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Technical Major Currencies
Written by article default Tuesday, 27 December 2011 08:55
Weekly Report 27/12 – 30/ 12/ 2011
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The pair is fluctuating narrowly since last week, and we expect trading volumes to continue at lower levels this week as well, however, we advise being carful as we might see sudden sharp moves. In general, the pair continues to consolidate above 1.3000 level, while Stochastic is neutral, the range-trading stance is expected to continue this week, where upside attempts should be limited to 1.3200 swing high. To the downside; a breach below 1.3000 may lead to another test of 1.2945 low.
The trading range for this week is among the major support at 1.2790 and the major resistance at 1.3400.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3040 | 1.3015 | 1.2980 | 1.2950 | 1.2910 |
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| Resistance | 1.3075 | 1.3100 | 1.3120 | 1.3160 | 1.3200 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3200 targeting 1.3120 and 1.3020, stop loss four-hour closing above 1.3235 might be appropriate. | ||||
Great British Pound (GBP)
Weekly Report 27/12 – 30/ 12/ 2011
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In accordance with our previous technical comment, the pair has declined violently after testing SMA 50 as seen on the provided daily graph. Now, we need to witness a sustained breakout below 23.6% Fibonacci of the downside wave from 1.6615 to 1.5270 to confirm the bearishness suggested for this week. Stochastic overlapped negatively reinforcing our constructive outlook. The soft technical target is seen around 1.5420, while a break of which will trigger a panic sell-off.
The trading range for this week is among key support at 1.5270 and key resistance at 1.5935.
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 | 1.5555 | 1.5460 | 1.5420 | 1.5375 | 1.5270 |
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| Resistance | 1.5680 | 1.5720 | 1.5780 | 1.5880 | 1.5935 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5650 targeting 1.5420 and stop loss above 1.5800 might be appropriate. | ||||
Japanese Yen (JPY)
Weekly Report 27/12 – 30/ 12/ 2011
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The pair is still trapped between the resistance line which forced RSI 14 to move downwards as we anticipated in our previous report. The support line which carries the movements from 76.50 zones meets SMA 100 as seen on the provided four-hour chart. We believe that the current healthy correction might be ended sooner once RSI enters the oversold areas. Anyway, our bullish predictions are still intact; whilst a break of 78.30 will confirm them. Conversely, areas of 76.60 should hold to protect the scenario.
The trading range for this week is among key support at 76.10 and key resistance now at 79.55.
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 | 78.55 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.80 targeting 79.55 and stop loss below 76.60 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 27/12 – 30/ 12/ 2011
The pair is stable above the critical support levels between 0.9310 and 0.9330 while the MA 50 continues to offer support for the pair from below. Therefore, we hold onto our expectations for the pair to resume the upside move this week as the positive formation over daily basis supports the bullishness towards previously suggested targets from 0.9490 to 0.9660. The positive expectations require first the clear breach of 0.9400 and also steady daily closing above 0.9310.
The trading range for this week is among the major support at 0.9180 and the major resistance at 0.9775.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9330 | 0.9290 | 0.9260 | 0.9235 | 0.9180 |
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| Resistance | 0.9400 | 0.9440 | 0.9490 | 0.9590 | 0.9660 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 0.9330 targeting 0.9490, 0.9590 and 0.9660 and stop loss below 0.9235 might be appropriate this week | ||||
Canadian Dollar (CAD)
Weekly Report 27/12 – 30/ 12/ 2011
The pair found strong support around 1.0185 where it is pushing the pair to the upside and preventing further downside movement, while Stochastic is pointing to the upside over four-hour basis and accordingly we hold onto our bullish expectations for this week targeting areas from 1.0360 then 1.0450, while breaching 1.0185 will force us to reassess the suggested upside move.
The trading range for this week is among the major support at 1.0070 and the major resistance at 1.0520.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.0185 | 1.0140 | 1.0100 | 1.0070 | 1.0055 |
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| Resistance | 1.0205 | 1.0255 | 1.0305 | 1.0360 | 1.0450 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair around 1.0185 targeting 1.0275 and 1.0365 and stop loss with four-hour closing below 1.0070 might be appropriate | ||||
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