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Technical Major Currencies
Written by article default Wednesday, 01 February 2012 07:14
Morning Report
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Adopting a favorable action to yesterday's technical comment, the pair has plummeted sharply attacking SMA 50. Moving to the four-hour graph, we can see how it has drawn a reversal classical pattern breaching its neckline areas while MACD traditional and RSI are giving off negative signs. Thereby, the bearishness may continue over intraday basis and targets are well seen on the provided graph. Only a break of 1.3230 will give us a rational reason for pause.
The trading range for today is among key support at 1.2735 and key resistance at 1.3315.
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 | 1.3045 | 1.3000 | 1.2970 | 1.2930 | 1.2870 |
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| Resistance | 1.3110 | 1.3140 | 1.3200 | 1.3230 | 1.3250 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3090 targeting 1.2895 and stop loss above 1.3235 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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Let us use the following technical catalysts to suggest possible bearish actions over intraday basis:
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The huge negative divergence appearing on RSI 14.
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The suggested Elliott cycle started at 1.6165 as we classify the bullishness from 1.5230 as resumption for the corrective structure and the third wave may start sooner.
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The negative candlestick structure seen obviously on the secondary image.
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The daily closing below 1.5785.
Ultimately, a break of 1.5680 will accelerate and confirm the negative scenario; whilst a daily closing above 1.5785 will give us a reason for concern.
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 | 1.5730 | 1.5680 | 1.5630 | 1.5585 | 1.5555 |
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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, selling the pair below 1.5680 targeting 1.5460 and stop loss above 1.5785 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
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Stochastic is nearing the oversold areas while RSI 14 continues providing a potential positive divergence. On the other side, Vortex is still giving off negative image for the movements of the USD/JPY pair. Thus, the neutrality remains favored over intraday basis; noting that clearing 76.50 will be a very positive indication and taking 76.00 will threaten all-time low around 75.50 zones.
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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In line with our weekly predictions and yesterday's outlook, the pair has moved aggressively upwards activating the awaited bullish crossover on RVI 14 indicator and Stochastic as seen on the main daily chart. Moreover, we have witnessed a comfortable closing above SMA 100 for the second consecutive day; thus, the bullishness may continue over intraday basis supported by the bullish classical structure appearing on the four-hour timescale. Meanwhile, a break above 0.9230 will bring additional buying interests and will accelerate the bullish wave.
The trading range for today is among key support at 0.9030 and key resistance at 0.9435.
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 | 0.9175 | 0.9145 | 0.9120 | 0.9030 | 0.9000 |
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| Resistance | 0.9260 | 0.9285 | 0.9310 | 0.9360 | 0.9435 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9185 targeting 0.9400 and stop loss below 0.9030 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
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The pair failed to hold below parity yesterday, where it found support near the 200-days SMA to rebound again attempting to retest the resistance area among 1.0050-1.0075, a bullish divergence is seen on Stochastic. Therefore, we will wait and see if the pair maintains the bullish bias and able to breach the aforementioned resistance area in addition to the resistance of the short term descending channel shown on chart.
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 | 1.0000 | 0.9965 | 0.9925 | 0.9900 | 0.9870 |
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| Resistance | 1.0050 | 10075 | 1.0100 | 1.0140 | 1.0175 |
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| Recommendation | Based on the charts and explanations above, we recommend staying aside awaiting further confirmations | ||||
Australian Dollar (AUD)
Morning Report
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Aussie's rally was halted near 1.0700 level, to reverse again currently attempting to test the short term ascending support shown on image, while stochastic is showing a bearish divergence , we may see further downside pressure today to test the support of the main ascending channel. A breach below the dashed ascending trend-line shall confirm and accelerate bearishness.
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 | 1.0550 | 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 selling the pair at 1.0640 targeting 1.0580 and 1.0520. Stop loss above 1.0700. | ||||
New Zealand Dollar (NZ)
Morning Report
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The pair goes back to trade below 0.8250 level, and pushing to the downside attempting to test the ascending support for a possible rising wedge pattern, this pattern is bearish per se, thus we will look to for an opportunity to the downside today, and a breach below 1.8215 shall confirm it, however we will anticipate developments before the midday report.
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 staying aside awaiting confirmation. | ||||