Morning Report
The decline seen yesterday could affect our weekly expectations released yesterday, where we recognize a bearish technical structure on the chart, while consolidation below the exponential moving average 50 could activate the bearish structure that could trigger a downside movement today. At the same time, the falling wedge pattern –Bullish structure- is still valid. Therefore, due to the technical conflict seen we prefer to remain neutral today, awaiting more confirmations regarding the pair’s next movement.
The trading range for today is among the major support at 1.3080 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 | 1.3365 | 1.3300 | 1.3270 | 1.3220 | 1.3160 |
| Resistance | 1.3380 | 1.3415 | 1.3490 | 1.3515 | 1.3565 |
| Recommendation | Based on the chart and explanations above we remain neutral awaiting more confirmations | ||||
Great British Pound (GBP)
Morning Report
Yesterday's recorded high has created a new long upper shadow that should be added to the previous four candles. Consequently, we looks at the aforesaid high as a new re-test of SMA 20 which forced the pair to move sharply downwards once more. The key support of 1.5590 will be under attack sooner due to the negativity of Stochastic; thus, the bearishness is still favored over intraday basis. A break of 1.5420 will designates more aggressive selling interests towards 1.5270 over upcoming sessions.
The trading range for today is among key support at 1.5375 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 | 1.5590 | 1.5555 | 1.5510 | 1.5460 | 1.5420 |
| Resistance | 1.5660 | 1.5680 | 1.5720 | 1.5780 | 1.5820 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5645 targeting 1.5420 and stop loss above 1.5780 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The USD/JPY pair went mildly downwards relieving Stochastic as we discussed yesterday. This slight downside move has taken it towards SMA 50, while Stochastic approached the oversold zones and it is seemingly preparing to overlap positively. Hence, our bullish outlook remains intact over intraday basis; noting that a break of 78.10-78.30 areas will accelerate the move. Conversely, areas around 76.65-76.55 should protect our constructive bullish outlook.
The trading range for today is among key support at 76.55 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 | 77.30 | 77.15 | 76.95 | 76.55 | 76.10 |
| Resistance | 78.10 | 78.45 | 79.15 | 79.55 | 80.00 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 77.60 targeting 79.55 and stop loss below 76.65 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
Until now, the bearish Butterfly harmonic pattern is still valid, but we recognize another bullish technical structure on the chart, which could negate the extension of the CD leg. The level of 0.9235 is the first technical barrier facing the pair today, where this level represents the neckline of the bullish structure. Therefore, we remain neutral today, as consolidation above 0.9235 could trigger an upside move, while stability below this level and breaching the level of 0.9180 could support the effect of the bearish Butterfly pattern to return.
The trading range for today is among the major support at 0.8980 and the major resistance at 0.9400.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
| Support | 0.9180 | 0.9110 | 0.9080 | 0.9045 | 0.9015 |
| Resistance | 0.9235 | 0.9260 | 0.9290 | 0.9335 | 0.9370 |
| Recommendation | Based on the charts and explanations above we remain neutral, awaiting more confirmations | ||||
Canadian Dollar (CAD)
Morning Report
The pair rebounded to the upside yesterday to settle above 38.2% Fibonacci correction at 1.0185. This fact supports the possibility of an upside move during the session today, supported by the positivity seen on Stochastic. Consolidation above 1.0275 should confirm our bullish outlook, while a breach of 1.0070 should negate our suggested scenario.
The trading range for today is among the major support at 0.9970 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 | 1.0070 | 1.0025 | 1.0000 |
| Resistance | 1.0205 | 1.0275 | 1.0305 | 1.0365 | 1.0400 |
| Recommendation | Based on the charts and explanations above, our opinion is buying the pair around 1.0140, and take profit in stages at (1.0255 and 1.0305) and stop loss with 4-hour closing below 1.0070 might be appropriate | ||||
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