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Technical Major Currencies
Written by article default Tuesday, 20 December 2011 07:39
Morning Report
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The pair is trading narrowly in areas around 161.8% Fibonacci of the correctional upside move, which started from 1.3211 and ended at the bottom of 1.3548, where this level stands at 1.3000. Stochastic attempts to provide a positive crossover, while the Relative Strength Index is unable to reflect clear positivity. The pair is also unable to settle above the exponential moving average 20, but at the same time, consolidation below 1.3000 is required to confirm the downside movement. Therefore, we remain neutral today, awaiting more confirmations.
The trading range for today is among the major support at 1.2875 and the major resistance at 1.3120.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3000 | 1.2975 | 1.2955 | 1.2910 | 1.2875 |
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| Resistance | 1.3045 | 1.3080 | 1.3100 | 1.3120 | 1.3160 |
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| Recommendation | Based on the chart and explanations above, we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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Yesterday's negative closing below SMA 20 and below 23.6% Fibonacci retracement of the entire downside rally from 1.6615 to 1.5270 is seen as a new technical catalyst that argues us to suggest more bearishness over intraday basis. In the interim, we still see chances for more fluctuation due to the positivity on Stochastic. A break of 1.5420 will accelerate the declines; whilst a daily closing above SMA 50 at 1.5730 will give us a reason for concern.
The trading range for today is among key support at 1.5270 and key resistance at 1.5720.
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 | 1.5460 | 1.5420 | 1.5375 | 1.5320 | 1.5270 |
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| Resistance | 1.5560 | 1.5630 | 1.5680 | 1.5720 | 1.5750 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5555 targeting 1.5270 and stop loss above 1.5730 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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The pair didn't show any big move since yesterday, but we can notice that Stochastic was relieved successfully as seen on the provided four-hour chart. Hence, we hold onto our bullish predictions over intraday basis, supported by stability above SMA 50 and SMA 100. A break of 78.30 will actuate bulls to enter the market. Conversely, breaching through 76.40 will negate the bullish outlook.
The trading range for today is among key support at 76.10 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 | 76.40 |
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| Resistance | 78.10 | 78.30 | 78.45 | 78.80 | 79.15 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.65 targeting 79.55 and stop loss below 76.40 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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The pair is currently stable in areas between the exponential moving average 20 and 50, yet above the main support of the upside move around 0.9330. These signs drive us to hold onto our positive expectations as they are. The Relative Strength Index is trading negatively below the 50-point level, which in result suggests that a 4-hour closing below 0.9235 could activate the negativity.
The trading range for today is among the major support at 0.9235 and the major resistance at 0.9495.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
**New York Candlesticks**
| Support | 0.9350 | 0.9330 | 0.9290 | 0.9260 | 0.9235 |
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| Resistance | 0.9385 | 0.9400 | 0.9440 | 0.9495 | 0.9520 |
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| Recommendation | Based on the chart and explanations above, our opinion is buying the pair around 0.9330, and take profit in stages at (0.9490, 0.9590 and 0.9660) and stop loss below 0.9235 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
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The pair closed the session yesterday above 61.8% Fibonacci correction at 1.0365, which suggests that the pair attempts to remain positive despite the negativity seen on momentum indicators. Therefore, our positive expectations remain valid unless we see a 4-hour closing below 1.0275.
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 | 1.0365 | 1.0305 | 1.0275 | 1.0255 | 1.0205 |
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| Resistance | 1.0400 | 1.0475 | 1.0495 | 1.0520 | 1.0570 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 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 | ||||
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