Morning Report
The pair settled below 78.6% Fibonacci correction of the upside move, which started from 1.3145 and ended at 1.4247. We expect the downside movement to extend further today towards 88.6% Fibonacci correction at 1.3270. Our negative outlook remains valid as long as the pair is stable below 1.3450, while stability below 1.3380 is much better to confirm our suggested scenario.
The trading range for today is among the major support at 1.3145 and the major resistance at 1.3565.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
| Support | 1.3350 | 1.3310 | 1.3270 | 1.3220 | 1.3160 |
| Resistance | 1.3380 | 1.3410 | 1.3490 | 1.3515 | 1.3565 |
| Recommendation | Based on the charts and explanations above, our opinion is selling the pair around 1.3380, and take profit in stages at (1.3310 and 1.3270) and stop loss above 1.3450 might be appropriate | ||||
Great British Pound (GBP)
Morning Report
The pair has reached our previous defined short term soft technical objective at 76.4% Fibonacci retracement of the entire downside rally from 1.6615 to the significant low of 1.5270. Now, we can see how the pair started to correct mildly since our target has meet the lower –support- line of the descending channel that dominates the bearish trend. In the interim, RSI 14 reflects oversold case, but we believe that the bearish journey will continue due to the negativity appearing on bigger time frames; noting that the intraday correction may extend towards 61.8% retracement before moving lower once more. Ultimately, break below 1.5480 will cancel out the technical idea of re-testing 61.8% retracement.
The trading range for today is among key support at 1.5270 and key resistance at 1.5820.
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 | 1.5510 | 1.5475 | 1.5415 | 1.5375 | 1.5270 |
| Resistance | 1.5580 | 1.5630 | 1.5680 | 1.5720 | 1.5780 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5590 targeting 1.5375 and stop loss above 1.5760 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The pair has achieved an aggressive attempt to breach through SMA 100 adopting a favorable reaction to yesterday's caught bullish crossover on Stochastic but it failed. Now, we can see Stochastic moving to the oversold areas again; whilst RSI 14 is valued at 50.00 suggesting that we may witness a new technical attempt to clear areas between 77.30-77.60 once more. Overall, our bullish anticipations remain intact over intraday basis so long as area between 76.10 and 75.80 remain intact.
The trading range for today is among key support at 75.80 and key resistance now at 79.55.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 76.95 | 76.60 | 76.40 | 76.10 | 75.80 |
| Resistance | 77.30 | 77.60 | 77.90 | 78.45 | 79.55 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.15 targeting 78.80 and stop loss below 75.80 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The pair inclined again, but it is still stable below the potential reversal zone of the bearish Butterfly harmonic pattern at 0.9235. The return of the downside movement is possible, especially when Stochastic is negative and supports our expectations.
The trading range for today is among the major support at 0.8940 and the major resistance at 0.9370.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9160 | 0.9120 | 0.9080 | 0.9050 | 0.9010 |
| Resistance | 0.9235 | 0.9290 | 0.9335 | 0.9370 | 0.9400 |
| Recommendation | Based on the chart and explanations above, our opinion is selling the pair below 0.9200, and take profit in stages at 0.9105 and 0.9050 and stop loss above 0.9290 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
As we expected, the bullish rebound continued yesterday, but now the pair settled for areas around 78.6% Fibonacci correction at 1.0490 as shown above. A breach of this level could lead the pair to test the previously mentioned areas around 1.0570, while in case the pair was unable to climb above 1.0490, it could go through a downside correction before the return of the upside move. Stochastic is excessively overbought, in the time the Relative Strength Index is positively biased. Therefore, we remain neutral today, due to the high risk associated to our expectations in addition to the technical conflict seen on momentum indicators.
The trading range for today is among the major support at 1.0275 and the major resistance at 1.0690.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
| Support | 1.0475 | 1.0400 | 1.0365 | 1.0305 | 1.0275 |
| Resistance | 1.0495 | 1.0510 | 1.0570 | 1.0620 | 1.0690 |
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
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