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Technical Major Currencies
Written by article default Friday, 23 December 2011 07:18
Midday Report
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The pair attempts to incline, but these attempts were limited below the resistance of 1.3120, which suggests that negativity is still valid in general. But, 4-hour closing below 1.3000 is required to prevent Stochastic from pushing the pair to the upside and to confirm the return of the downside movement.
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 |
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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 (1.2875 and 1.2790) and stop loss with 4-hour closing above 1.3120 might be appropriate | ||||
Great British Pound (GBP)
Midday Report
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Cable has moved once more to the downside after re-testing SMA 50 again; whilst the four-hour chart shows how RSI 14 is moving lower from overbought zones. Henceforth, the bearishness is still favored for the rest of the day, supported by the daily Stochastic which approaches overbought areas. A break below 1.5630 followed by 1.5555 will accelerate decline.
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 | 1.5720 | 1.5780 | 1.5820 | 1.5880 | 1.5935 |
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| Recommendation | Our morning expectations remain valid. | ||||
Japanese Yen (JPY)
Midday Report
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The pair continued its steady consolidation above the key support around 77.80 as seen on the subsidiary daily chart. The four-hour interval suggests a mild and short lived correction before resuming the bullishness as we discussed earlier. A break above 78.30 will accelerate inclines supported by the bullish stick sandwich pattern over daily studies. On the downside, areas of 76.70-76.40 should act as a floor.
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 |
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| Resistance | 78.30 | 78.45 | 78.80 | 79.15 | 79.55 |
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| 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)
Midday Report
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The pair attempts to settle above the ascending main support again, but the negativity seen on Stochastic is our problem. Therefore, consolidation above 0.9400 is necessary to confirm the upside move, but without this closing, our scenario will not be confirmed.
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 | 0.9350 | 0.9330 | 0.9290 | 0.9260 | 0.9235 |
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| Resistance | 0.9400 | 0.9440 | 0.9490 | 0.9520 | 0.9590 |
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| Recommendation | Based on the chart and explanations above, our opinion is buying the pair above 0.9330, and take profit in stages at (0.9490, 0.9590 and 0.9660) and stop loss with 4-hour closing below 0.9260 might be appropriate | ||||
Canadian Dollar (CAD)
Midday Report
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We recognize an ascending continuation triangle formation as shown above on the chart. Consolidation above 1.0070 suggests the return of the upside move, while stability above 1.0185 should support our bullish outlook significantly. In result, we expect the pair to rebound to the upside soon.
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 |
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| Resistance | 1.0275 | 1.0305 | 1.0375 | 1.0400 | 1.0475 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0205, and take profit in stages at (1.0365 and 1.0490) and stop loss with 4-hour closing below 1.0140 might be appropriate | ||||
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