Morning Report
Our midday expectations yesterday succeeded based on the bullish Butterfly harmonic pattern, yet over four-hour basis, we find the pair attempts to confirm the breach of the descending channel’s resistance; however consolidation above the Moving Average 50 at 1.3600 is necessary to confirm this breach. Stability above 1.3515 supports the upside movement to extend further, therefore, we hold onto our positive expectations as long as the pair is stable above the mentioned level. Stochastic is negative, while stability above the Moving Average 50 is required to relieve the indicator from negativity, meanwhile MACD indicator attempts to turn positive.
The trading range for today is among the major support at 1.3220 and the major resistance at 1.3840
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3515 | 1.3490 | 1.3435 | 1.3395 | 1.3320 |
| Resistance | 1.3600 | 1.3665 | 1.3690 | 1.3710 | 1.3740 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair with 4-hour closing above 1.3600, and take profit in stages at (1.3690 and 1.3740) and stop loss with 4-hour closing below 1.3515. | ||||
Great British Pound (GBP)
Morning Report
The shooting star candlestick pattern appearing on the four-hour graph indicates that the upside recovery from 1.5330 zones started to lose its steam. Indeed, we still classify this channel on the secondary image as a corrective channel since the bigger time frames reflect a clear classical bearish case. Henceforth, we hold onto our bearish predications over intraday basis; noting that a breakout below 1.5555 will weaken the pivotal support of 1.5495 and will trigger a panic sell-off. Conversely, the neckline areas of the huge double top pattern of the weekly basis should hold to protect our scenario.
The trading range for today is among key support at 1.5330 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 | 1.5555 | 1.5495 | 1.5445 | 1.5390 | 1.5330 |
| Resistance | 1.5690 | 1.5720 | 1.5780 | 1.5820 | 1.5880 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5555 targeting 1.5260 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
Once more, the initial resistance by 76.95 zones succeeded in limiting the bullishness yesterday although the pair succeeded in hitting SMA 20 as well. Now, the contrarian between being carried above SMA 20 and the negative sign on Stochastic forces us to continue watching the market until it clears the aforesaid resistance areas. Once it maintains levels above 76.95 the suggested Elliott count will be activated; whilst breaching through 75.80 zones will damage this cycle. Consequently, we keep our neutrality unchanged over intraday basis.
The trading range for today is among key support at 75.25 and key resistance now at 77.90.
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 | 75.60 | 75.45 | 75.25 |
| Resistance | 76.60 | 76.75 | 76.95 | 77.20 | 77.60 |
| 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. | ||||
Swiss Franc (CHF)
Morning Report
The bearish Butterfly harmonic pattern has proved its strength, where consolidation below 0.9185 suggests that the pair could continue the downside correction in attempts to retest the level of 0.8835, while a breach of this level could support the pair to rest 0.8620, which represents 23.6% Fibonacci correction of the CD leg, and also represents the structure’s first target at 38.2%. Our negative expectations remain valid, noting that consolidation below 0.9185 is necessary to confirm the bearishness.
The trading range for today is among the major support at 0.8620 and the major resistance at 0.9230.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8920 | 0.8850 | 0.8835 | 0.8780 | 0.8750 |
| Resistance | 0.9080 | 0.9105 | 0.9150 | 0.9185 | 0.9230 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.9000, and take profit in stages at (0.8835 and 0.8620) and stop loss above 0.9185 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
The pair is providing contradictory signs, after reaching around 1.0125 yesterday, where it returned to consolidate above the Exponential Moving Averages 20 and 50. But, Stochastic is within oversold areas, which could trigger another attempt to stabilize below the mentioned level. In case the pair was able to return below 1.0230, we could witness a downside correction today towards 1.0125.
The trading range for today is among the major support at 1.0010 and the major resistance at 1.0400
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0230 | 1.0185 | 1.0125 | 1.0085 | 1.0010 |
| Resistance | 1.0290 | 1.0320 | 1.0350 | 1.0375 | 1.0400 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair with 4-hour closing above 1.0225, and take profit in stages at (1.0125, 1.0085) and stop loss with 4-hour closing above 1.0320 might be appropriate | ||||
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