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Technical Major Currencies
Written by article default Thursday, 02 February 2012 08:57
Morning Report
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The key resistance level of 1.3230 succeeded in preventing the pair from achieving more bullishness as seen on the provided daily chart. Yesterday's caught bearish classical pattern -check the previous reports- remains valid so long as the pair remains below the high of the right shoulder at 1.3215. Those technical factors are rational reasons to suggest a bearish scenario over intraday basis. A break back below 1.3080 will accelerate the move while 1.3375 should protect the bearish direction. Finally, technical indicators' signals reinforce the scenario until now.
The trading range for today is among key support at 1.2870 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 | 1.3170 | 1.3200 | 1.3230 | 1.3250 | 1.3295 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3200 targeting 1.2975 and stop loss above 1.3375 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
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The huge negative divergence over four-hour interval remains valid while the suggested Elliott count is another technical catalyst that prevents us from suggesting more bullishness. Actually, Cable frequently reaches 76.4% Fibonacci when it draws its correctional waves. Thus, we are not sure if the current corrective actions that form the bigger second wave are over or it will insist on touching 76.4% retracement of the entire IM -impulsive- wave from 1.6165 to the trough of the first wave. Consequently, we will avoid trading today; noting that a break below 1.5785 will be the first indication that the third wave is in progress.
The trading range for today is among key support at 1.5585 and key resistance at 1.6025.
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 | 1.5820 | 1.5785 | 1.5730 | 1.5680 | 1.5630 |
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| Resistance | 1.5880 | 1.5935 | 1.5975 | 1.6000 | 1.6025 |
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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 achieved a daily closing above 88.6% Fibonacci retracement of the entire upside wave from 75.50 to 79.50 zones as seen on the provided daily graph. The positive divergence on RSI 14 and the bullish crossover on Stochastic suggest a bullish recovery over intraday basis. A break above 76.50 is required to fix the negative sign on Vortex indicator. Conversely, the all-time low at 75.50 should hold to confirm the positive scenario.
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 | 76.00 | 75.80 | 75.50 | 75.25 | 75.00 |
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| Resistance | 76.40 | 76.60 | 76.95 | 77.30 | 77.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 76.00 targeting 77.30 and stop loss below 75.45 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
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Yesterday's positive closing above the lower line of Keltner channel confirmed the solidity of the support areas around 0.9105. In the interim, Stochastic and RVI 14 continued showing bullish signs. Thereby, the bullish scenario discussed in our weekly report remains intact over intraday basis. Carefully note that clearing the key support of 0.9030 will give us a reason for concern but taking 0.9210-0.9225 zones will clear the path for additional bullishness.
The trading range for today is among key support at 0.8985 and key resistance at 0.9360.
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 | 0.9145 | 0.9120 | 0.9030 | 0.9000 | 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 pivotal support around 0.9965 is still providing the pair with a good support as seen on the provided four-hour chart. The struggle around the middle line of the descending channel that dominated the movements from 1.0285 zones continues fixing RSI 14. But, the sign on AROON -trend indicator- isn't clear reinforcing the technical prospect of staying aside over intraday basis. Ultimately, a break of 1.0000 will give a reason for a bullish recovery and taking 0.9900 will be a negative indication for the pair's buyers.
The trading range for today is expected among the major support at 0.9830 and the major resistance at 1.0175.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
| Support | 0.9965 | 0.9925 | 0.9900 | 0.9870 | 0.9830 |
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| Resistance | 1.0000 | 1.0050 | 1.0075 | 1.0100 | 1.0140 |
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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. | ||||
Australian Dollar (AUD)
Morning Report
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The Aussie has inclined breaching through the psychological level of 1.0700 as seen on the provided four-hour chart. We can notice a potential negative divergence on OsMA indicator; whilst Stochastic is negative. But, on the other side, the pair is very close to the initial resistance level of 1.0755 where the resistance of the ascending channel exists and a break of which will negate the aforesaid divergence. Therefore, avoid trading is the proper technical choice for today.
The trading range for today is expected among the major support at 1.0530 and the major resistance at 1.0945.
The short-term trend is to the upside targeting 1.1079 so long as 1.0130 remains intact.
| Support | 1.0700 | 1.0655 | 1.0630 | 1.0580 | 1.0550 |
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| Resistance | 1.0730 | 1.0755 | 1.0800 | 1.0835 | 1.0890 |
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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. | ||||
New Zealand Dollar (NZ)
Morning Report
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The pair has moved upwards touching the resistance areas of the ascending channel where the upper line of Bollinger bands exists as seen on the provided four-hour chart. The negative signs on technical indicators cue a trend reversal; thus, the bearishness is favored over intraday basis; noting that a break below 0.8300 zones will confirm and accelerate the move. Conversely, breaching through 0.8450 will negate the intraday scenario completely.
The trading range for today is expected among the major support at 0.8120 and the major resistance at 0.8500.
The short-term trend is to the upside, targeting 0.8840 as long 0.7600 remain intact.
| Support | 0.8300 | 0.8250 | 0.8220 | 0.8200 | 0.8175 |
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| Resistance | 0.8340 | 0.8365 | 0.8380 | 0.8400 | 0.8450 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 0.8360 targeting 0.8175 and stop loss above 0.8450 might be appropriate. | ||||