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Technical Major Currencies
Written by article default Friday, 27 January 2012 08:27
Morning Report
Areas of 1.3195 held against the upside attempts yesterday and now the pair returned to the downside once again to trade below 1.3135 areas shown above. The negative reversal on RSI is still valid, while Stochastic is trading within oversold areas attempting a positive crossover. Breaching areas of 1.3035 will trigger a bearish correctional wave while the breach of 1.3195 will confirm the upside move. Therefore, we remain neutral for now awaiting the confirmation signals to define the upcoming move more accurately in the coming report.
The trading range for today is among the major support at 1.2840 and the major resistance at 1.3295.
The short-term trend is to the downside with steady daily closing below 1.3145 targeting 1.2220.
*The chart above is based on NY time*
| Support | 1.3080 | 1.3035 | 1.3000 | 1.2955 | 1.2900 |
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| Resistance | 1.3135 | 1.3160 | 1.3220 | 1.3270 | 1.3295 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
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Yesterday's bullish attempts topped with an obvious spinning top candlestick pattern around 113% Fibonacci projection for the entire downside wave from 1.5665 to 1.5230 as seen on the provided four-hour graph. This aforesaid candlestick has sent the pair downwards activating a breakout below the momentum support of Stochastic while RSI 14 continued presenting overbought signals. Therefore, we hold onto our bearish predictions over intraday basis; noting that a breakout below 1.5615 is required to confirm the scenario.
The trading range for today is among key support at 1.5460 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 | 1.5585 | 1.5515 | 1.5460 | 1.5420 |
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| Resistance | 1.5720 | 1.5780 | 1.5825 | 1.5880 | 1.5935 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5615 targeting 1.5420 and stop loss above 1.5730 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Adopting a favorable reaction to yesterday's caught negative signs, greenback plummeted violently versus the Japanese yen reaching our suggested technical target at 76.95 as seen on the provided daily chart -check the previous report-. Now, the projected bearish wave may continue over intraday basis due to the consecutive negative signals on technical indicators. Moreover, the candlestick structure represents another technical catalyst that could send the pair towards 76.50-76.30 zones. Only breaching 77.90-78.00 will negate our suggested bearish scenario.
The trading range for today is among key support at 76.10 and key resistance now at 78.30.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.95 | 76.60 | 76.40 | 76.10 | 75.80 |
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| Resistance | 77.30 | 77.60 | 77.90 | 78.30 | 78.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 77.30 targeting 76.50 and stop loss above 77.90 might be appropriate. | ||||
Swiss Franc (CHF)
Stability below 0.9225 areas supports the possibility for the pair to extend the downside wave aiming at areas around 0.9125 where the harmonic Crab Pattern will be completed. Stochastic is currently in overbought areas and accordingly we expect the pair to move to the downside towards 0.9170 areas then to the projected pivotal reversal point of the suggested harmonic pattern.
The trading range for today is among the major support at 0.9010 and the major resistance at 0.9365.
The short-term trend is to the upside with steady weekly closing above 0.8850 targeting 0.9950.
*The chart above is based on NY time*
| Support | 0.9170 | 0.9120 | 1.9080 | 1.6045 | 0.9010 |
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| Resistance | 0.9225 | 0.9260 | 0.9290 | 0.9305 | 0.9365 |
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| Recommendation | Based on the charts and explanations above our opinion is selling the pair below 0.9220 targeting 0.9170 and 0.9125 and stop loss with four-hour closing above 0.9260 might be appropriate | ||||
Canadian Dollar (CAD)
Morning Report
Despite the fact that the CD leg of the butterfly pattern is not ideal, still the harmonic formation generally fulfils the required Fibonacci corrections and that is why we believe that the formation is valid and it is a bullish formation suggesting further upside movement for the pair. This formation might carry the pair to test areas around 1.0100 and stability above this level will push the pair to test areas around 1.0170-1.0185; our bullish intraday expectations require steady trading above 0.9960 areas.
The trading range for today is among the major support at 0.9865 and the major resistance at 1.0205.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
*The chart above is based on NY time*
| Support | 1.0010 | 0.9960 | 0.9905 | 0.9885 | 0.9865 |
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| Resistance | 1.0070 | 1.0110 | 1.0140 | 1.0185 | 1.0205 |
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| Recommendation | Based on the charts and explanations above we recommend buying the pair above 1.0010 targeting 1.0100 and 1.0180 and stop loss with four-hour closing below 0.9940 might be appropriate | ||||
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