50.0% Fibonacci correction of the Deep Crab pattern, suggests an upside move today towards the pattern’s second target, which represents 61.8% Fibonacci correction at 0.9950. Downside corrections are possible, but consolidation above 0.9235 should support our expectations to remain valid, while stability above 0.9370 supports our outlook significantly.
The trading range for today is among the major support at 0.9235 and the major resistance at 0.9660.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
**New York Candlesticks**
| Support | 0.9400 | 0.9370 | 0.9335 | 0.9290 | 0.9235 |
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| Resistance | 0.9495 | 0.9520 | 0.9580 | 0.9600 | 0.9660 |
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| Recommendation | Based on the chart and explanations above, our opinion is buying the pair around 0.9370, and take profit in stages at (0.9400, 0. 9495 and 0.9580) and stop loss below 0.9290 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
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The upside move continued, affected by consolidation above 50% Fibonacci correction at 1.0275, and now the pair is trading around 61.8% Fibonacci correction at 1.0365. Stochastic is within overbought areas, yet the indicator doesn’t provide any reversal signs, while the RSI is stable above the 50-point level. Therefore, 4-hour closing above 1.0365 suggests the extension of the upside move, where the mentioned closing is required to negate any attempt from Stochastic to provide a negative crossover.
The trading range for today is among the major support at 1.0205 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 | 1.0305 | 1.0275 | 1.0205 | 1.0185 | 1.0140 |
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| Resistance | 1.0365 | 1.0400 | 1.0475 | 1.0495 | 1.0570 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair with 4-hour closing above 1.0365, and take profit in stages at (1.0400 and 1.0570) and stop loss with 4-hour closing below 1.0275 might be appropriate | ||||