Midday Report
The pair declined sharply to currently trade around 50% Fibonacci correction at 1.3695. These critical support levels should be closely watched, where a breach of these levels could support the downside movement to extend towards 61.8% Fibonacci correction at 1.3565, while a failure to breach these levels could trigger a retest of areas around 1.3825-85. Therefore, we will remain neutral for the rest of the session today.
The trading range for today is among the major support at 1.3565 and the major resistance at 1.4080.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
| Support | 1.3665 | 1.3620 | 1.3565 | 1.3515 | 1.3490 |
| Resistance | 1.3720 | 1.3770 | 1.3825 | 1.3880 | 1.3910 |
| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Midday Report
Respecting our suggested bearish outlook, the pair declined sharply attacking our detected technical support around 1.5935 as seen on the provided chart. The secondary image of the four-hour scale shows that a classical bearish pattern was formed successfully indicating that the effect of the bigger harmonic picture might have been limited at 61.8% of CD leg as we explained earlier. We keep our negative scenario intact for the rest of the day; whilst a break of 1.5935 with a four-hour closing will send the pair easily below the previous defined technical objective of 1.5780.
The trading range for today is among key support at 1.5720 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 | 1.5880 | 1.5820 | 1.5780 | 1.5720 | 1.5630 |
| Resistance | 1.6000 | 1.6075 | 1.6125 | 1.6150 | 1.6225 |
| Recommendation | Our morning expectations remain valid. | ||||
Japanese Yen (JPY)
Midday Report
Tranquility dominated the movements of the pair since morning, while it continued consolidating above the classical support -previous resistance- of 77.70 as seen on the provided daily chart. Regardless of the BOJ intervention, yesterday's upside candlestick pattern still assists momentum and trend indicators to remain positive. Thereby, we hold onto our morning perditions for the rest of the day as far as areas between 76.80-76.40 remain intact.
The trading range for today is among key support at 76.10 and key resistance now at 82.25.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 77.90 | 77.20 | 76.95 | 76.60 | 76.10 |
| Resistance | 78.80 | 79.55 | 79.90 | 80.05 | 81.15 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.90 targeting 80.05 and stop loss below 76.80 might be appropriate. | ||||
Swiss Franc (CHF)
Midday Report
The pair inclined sharply to currently reaches the main resistance of the descending channel. Currently Stochastic is within overbought areas, but the Relative Strength Index is sill positive. Therefore, our morning expectations remain as they are.
The trading range for today is among the major support at 0.8505 and the major resistance at 0.9030.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.8850 | 0.8780 | 0.8740 | 0.8695 | 0.8625 |
| Resistance | 0.8930 | 0.8970 | 0.9030 | 0.9080 | 0.9105 |
| Recommendation | Our morning expectations remain valid | ||||
Canadian Dollar (CAD)
Midday Report
The pair failed to provide a breach of 0.9950, and then rebounded to the upside to currently trade around the upside move previously breached main support. Areas around 1.0185 could be able to stop the pair’s positive momentum and also support the return of the downside movement, but stability above 1.0255 could negate the bearishness. Therefore, we await the pair to provide stability below 1.0030 to confirm the return of the negativity.
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 | 1.0085 | 1.0030 | 0.9970 | 0.9950 | 0.9905 |
| Resistance | 1.0185 | 1.0205 | 1.0255 | 1.0275 | 1.0340 |
| Recommendation | Based on the charts and explanations above, we recommend selling the pair with a breach of 1.0030, and take profit in stages at (0.9885 and 0.9825) and stop loss above 1.0185 might be appropriate. | ||||
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