Morning Report
The pair reached below 1.3680, but then rebounded sharply to the upside to currently approaching areas of 127.2% Fibonacci correction of the CD leg of the Bat harmonic pattern. Any 4-hour closing above 1.3825 is sufficient to push the pair into another bullish wave, which could lift the pair towards 161.8% Fibonacci correction of the CD leg of the harmonic structure, but without stability above 1.3825 this bullish attempt could fail. Therefore, we expect an upside move today, awaiting a 4-hour closing above 1.3825 to confirm 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 | 1.3780 | 1.3720 | 1.3680 | 1.3620 | 1.3565 |
| Resistance | 1.3825 | 1.3840 | 1.3880 | 1.3910 | 1.3970 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair with 4-hour closing above 1.3825, and take profit at 1.4010 and stop loss with 4-hour closing below 1.3720 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
Moving to the four-hour chart, we will notice the sharp fluctuation that occurred yesterday after touching our second detected technical support of 1.5630. Now, we can see the possibility of forming a potential head and shoulders top pattern for the correctional upside rally from 1.5270 zones, where we believe that the initial resistance level of 1.5780 before attempting to hit the neckline areas. Vortex is negative despite yesterday's recovery. A break of 1.5690-1.5660 zones will trigger a panic sell-off.
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 | 1.5690 | 1.5630 | 1.5580 | 1.5555 | 1.5445 |
| 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
Yesterday's daily closing was achieved between SMA 20 and SMA 50 as seen on the provided daily chart. Nothing changed except drawing a negative sign on Stochastic which can be fixed once the pair penetrates the key resistance levels of 77.20 and preferably above 77.70 to make sure that the pair succeeded in beating the continuous two month sideways range. On the other hand, breaching through 75.80 will trigger an aggressive downside wave.
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 pair is affected by the bearish Butterfly harmonic pattern and is currently stable below the EMA 20 at 0.9020. We expect the pair to provide more attempts to consolidate below 23.6% Fibonacci correction at 0.8930 and extend the downside movement towards 38.2% Fibonacci correction of the CD leg of the bearish Butterfly pattern around 0.9695, supported by trading below 0.9185 and the bearishness will be more confirmed with trading below 0.9105.
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 | 0.8780 | 0.8750 |
| Resistance | 0.9020 | 0.9080 | 0.9105 | 0.9185 | 0.9230 |
| Recommendation | Based on the chart and explanations above, we recommend selling the pair below 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 fulfilled our positive expectations yesterday, yet settled for areas around 1.0255 and then reversed to the downside to currently trade below the bottom of point (C) of the bearish AB=CD harmonic pattern. Nevertheless, the breach of the descending channel’s main resistance prevents us from defining the next trend, where we can see technical conflict today. Therefore, we remain neutral in the session.
The trading range for today is among the major support at 0.9910 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 | 1.0085 | 1.0020 | 1.0000 | 0.9970 | 0.9910 |
| Resistance | 1.0140 | 1.0205 | 1.0255 | 1.0305 | 1.0340 |
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
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