Morning Report
The pair failed to consolidate above 127.2% Fibonacci correction of the CD leg of the bullish Crab harmonic pattern, where the positive momentum settled for areas around the resistance at 1.3910 and was unable to reach 1.4010. Stability below 1.3825 suggests a possible downside movement, while a breach of 1.3680 supports the downside movement to extend further. Returning above 1.3825 revives our positive outlook.
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 | 1.3750 | 1.3710 | 1.3680 | 1.3665 | 1.3620 |
| Resistance | 1.3825 | 1.3840 | 1.3880 | 1.3910 | 1.3970 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair around 1.3775 and take profit in stages at (1.3710 and 1.3680) and stop loss above 1.3825, in case the pair reached our stop loss point, we recommend buying the pair around 1.3825, and take profit in stages at (1.3910 and 1.4010) and stop loss with 4-hour closing below 1.3775 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
Yesterday's daily closing was achieved comfortably and negatively below the pivotal support areas of 1.5780 which represents 38.2% Fibonacci level of the downside move from 1.6615 to the significant low of 1.5270 as seen on the provided daily graph. This negative closing beside the bearish momentum on Stochastic will not change our neutral stance since the pair has mildly inclined above the aforesaid level during the Asian session. To make sure that Friday's closing above this level was just a false breakout above the B point of the bigger harmonic structure discussed in the weekly report, we need to witness one more closing below it. On the upside, a breach of 1.5875 will bring more bullish recovery towards the psychological level of 1.6000.
The trading range for today is among key support at 1.5555 and key resistance at 1.6075.
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 | 1.5720 | 1.5690 | 1.5630 | 1.5580 | 1.5555 |
| Resistance | 1.5840 | 1.5875 | 1.5935 | 1.5985 | 1.6000 |
| 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
Although the pair has moved to the downside, but we can see how it closed bullishly above the combination of SMA 20 and SMA 50. One more technical attempt to stabilize above 77.20 will be enough to assist the pair to become liberated from the two month range between 75.90 and 77.70. On the downside, a break below 75.90-75.80 will indicate that the bears will dominate the market over 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 | 77.20 | 77.90 | 78.45 | 78.80 | 79.55 |
| 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
Stability below EMA 20 was accompanied with Stochastic relieving some of the positivity gained yesterday. Furthermore, the bearish Butterfly harmonic pattern is still affecting the pair’s movement. Therefore, we expect a downside movement today, which could be confirm with a breach of 0.8920, where this breach could support the pair to head towards the harmonic structure’s first target at 0.8695, which represents 38.2% Fibonacci correction of the CD leg of the pattern.
The trading range for today is among the major support at 0.8695 and the major resistance at 0.9235.
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 | 0.8750 | 0.8695 |
| Resistance | 0.8975 | 0.9030 | 0.9080 | 0.9105 | 0.9185 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair around 0.9030, and take profit at 0.8695 and stop loss with 4-hour closing above 0.9185 might be appropriate today | ||||
Canadian Dollar (CAD)
Morning Report
The pair formed a long bullish candlestick yesterday and was also able to breach the main resistance of the descending channel. The pair is stable above 1.0205, which negated our negative expectations yesterday. This move could end the effect of the bearish harmonic structure and support the pair to start a new upside journey, but heavy fluctuations and maybe downside corrections are possible to relieve Stochastic from trading in overbought areas, but any trading above 1.0020 supports our positive expectations to remain valid.
The trading range for today is among the major support at 1.0000 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 | 1.0140 | 1.0125 | 1.0085 | 1.0020 |
| Resistance | 1.0255 | 1.0305 | 1.0340 | 1.0375 | 1.0400 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0185, and take profit in stages at (1.0255 and 1.0375) and stop loss with below 1.0085 might be appropriate today. | ||||
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