Morning Report
We recognize a possible formation of a bearish Butterfly harmonic pattern (shown above to the right), where the pattern’s first Potential Reversal Zone -PRZ- resides at 1.4000, which also represents the last extended target of the bullish Crab harmonic pattern mentioned in our previous reports (shown on the left image). We expect the upside move to extend, proving the validity of the suggested Butterfly pattern and achieving the last extended target of the bullish Crab pattern; however, we recommend paying attention once the pair reaches areas around 1.4000, where these levels could trigger a downside correction.
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 | 1.3880 | 1.3840 | 1.3825 | 1.3780 | 1.3720 |
| 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)
Morning Report
In line with yesterday's scenario, the pair succeeded in clearing the psychological levels of 1.6000 as seen on the provided daily graph. The consecutive daily closing above 50% Fibonacci retracement of CD leg for the bullish harmonic AB=CD pattern is seen as a technical preparation for touching the second technical objective of the harmonic structure at 61.8% retracement level. Fibonacci of 61.8% may represent a technical obstacle that will slow down the recovery which started at 1.5270 zones since RSI 14 is nearing overbought areas. But, Fibonacci of 76.4% will be under our technical microscope as it represents the targeted level of Cable's corrections. Conversely, coming beneath 1.5820-1.5780 zones will bring the major bearish picture 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 | 1.6000 | 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
Despite recording an all-time low at 75.72 yesterday, but the daily closing was seen above the lower edge of the sideways range detected earlier as seen on the provided daily chart. We are obliged to stay aside over intraday basis due to the following technical reasons:
- Yesterday's candlestick pattern -Doji- reflects an indecision case.
- Stochastic is gradually approaching overbought areas and that was the rational reason which prevented the pair from collapse.
On the other hand, breaching through 76.95 will ease the path towards 77.70-77.80 areas. Ultimately, the technical situation is too sensitive for USD/JPY pair and we advice you to be patient until we catch a confirmed trend together.
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 | 76.95 | 77.20 | 77.60 | 77.90 |
| 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 trading within the descending channel, which started from the top around the resistance at 0.9310, where this channel supports the downside movement of the bearish Butterfly harmonic pattern to continue. The pair is currently approaching the pattern’s first target at 0.8695, where we expect a test of this level as long as the pair is stable below 0.8930, while consolidation below 0.8835 strengthens this possibility.
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 | 0.8750 | 0.8710 | 0.8695 | 0.8640 | 0.8505 |
| Resistance | 0.8800 | 0.8835 | 0.8850 | 0.8930 | 0.8970 |
| 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)
Morning Report
The pair rebounded to the upside and breached the downside movement’s main resistance, where this incline was supported by the recently formed bullish Butterfly harmonic pattern, which was completed around 0.9980. We expect the upside move to extend, yet fluctuations are possible before the suggested rebound, while the pair could retest areas around 1.0110 and maybe 1.0055.
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 | 1.0375 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 1.0110, and take profit in stages at (1.0205 and 1.0305) and stop loss below 1.0000 might be appropriate today. | ||||
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