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Technical Major Currencies
Written by article default Tuesday, 31 January 2012 07:04
Morning Report
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The pair has been able to touch the SMA 50 which provided it with some kind of support during the Asian session. Thereby, the pair retraced mildly upwards but it is still trading comfortably below the key resistance levels between 1.3230 and 1.3250. At the same time, Stochastic continues showing overbought signs suggesting that the pair is currently gathering the momentum it needs to breach through SMA 50. To recap, our bearish scenario remains intact so long as SMA 100 at 1.3375 holds as a risk limit.
The trading range for today is among key support at 1.2970 and key resistance at 1.3375.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 areas remain intact.
| Support | 1.3140 | 1.3110 | 1.3080 | 1.3045 | 1.3000 |
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| Resistance | 1.3200 | 1.3230 | 1.3250 | 1.3295 | 1.3315 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3200 targeting 1.2970 and stop loss above 1.3375 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Cable succeeded in forming a long lower shadow on the daily chart yesterday but trading remains within the same trading range for the third consecutive day. We need to witness a sustained breakout below the intraday support at 1.5615 to reinforce our weekly bearish outlook while 1.5785 represents the major resistance for the time being and a break of which with a daily closing will change the outlook. The shaky overbought sign appearing on Stochastic and nearing 1.5785 in addition to stability above SMA 50 are reasons that force us to avoid trading today until the pair gives clearer signs to pinpoint the upcoming big move.
The trading range for today is among key support at 1.5515 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 | 1.5680 | 1.5630 | 1.5585 | 1.5555 | 1.5515 |
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| Resistance | 1.5780 | 1.5825 | 1.5880 | 1.5935 | 1.5975 |
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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)
Morning Report
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The pair has closed negatively below 76.4% Fibonacci retracement of the entire upside rally from 75.50 to 79.50 zones as seen on the provided daily chart. Stochastic is gradually approaching oversold areas contradicting with the negativity appearing on Vortex indicator which shows a clear negative sign. In the interim, RSI 14 also is on the way to draw a potential positive divergence while the pivotal support of 76.00 becomes very close. The above mentioned conflicting technical catalysts force us to stay aside over intraday basis.
The trading range for today is among key support at 75.20 and key resistance now at 77.30.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.10 | 75.80 | 75.50 | 75.25 | 75.00 |
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| Resistance | 76.60 | 76.95 | 77.30 | 77.60 | 77.90 |
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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. | ||||
Swiss Franc (CHF)
Morning Report
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The pair has closed positively above SMA 100 yesterday as seen on the provided daily chart. Meanwhile, RVI 14 is on the way to crossover positively within oversold zones. Therefore, our bullish predications discussed in the weekly report remain unchanged supported the wide support areas between 0.9105 and 0.9030. Only a break of 0.9030 will give us a rational reason to concern.
The trading range for today is among key support at 0.8965 and key resistance at 0.9310.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 areas remain intact.
| Support | 0.9120 | 0.9080 | 0.9045 | 0.9025 | 0.8985 |
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| Resistance | 0.9175 | 0.9210 | 0.9260 | 0.9285 | 0.9310 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9125 targeting 0.9310 and stop loss below 0.9030 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair managed to hold below the breached support among 1.0050-1.0075 to reverse direction attempting to test the lows again. The pair is trading near the lows around the psychological 1.0000 level, at the same a bearish technical pattern could be materializing as shown on chart, therefore we anticipate bearishness today, but we may see another bullish attempt to test the resistance of this technical pattern before resuming the intraday downside action.
The trading range for today is expected among the major support at 0.9950 and the major resistance at 1.0075.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900
| Support | 1.000 | 0.9980 | 0.9950 | 0.9925 | 0.9900 |
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| Resistance | 1.0025 | 1.0050 | 1.0075 | 1.0100 | 1.0120 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.0055 targeting 1.0000 and 0.9950, stop loss above 1.0080. | ||||
Australian Dollar (AUD)
Morning Report
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The pair rebounded after touching 1.525 yesterday to acquire our initial target at 1.0600, and currently pushing to the upside attempting to breach 1.0630 level which is a descending resistance for descending broadening wedge formation shown on the image above. A breach above this resistance may extend the rally to test the high at 1.0685 again. At the current levels risk-reward ratio is not appropriate thus we will stay aside awaiting another potential setup.
The trading range for today is expected among the major support at 1.0500 and the major resistance at 1.0700
The short-term trend is to the upside targeting 1.1079 so long as 1.0130 remains intact.
| Support | 1.0580 | 1.550 | 1.0525 | 1.0480 | 1.0450 |
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| Resistance | 1.0630 | 1.0670 | 1.0700 | 1.0730 | 1.0750 |
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| Recommendation | Based on the charts and explanations above, we recommend staying aside as risk-reward ratio is not appropriate. | ||||
New Zealand Dollar (NZ)
Morning Report
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Kiwi resumed the bullishness yesterday after correcting some of the latest gains. Currently the pair is attempting to test the major resistance at 0.8250 again, while RSI is showing a possible bearish divergence, accordingly, we hold onto our bearish expectations for the pair, targeting the bottom of the ascending channel -shown on chart- once more.
The trading range for today is expected among the major support at 0.8120 and the major resistance at 0.8250
The short-term trend is to the upside, targeting 0.8840 as long 0.7600 remain intact.
| Support | 0.8220 | 0.8200 | 0.8175 | 0.8150 | 0.8115 |
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| Resistance | 0.8250 | 0.8280 | 0.8300 | 0.8320 | 0.8340 |
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| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 0.8250 targeting 0.8190 and 0.8100, stop loss above 0.8290. | ||||
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