Midday Report
The pair is trading within narrow levels, yet biased to the upside, affected by the bullish Crab harmonic pattern (on the left), which supports the pair to test the last extended target of 161.8% Fibonacci extension at 1.4010 and to form the CD leg of the Butterfly harmonic pattern (on the right). Therefore, our positive expectations remain valid, noting that we should pay attention once the pair reaches around 1.4010 and 1.4075, where these levels represent a critical barrier and could signal the pair’s next movement.
The trading range for today is among the major support at 1.3720 and the major resistance at 1.4150.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3910 | 1.3880 | 1.3840 | 1.3825 | 1.3780 |
| Resistance | 1.3970 | 1.4010 | 1.4080 | 1.4120 | 1.4150 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.3880, and take profit at 1.4010 and stop loss below 1.3820 might be appropriate. | ||||
Great British Pound (GBP)
Midday Report
Calm and stable movements are seen around the psychological level of 1.6000 which is above 50% Fibonacci f CD leg for the bullish harmonic AB=CD pattern as seen on the provided chart. The door is open for touching the second technical objective of the harmonic structure at 61.8% retracement level. We recommend reviewing the morning report to recognize the role that 76.4% retracement plays when we are talking about Cable. Anyway, we keep our morning expectations intact for the rest of the day. Of note, a break of 1.5820 -1.5780 will bring the major bearish trend back into focus.
The trading range for today is among key support at 1.5780 and key resistance at 1.6295.
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 | 1.5960 | 1.5935 | 1.5880 | 1.5820 | 1.5780 |
| Resistance | 1.6075 | 1.6100 | 1.6150 | 1.6200 | 1.6295 |
| Recommendation | Our morning expectations remain valid. | ||||
Japanese Yen (JPY)
Midday Report
Without closing decisively below 75.80-75.72 over daily basis, we will continue watching out the price actions of the USD/JPY pair. Yesterday's Doji candlestick pattern is another rational technical reason behind our neutral stance as we know that this pattern reflects a case of indecision. In the interim, Stochastic is nearing oversold areas but moving averages are covering the pair and this is seen as another contradiction between momentum and trend indications, solidifying the neutral overview.
The trading range for today is among key support at 74.50 and key resistance now at 77.60.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 75.80 | 75.60 | 75.25 | 74.90 | 74.50 |
| Resistance | 76.40 | 76.60 | 76.95 | 77.20 | 77.60 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move. | ||||
Swiss Franc (CHF)
Midday Report
The pair approaches from 38.2% Fibonacci correction of the CD leg of the bearish Butterfly harmonic pattern –mentioned in our previous reports-. We expect the downside movement to continue; however, we should observe the pair’s behavior around 0.8695, where momentum indicators are within oversold areas and without a breach of this level an upside correction could be possible.
The trading range for today is among the major support at 0.8505 and the major resistance at 0.9080.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8695 | 0.8675 | 0.8640 | 0.8580 | 0.8505 |
| Resistance | 0.8780 | 0.8850 | 0.8930 | 0.9030 | 0.9080 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8800, and take profit at 0.8695 and stop loss above 0.8880 might be appropriate today | ||||
Canadian Dollar (CAD)
Midday Report
The pair rebounded to the upside after reaching around the support at 1.0110, to breach the resistance level, which turned into support now. Currently, we expect the upside movement to continue, affected by the bullish breach of descending channel in addition to the bullish Butterfly harmonic pattern as shown above.
The trading range for today is among the major support at 0.9825 and the major resistance at 1.0305.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0110 | 1.0085 | 1.0055 | 1.0000 | 0.9970 |
| Resistance | 1.0185 | 1.0205 | 1.0255 | 1.0275 | 1.0305 |
| Recommendation | Our morning expectations remain valid | ||||
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