Morning Report
The sharp incline seen yesterday supported the pair to test 78.6% Fibonacci correction of the bearish wave as shown above, where the bullish rebound negated the bearish butterfly harmonic pattern mentioned yesterday, which drove us to remain neutral in the past session. Currently, the pair is trading around the main resistance of the ascending channel, while momentum indicators are within overbought areas, which could trigger a downside correction before resuming the general upside trend, which is expected to extend further.
The trading range for today is among the major support at 1.3850 and the major resistance at 1.4390.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.4120 | 1.4075 | 1.4010 | 1.3970 | 1.3910 |
| Resistance | 1.4180 | 1.4205 | 1.4250 | 1.4300 | 1.4365 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.4140, and take profit in stages at (1.4250 and 1.4390) and stop loss below 1.4000 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
Comparing between today's chart and the graph published in the weekly report will prove that we have moved with Cable from 50% Fibonacci level to the second technical target of the bullish harmonic AB=CD pattern at 61.8% retracement which was touched yesterday. Studying the historical movements of Sterling claim that the pair frequently tests 76.4% Fibonacci level in its corrections and that means 1.6295 might be reached. But, we prefer staying aside over intraday basis due to the following technical factors:
- The exhaustion started to appear on RSI 14 indicator.
- The solidity of the aforesaid 61.8% retracement.
- Risk versus rewards ratio becomes too high.
Of note, breaching through 61.8% will accelerate the inclines towards our major technical target at 1.6295 if the pair neglected the above mentioned technical factors.
The trading range for today is among key support at 1.5820 and key resistance at 1.6450.
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 | 1.6025 | 1.6000 | 1.5935 | 1.5880 | 1.5820 |
| Resistance | 1.6150 | 1.6200 | 1.6295 | 1.6340 | 1.6380 |
| 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. | ||||
Japanese Yen (JPY)
Morning Report
The secondary image is over weekly basis and it is interpreting the indecision case since the beginning of the week until now. Having a look at yesterday's closing, we will find that the pair has closed again around the lower edge of our caught sideways range. At the same time, the contrarian between momentum and trend indicators continues on the graph. Thereby, we are forced to hold onto our neutral stance; noting that a break of yesterday's low at 75.70 will trigger an aggressive bearish wave. Conversely, a breakout above 76.40 may send the pair higher towards 77.20 zones, followed by 77.70.
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 | 75.60 | 75.25 | 74.90 | 74.50 | 73.85 |
| Resistance | 76.10 | 76.40 | 76.60 | 76.95 | 77.20 |
| 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)
Morning Report
The pair breached the first target of the CD leg of the bearish Butterfly harmonic pattern, where according to harmonic rules, a breach of this level at 0.8695 suggests that the downside movement could extend towards the second target, which represents 61.8% Fibonacci correction at 0.8310. But, 50% Fibonacci correction at 0.8505 represents a technical barrier facing the pair. Momentum indicators are within oversold areas, which could trigger heavy fluctuations and maybe upside corrections, but we expect the downside movement to extend today.
The trading range for today is among the major support at 0.8310 and the major resistance at 0.8930.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8580 | 0.8550 | 0.8505 | 0.8480 | 0.8435 |
| Resistance | 0.8675 | 0.8695 | 0.8780 | 0.8850 | 0.8930 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.8675, and take profit at 0.8505 and stop loss above 0.8780 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
The pair declined yesterday affected by the breach of the ascending channel shown in Green, and currently, the pair founded base above 61.8% Fibonacci correction as shown above at 0.9880, and then rebounded to confirm a strong support level. We expected an upside movement today, while a breach of 0.9850 negates our expectation.
The trading range for today is among the major support at 0.9825 and the major resistance at 1.0255.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 0.9905 | 0.9865 | 0.9850 | 0.9825 | 0.9780 |
| Resistance | 0.9970 | 1.0000 | 1.0055 | 1.0110 | 1.0185 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9905, and take profit in stages at (0.9970 and 1.0055) and stop loss below 0.9850 might be appropriate today. | ||||
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