Morning Report
The psychological level around 1.3500 sent the pair to the downside and the daily chart offers the following technical factors that argue us to suggest more bearish actions over intraday basis:
- A huge negative divergence on Stochastic.
- A negative crossover on the OsMA and Stochastic.
- A bearish candlestick construction.
SMA 100 might be retested once the pair stabilizes below the pivotal support zones of 1.3415. On the upside, the key resistance around 1.3550 should protect bears.
The trading range for today is among key support at 1.3230 and key resistance at 1.3615.
The general trend over short term basis is to the downside targeting 1.1865 as far as areas of 1.3550 remain intact.
| Support | 1.3415 | 1.3370 | 1.3320 | 1.3290 | 1.3230 |
| Resistance | 1.3480 | 1.3500 | 1.3500 | 1.3550 | 1.3615 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.3415 targeting 1.3230 and stop loss above 1.3550 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
In line with yesterday's suggested scenario, we can see how SMA 200 has forced the pair to move lower forming a negative candlestick formation as seen on the provided daily graph. A close back below 1.5785 will confirm resuming the bearishness but on the other hand, the key resistance level around 1.5925 should act as a ceiling for any downside attempts. Meanwhile, we need to witness a negative crossover on Stochastic to confirm our constructive negative outlook.
The trading range for today is among key support at 1.5585 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 remain intact.
| Support | 1.5785 | 1.5730 | 1.5680 | 1.5630 | 1.5585 |
| Resistance | 1.5880 | 1.5925 | 1.5975 | 1.6000 | 1.6025 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.5785 targeting 1.5555 and stop loss above 1.5935 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
On Feb. 15, we have been able to catch a potential inverted head and shoulders bottom pattern over weekly basis -check the classical overview- and the pair has been capable of reaching its scientific technical objective with the opening of this week. But, yesterday's violent decline from the initial resistance around 80.50 has activated obvious negative signs on Stochastic and RSI 14 as seen on the provided daily graph. We expect more downside correction in order to re-test the key support levels around 79.55-79.50 due to the negativity of the candlesticks structures. Of note, some kind of fluctuation could be witnessed since momentum indicators over smaller time frames show oversold signals, but the bigger timescales may beat them. Our risk limit is a daily closing above 81.65.
The trading range for today is among key support at 78.60 and key resistance now at 81.65.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 80.20 | 80.00 | 79.80 | 79.55 | 79.15 |
| Resistance | 80.75 | 81.00 | 81.25 | 81.65 | 82.05 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 80.75 targeting 79.55 and stop loss above 81.65 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
The pair has started to achieve a mild upside recovery; whilst Stochastic is on its way to prove the clear oversold case as seen on our provided daily chart. As we discussed earlier, Keltner channel can interpret overbought and oversold case when the price move beyond its upper and lower lines. But, we will not suggest further upside recovery due to the sensitivity of the current levels as the pair is hovering around 61.8% Fibonacci of the entire upside move from 0.8565 to 0.9590. To recap, it is better to stay aside over intraday basis as risk versus reward ratio is too high.
The trading range for today is among key support at 0.8800 and key resistance at 0.9175.
The general trend over short term basis is to the upside targeting 0.9950 as far as areas of 0.8850 remain intact.
| Support | 0.8930 | 0.8900 | 0.8870 | 0.8850 | 0.8800 |
| Resistance | 0.8985 | 0.9000 | 0.9030 | 0.9080 | 0.9105 |
| 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. | ||||
Canadian Dollar (CAD)
Morning Report
The pair was rejected once more from 1.0050 main resistance, currently attempting to the downside for a possible retest of the bottom of the range bound that has been controlling trading for the past couple of weeks. We continue to anticipate bullish rebounds, only steady trading below 0.9890 shall force us to reconsider our bullish scenario over the short term. We remind you that our bullish bias is mainly based on the falling wedge formation in addition to the bullish divergence seen on momentum indicators.
The trading range for the day is expected among the key support at 0.9890 and the key resistance at 1.0070.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
| Support | 0.9930 | 0.9890 | 0.9870 | 0.9850 | 0.9800 |
| Resistance | 0.9970 | 1.0020 | 1.0050 | 1.0080 | 1.0150 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9900 targeting 1.0000 and 1.0150, stop loss daily closing below 0.9880. | ||||
To ensure you receive such e-mails in the future, please add ecPulse.com to your list of approved senders.
No comments:
Post a Comment