Midday Report
The pair rebounded to the upside affected by the falling wedge pattern (bullish technical pattern), where this rebound started from areas around the support level at 1.3415. Our morning expectations remain as they are, supported by consolidation above these levels; however, we note that downside corrections are possible.
The trading range for today is among the major support at 1.3145 and the major resistance at 1.3665.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
**New York Candlesticks**
| Support | 1.3415 | 1.3380 | 1.3365 | 1.3300 | 1.3270 |
| Resistance | 1.3515 | 1.3565 | 1.3620 | 1.3665 | 1.3695 |
| Recommendation | Our morning expectations remain valid | ||||
Great British Pound (GBP)
Midday Report
As we promised this morning, we will talk about the monthly candlestick structure where we believe that a pattern that is very close to be a bearish stick sandwich has been formed with yesterday's closing as seen on the secondary image. This candlestick structure force us to be cautious when we talk about the upside possibility as SMA 50 over daily studies continues providing the graph with a very solid resistance around 38.2% Fibonacci of the downside rally from 1.6615 to 1.5270. Anyway, we may ignore the indications on bigger time frames if the pair succeeded in penetrating the initial resistance of the psychological level of 1.6000 once more. For intraday traders, areas of 1.5780 is the key level that may bring the bearish picture back into focus since momentum indicators over hourly and four-hour time scales reflect overbought case. Ultimately, we still believe that staying aside is a position due to our complicated technical case.
The trading range for today is among key support at 1.5420 and key resistance at 1.5935.
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 | 1.5680 | 1.5630 | 1.5590 | 1.5510 | 1.5460 |
| Resistance | 1.5780 | 1.5825 | 1.5880 | 1.5935 | 1.6000 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Japanese Yen (JPY)
Midday Report
The pair didn't show any big moves since morning but stability continued above 77.55 zones where 50% Fibonacci retracement of the upside wave from 75.50 to 79.50 as seen on the provided graph. The positive divergence appearing on Stochastic protected the stability above the aforementioned level; thus, we hold onto our bullish predictions for the rest of the day, but not before taking 77.80 zones.
The trading range for today is among key support at 76.10 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 | 77.360 | 77.15 | 76.95 | 76.60 | 76.40 |
| Resistance | 77.80 | 78.10 | 78.45 | 79.15 | 79.55 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair above 77.80 targeting 79.55 and stop loss below 76.65 might be appropriate. | ||||
Swiss Franc (CHF)
Midday Report
The pair continues to decline affected by the bearish Butterfly harmonic pattern. Consolidation below 38.2% Fibonacci correction, which represents the first target of the Butterfly pattern, suggests that the downside movement could extend towards the second target, which represents 61.8% Fibonacci correction of the CD leg at 0.8980, passing by the minor support level at 0.9045.
The trading range for today is among the major support at 0.8980 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 | 0.9110 | 0.9080 | 0.9045 | 0.9010 | 0.8980 |
| Resistance | 0.9160 | 0.9180 | 0.9235 | 0.9290 | 0.9335 |
| Recommendation | Based on the chart and explanations above, our opinion is selling the pair around 0.9180, and take profit in stages at (0.9110, 0.9045 and 0.8980) and stop loss above 0.9290 might be appropriate | ||||
Canadian Dollar (CAD)
Midday Report
The pair settled around 38.2% Fibonacci correction at 1.0185 without providing clear signs regarding the pair’s next move, but the current upside bias could return, in case the pair to returned above 1.0185 supported by the positivity on Stochastic. But, until now the pair didn’t settle above this level, while the RSI is stable below the 50-point level. Therefore, we remain neutral for the rest of the session today.
The trading range for today is among the major support at 1.0000 and the major resistance at 1.0365.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
| Support | 1.0140 | 1.0100 | 1.0080 | 1.0025 | 0.9970 |
| Resistance | 1.0205 | 1.0275 | 1.0305 | 1.0365 | 1.0400 |
| Recommendation | Based on the charts and explanations above, we remain neutral awaiting more confirmations | ||||
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