Morning Report
Yesterday, the pair reached below 1.3820, which negated our previous intraday expectations. However, the pair rebounded to the upside quickly and consolidated above this level, which indicates that this breakout could be a false one. The pair is very close to 1.4010, which represents the last extended target of the bullish Crab harmonic pattern (on the right) and the first potential reversal zone of the bearish Butterfly harmonic pattern (on the left). Therefore, we expect the pair to extend the upside movement today, yet we remain neutral due to the proximity to the suggested reversal zone. Consolidation above 1.4075 negates the bearish reversal temporary.
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 | 1.3970 | 1.3940 | 1.3910 | 1.3880 | 1.3840 |
| Resistance | 1.4010 | 1.4075 | 1.4120 | 1.4150 | 1.4205 |
| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
With a long lower shadow that tested SMA 50, yesterday's candlestick was formed as seen on the provided daily chart. The pair inclined after this test to stabilize above the psychological level of 1.6000 once more suggesting that the bullish effect of the bullish harmonic AB=CD pattern is still in progress. Fibonacci retracement of 61.8% could be touched soon; whilst 76.4% might be reached later if Cable neglected the overbought sign appearing on RSI 14. To recap, the overall trajectory appears bullish for the time being and a break of 1.6075 will accelerate inclines.
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 | Based on the charts and explanations above our opinion is, buying the pair around 1.5990 targeting 1.6280 and stop loss below 1.5820 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The pair has achieved one more daily closing inside our detected sideways range as seen on the graph; whilst the contradiction between oversold sign of Stochastic and the bearish sign of Vortex continues. Thereby, we are forced to watch the price behavior for the fourth consecutive day; noting that a break of yesterday's low at 75.70 will bring 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 | 75.80 | 75.60 | 75.25 | 74.90 | 74.50 |
| Resistance | 76.60 | 76.40 | 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)
Morning Report
The pair is still biased to the downside, where the bullish attempt yesterday failed due to the effect of the bearish Butterfly harmonic pattern, which forces downside pressures on the pair to move towards the first target of the pattern, which represents 38.2% Fibonacci correction of the CD leg. We expect the downside movement to extend today towards the mentioned correction at 0.8695, while Stochastic provides a negative crossover, which also supports our negative expectations. Therefore, due to the proximity to the suggested target, and the high risks associated with our expectations, we prefer to remain neutral today.
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 charts and explanations above we remain neutral awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
As shown above on the chart, we can see how the upside move failed to continue, especially after the bearish candlestick yesterday covered the entire bullish one seen the day before. Furthermore, the Relative Strength Index is still negative, which confirms the breach of the ascending main support (shown in red). We expect the downside movement to continue, where the general structure turned bearish over intraday basis.
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 | 0.9970 | 0.9950 | 0.9905 | 0.9865 | 0.9825 |
| Resistance | 1.0055 | 1.0110 | 1.0185 | 1.0205 | 1.0255 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.0030, and take profit in stages at (0.9905 and 0.9880) and stop loss above 1.0110 might be appropriate today. | ||||
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