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Technical Major Currencies
Written by article default Wednesday, 21 December 2011 07:40
Morning Report
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The pair resides now the exponential moving average 50 and 127.2% Fibonacci correction as shown above. Stochastic approaches overbought areas, while the positivity seen on the relative strength index started to weaken. These facts prove the continuous effect of the descending channel, where the channel’s main resistance stands at 1.3210 and any trading below this level suggests the return of the downside movement. A breach of this level could postpone the downside movement over intraday basis.
The trading range for today is among the major support at 1.2955 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 | 1.3080 | 1.3045 | 1.3000 | 1.2975 | 1.2955 |
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| Resistance | 1.3120 | 1.3160 | 1.3220 | 1.3270 | 1.3315 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling the pair below 1.3120, and take profit in stages at (1.3045 and 1.2955) and stop loss with 4-hour closing above 1.3220 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
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The pair has soared yesterday achieving a very important closing above SMA 20 -grren- and above 23.6% Fibonacci retracement of the downside wave from 1.6615 to the significant low of 1.5270. At the same time, SMA 50 has limited the bullishness and it represents a very hard technical obstacle that may prevent Cable from additional upside movements; whilst 38.2% Fibonacci should act as a ceiling for the intraday traders since Stochastic is gradually losing its upside steam. Therefore, we prefer staying aside today until an actionable setup presents itself; noting that a break of 1.5590 will bring the bearishness back into focus.
The trading range for today is among key support at 1.5420 and key resistance at 1.5880.
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 | 1.5630 | 1.5555 | 1.5515 | 1.5460 | 1.5420 |
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| Resistance | 1.5680 | 1.5720 | 1.5780 | 1.5820 | 1.5880 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Japanese Yen (JPY)
Morning Report
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The pair is still trapped within a very tight range, struggling around SMA 50 and SMA 100 as seen on the provided four-hour chart. We can see a minor uptrend line connecting three support points from 61.8% to 38.2% Fibonacci of the upside move from 75.50 to 79.50. In the interim, RSI 14 is gradually approaching oversold areas; thus, our bullish predictions remain intact over intraday basis. Breaching areas between 78.00 and 78.30 will bring aggressive buying interests. On the downside, clearing 76.40 will negate the positive scenario.
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 downside movement stopped before reaching the critical areas of 0.9235, which drives us to expect the pair to provide another bullish attempt, but the exponential moving averages 20 and 50 attempt to provide a negative crossover. Therefore, trading again above 0.9350 is necessary to confirm the return of the upside move, where in case the pair was unable to settle above this level, the negative bias could continue.
The trading range for today is among the major support at 0.9110 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 | 0.9290 | 0.9260 | 0.9235 | 0.9180 | 0.9110 |
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| Resistance | 0.9330 | 0.9350 | 0.9400 | 0.9440 | 0.9490 |
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| Recommendation | Based on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 0.9350, 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 is currently stable in areas below 1.0275 again, while it is also stable between the exponential moving average 20 and 50. The negative bias seen yesterday is still limited in areas above the ascending main support level, but also below the critical level mentioned above. Therefore, we remain neutral today, awaiting more confirmations, where consolidation above 1.0275 suggests the return of the upside move, while a breach of 1.0140 could trigger a deep correction.
The trading range for today is among the major support at 1.0140 and the major resistance at 1.0400.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0255 | 1.0205 | 1.0185 | 1.0140 | 1.0100 |
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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, we remain neutral awaiting more confirmations | ||||
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