Morning Report
Over 4-hour basis, the pair was unable to provide any 4-hour closing above 1.3825, which triggered another bearish wave. We can recognize a possible bearish pattern which contradicts the bullish Crab harmonic pattern; however, a breach of 1.3650 confirms this bearish structure. Currently, the pair is trading above the top of point (C) of the mentioned harmonic structure. But at the same time, the Relative Rtrength Index is negative, while Stochastic attempts to enter oversold areas. Therefore, we remain neutral in the session today.
The trading range for today is among the major support at 1.3565 and the major resistance at 1.4010.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3700 | 1.3680 | 1.3665 | 1.3620 | 1.3565 |
| Resistance | 1.3780 | 1.3825 | 1.3840 | 1.3880 | 1.3910 |
| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
Moving to the daily studies, where we can see how the pair's upside attempt was resisted as well yesterday around the pivotal resistance areas of 1.5850. It went downwards sharply during the Asian session where it is currently approaching our yesterday's defined key support of 1.5690 while Stochastic is showing off an obvious bearish sign that may help it to penetrate the aforesaid support. Hence, we hold onto our bearish anticipations, supported by two technical catalysts:
- The coverage from SMA 50.
- Stability below 38.2% Fibonacci level of the entire downside wave from 1.6615 to 1.5270.
The trading range for today is among key support at 1.5490 and key resistance at 1.6000.
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 | 1.5690 | 1.5630 | 1.5580 | 1.5555 | 1.5490 |
| Resistance | 1.5780 | 1.5820 | 1.5880 | 1.5935 | 1.6000 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5690 targeting 1.5440 and stop loss above 1.5850 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The pair is presently hovering around SMA 20 -colored in green- inside the previous detected two month sideways range as seen on the provided daily graph. That is why we need to witness a breakout above 77.20 and preferably above 77.70 to make sure that the pair succeeded in beating the continuous conflicting signs on the chart. A break below 75.80 zones will damge any bullish possibility during the upcoming sessions.
The trading range for today is among key support at 75.25 and key resistance now at 78.45.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.60 | 76.40 | 76.10 | 75.80 | 75.60 |
| Resistance | 76.95 | 77.20 | 77.90 | 78.45 | 78.80 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.20 targeting 79.55 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The level of 23.6% Fibonacci correction was able to stop the pair’s negative momentum, while the pair returned to trade above the Exponential Moving Average 20. At the same time, the Butterfly harmonic pattern is still valid, while Stability below 0.9185 supports the continuous effect of the pattern. Stochastic is within overbought areas, while the Relative Strength Index is trading positively above the 50 points level. Therefore, , we remain neutral today due to the technical conflict seen.
The trading range for today is among the major support at 0.8695 and the major resistance at 0.9270.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9030 | 0.8980 | 0.8920 | 0.8850 | 0.8835 |
| Resistance | 0.9080 | 0.9105 | 0.9185 | 0.9230 | 0.9270 |
| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
Consolidation above the Exponential Moving Averages 20 and 50 along with the breach of the minor descending channel as shown above could support the pair to form a double bottom pattern. This pattern was not confirmed yet, where a breach of 1.0275 confirms this structure, while stability above 1.0205 supports the possibility of forming this structure, which could trigger an upside move. A breach of 1.0040 negates our intraday positive expectations, while a breach of 1.0120 only weakens the positivity.
The trading range for today is among the major support at 0.9970 and the major resistance at 1.0450
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0205 | 1.0185 | 1.0120 | 1.0085 | 1.0040 |
| Resistance | 1.0255 | 1.0305 | 1.0350 | 1.0375 | 1.0420 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0205, and take profit in stages at (1.0350 and 1.0420) and stop loss with 4-hour closing below 1.0120 might be appropriate today. | ||||
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