Members login
Technical Major Currencies
Written by article default Thursday, 22 December 2011 07:15
Morning Report
|
|
The decline seen yesterday confirmed the continuous effect of the descending channel. Today, the pair is stable in areas below the exponential moving average 20. A breach of 1.3000 and stability below it could confirm the extension of the downside movement, where consolidation below this level is required as Stochastic is within oversold areas and a breach of this support should negate the positivity seen on momentum indicators.
The trading range for today is among the major support at 1.2790 and the major resistance at 1.3220.
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 | 1.2875 | 1.2845 |
|
|
|||||
| Resistance | 1.3080 | 1.3120 | 1.3160 | 1.3220 | 1.3270 |
|
|
|||||
| 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 (1.2875 and 1.2790) and stop loss with 4-hour closing above 1.120 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
 |
In line with our previous technical comment, Cable has declined achieving a daily closing below SMA 50 and below 38.2% Fibonacci retracement of the entire declines from 1.6615 to the former low of 1.5270 as seen on the provided graph. At the same time, Stochastic continues approaching overbought areas and on its way to overlap negatively; thus, the bearishness came back into focus. All what we need is to witness a sustained breakout below 1.5555 to make sure that the upside recovery was limited below 38.2% as well.
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 |
|
|
|||||
| Resistance | 1.5680 | 1.5720 | 1.5780 | 1.5820 | 1.5880 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5680 targeting 1.5420 and stop loss above 1.5795 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
 |
The daily candlesticks appearing on the secondary image suggests a potential bullish stick sandwich pattern where the pair has closed positively above moving averages combination. In the interim, the main four-hour chart shows how the pair succeeded in achieving consecutive closings above moving SMA 50 and SMA 100. Thereby, we keep our bullish predictions intact today; whilst a break above 78.30 will accelerate inclines, chiefly targeting 79.15, followed by 79.55. The invalidation level of this scenario resides at 76.70-76.40 zones.
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 | 77.80 | 77.60 | 77.30 | 77.15 | 76.95 |
|
|
|||||
| Resistance | 78.30 | 78.45 | 78.80 | 79.15 | 79.55 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.85 targeting 79.55 and stop loss below 76.70 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
|
|
The pair attempts to settle above the main support of the upside move, but until now it didn’t confirmed stability above this level. Stochastic is currently negative within overbought areas. Consolidation above 0.9330 could support the pair to turn positive, but we remain neutral in our morning report, awaiting more confirmations.
The trading range for today is among the major support at 0.9180 and the major resistance at 0.9590.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
**New York Candlesticks**
| Support | 0.9330 | 0.9290 | 0.9260 | 0.9235 | 0.9180 |
|
|
|||||
| Resistance | 0.9400 | 0.9440 | 0.9495 | 0.9520 | 0.9590 |
|
|
|||||
| Recommendation | Based on the charts and explanations above we remain neutral, awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
|
|
The pair is stable between the exponential moving averages 20 and 50, and also below 1.0275, but on the other hand the pair is now above the main ascending support level at 1.0185. Stochastic and the relative strength index are negative, but a breach of the mentioned support level is required for this negativity, but stability above 1.0275 could negate the downside movement and force positive effects on the pair. Therefore, we remain neutral now, awaiting more confirmations.
The trading range for today is among the major support at 1.0070 and the major resistance at 1.0490.
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 | 1.0070 |
|
|
|||||
| Resistance | 1.0275 | 1.0305 | 1.0375 | 1.0400 | 1.0475 |
|
|
|||||
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
|
||||||||||||