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Technical Major Currencies
Written by article default Monday, 30 January 2012 07:21
Midday Report
The pair returned to move higher again and we can see the positive crossover on Stochastic, nevertheless, RSI is still negative. Therefore, the coming move for the pair depends on areas of 1.3195 where a breach of which will drive the pair towards 1.3295 and the failure to move above it will take the pair again to attempt to breach 1.3035 which if breached will trigger a bearish correction. We prefer maintaining the neutral stance for today due to the inadequacy for the risk-reward ratio and the need to assess the reaction at the mentioned levels.
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 | 1.3135 | 1.3080 | 1.3035 | 1.3000 | 1.2955 |
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| Resistance | 1.3160 | 1.3195 | 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)
Midday Report
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From the pivotal support of 1.5665 -the full correctional level for the entire downside seen on the chart- Cable inclined towards the initial resistance for intraday traders at 1.5720 forming a positive candlestick patter. This pattern has been able to create a positive sign on Stochastic, but RSI 14 remains negative contradicting with the positive catalysts on the four-hour graph. Thereby, we will be neutral for the rest of this week's closing; noting that a break above 1.5720 with a four-hour closing will bring more buying interests. On the downside, taking 1.5615 will bring the negative picture back into focus.
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 | 1.5680 | 1.5630 | 1.5585 | 1.5515 | 1.5460 |
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| Resistance | 1.5780 | 1.5825 | 1.5880 | 1.5935 | 1.5960 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Japanese Yen (JPY)
Midday Report
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The pair started to trade below SMA 20 -greeen- while the negative signs on technical indicators continued on the daily graph. The bearish tendency may continue for the rest of the day softly targeting 76.50-76.30 and a break below these levels will be a very negative indication for short term traders. On the upside, 77.90 is the key for opening the door for buyers to enter the market.
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 | 76.60 | 76.40 | 76.10 | 75.80 | 75.50 |
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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)
Midday Report
From areas around 0.9225 the pair returned to decline once again and that confirms that the pair continues to form the CD leg of the suggested harmonic formation shown on the chart above. Stochastic is negative and supports us to hold onto our morning expectations; where we see the chances for the pair to test areas of 0.9125. Nevertheless, where reaching those areas we should observe the pair closely as a breach of this level will negate the harmonic formation and extend the bearishness and its stability will trigger the upside reversal affected by the mentioned formation.
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 | 0.9110 | 0.9080 | 0.9045 | 0.9010 |
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| Resistance | 0.9225 | 0.9260 | 0.9290 | 0.9305 | 0.9365 |
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| Recommendation | Our morning expectations remain valid | ||||
Canadian Dollar (CAD)
Midday Report
The pair is moving to the downside yet the decline did not affect the general harmonic formation. The bullish Butterfly Pattern remains valid and stability above 0.9960 keeps the possibility for the pair to return to the upside intact. We hold onto our morning expectations yet due to the negative signals on Stochastic we need the pair to return above 1.0010 to cancel the negativity.
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 | 0.9960 | 0.9905 | 0.9880 | 0.9865 | 0.9825 |
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| Resistance | 1.0010 | 1.0070 | 1.0110 | 1.0140 | 1.0185 |
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| Recommendation | Our morning expectations remain valid | ||||
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