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Technical Major Currencies
Written by article default Monday, 23 January 2012 08:45
Weekly Report 23/01 – 27/01/ 2012
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As shown above on the chart, the pair is currently stable within areas around the previous minor top around the support level at 1.2875 and also around the simple moving average 20. However, the pair is presently trading outside the scope of the downside movement that was breached last week. All these factors suggests that the pair could extend the upside move, targeting areas around 1.3035 at least and then areas around 1.3135, but we don’t expect reaching areas beyond 1.3195-1.3200 within the current bullish wave. Consolidation above 1.2795 is required for the suggested upside move to remain valid, while a breach of 1.2730 is sufficient to negate our expectations over intraday basis.
The trading range for this week is among the major support at 1.2685 and the major resistance at 1.3200.
The short-term trend is to the downside with steady daily closing below 1.3145 targeting 1.2220.
**New York Candlesticks**
| Support | 1.2875 | 1.2845 | 1.2795 | 1.2735 | 1.2685 |
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| Resistance | 1.2910 | 1.2955 | 1.3000 | 1.3035 | 1.3080 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying the pair above 1.2875, and taking profit in stages at (1.3035 and 1.3135) and stop loss with 4-hour closing below 1.2730 might be appropriate | ||||
Great British Pound (GBP)
Weekly Report 23/01 – 27/01/ 2012
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Over daily studies, the pair is facing a very critical situation that encourage us to stay aside since it has inclined during the past week but SMA 50 is presently retested while Stochastic is on its way to overlap. Over four-hour interval we can see more negative signs that added more sensitivity to the current levels as Stochastic and RSI 14 are reflecting a pure overbought case while traders are facing 76.4% Fibonacci retracement of the downside wave from 1.5665 to the significant low of 1.5230. In the interim, Parabolic SAR is carrying the movements from below; thus, the above discussed contradictions between signs over various time frames makes it rational to avoid trading until we see how the pair will behave around the current levels.
The trading range for this week is among key support at 1.5230 and key resistance at 1.5820.
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 | 1.5370 | 1.5335 | 1.5270 | 1.5230 |
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| Resistance | 1.5585 | 1.5680 | 1.5720 | 1.5780 | 1.5820 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable set up presents itself to pinpoint the upcoming big move. | ||||
Japanese Yen (JPY)
Weekly Report 23/01 – 27/01/ 2012
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The pair has found a very good support above 76.4% Fibonacci retracement of the entire upside rally from 75.50 to 79.50 as seen on the provided daily graph. The positivity appearing on Vortex and Stochastic indicators could assist the pair to move higher during this week. A break above 77.10 will accelerate the incline towards 77.70; whilst taking 78.00 will be a very positive indication for short term traders to retest 79.50 zones. On the downside, clearing 76.50 will give us a reason for pause and breaching 75.80 will trigger panic selling pressures.
The trading range for this week is among key support at 75.50 and key resistance now at 79.00.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.60 | 76.40 | 76.10 | 75.80 | 75.50 |
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| Resistance | 77.30 | 77.55 | 77.90 | 78.30 | 78.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.90 targeting 78.45 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Weekly Report 23/01 – 27/01/ 2012
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The upside move seen was limited in areas below the bottom of the suggested (B) point of the harmonic structure, which became effective after breaching the level of 0.9400. Stochastic is currently within overbought areas, while RSI failed to remain positive and breach the 50-point level. Therefore, we expect the downside movement to return, as the pair is still forming the CD leg of the suggested harmonic structure shown above. Consolidation below 0.9485 is essential for our expectations to remain valid.
The trading range for this week is among the major support at 0.9125 and the major resistance at 0.9660.
The short-term trend is to the upside with steady weekly closing above 0.8850 targeting 0.9950.
**New York Candlesticks**
| Support | 0.9365 | 0.9340 | 0.9305 | 0.9225 | 0.9195 |
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| Resistance | 0.9385 | 0.9405 | 0.9485 | 0.9525 | 0.9590 |
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| Recommendation | Based on the chart and explanations above, our opinion is selling the pair below 0.9385, and taking profit in stages at (0.9305 and 0.9225) and stop loss with a 4-hour closing above 0.9485 might be appropriate | ||||
Canadian Dollar (CAD)
Weekly Report 23/01 – 27/01/ 2012
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The pair failed to pass the level of 1.1085 and the pair remained in areas below the suggested (B) point of the bearish harmonic structure. In fact, consolidation below 1.0185 is necessary for the downside movement to continue, where trading above this level could trigger an upside move during this week. Stochastic is negative, while RSI failed to breach the 50-point level. Therefore, we will hold onto our negative expectations as they are.
The trading range for this week is among the major support at 0.9905 and the major resistance at 1.0375.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0100 | 1.0070 | 1.0055 | 1.0000 | 0.9970 |
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| Resistance | 1.0140 | 1.0185 | 1.0205 | 1.0255 | 1.0275 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling the pair around 1.0140, and take profit in stages at (1.0070 and 1.0010) and stop loss with 4-hour closing above 1.0205 might be appropriate | ||||
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