Morning Report
Yesterday's massive decline proved the efficiency of the negative divergences on Stochastic and OsMA that was caught during the previous sessions as seen on the provided daily graph. Over four-hour time scale, we can see the double top pattern that supports resuming the bearishness over intraday basis. A break below SMA 100 will accelerate the downside actions; whilst above 1.3490 will threat the bearish outlook. Technical objectives reside at 1.3200 followed by 1.3110 areas.
The trading range for today is among key support at 1.3110 and key resistance at 1.3625.
The general trend over short term basis is to the downside targeting 1.1865 as far as areas of 1.3550 remain intact.
| Support | 1.3320 | 1.3290 | 1.3230 | 1.3200 | 1.3140 |
| Resistance | 1.3380 | 1.3415 | 1.3455 | 1.3500 | 1.3550 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 1.3375 targeting 1.3110 and stop loss above 1.3550 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
The long upper shadow of yesterday's candlestick has taken the pair towards the territory 200-Day SMA once again as seen on the provided daily chart. Meanwhile, Stochastic continued reflecting some kind of technical hesitation despite approaching overbought areas. We are definitely forced to stay aside again over intraday basis due to the sensitivity of current levels. A break below 1.5890 with a four-hour closing may activate a negative sign on momentum indicator. But, clearing the psychological level of 1.6000 will confirm a breakout above SMA 200.
The trading range for today is among key support at 1.5730 and key resistance at 1.6165.
The general trend over short term basis is to the downside targeting 1.4225 as far as areas of 1.6875 remain intact.
| Support | 1.5900 | 1.5880 | 1.5820 | 1.5780 | 1.5730 |
| Resistance | 1.5975 | 1.6000 | 1.6025 | 1.6075 | 1.6165 |
| 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)
Morning Report
Yesterday's upside recovery was limited below the key resistance areas between 81.50 and 81.65 where the pair started to move mildly lower once more. Despite the fluctuation seen between 81.65 and the psychological levels of 80.00 but RSI 14 remains reflecting an overbought case as it is valued at 73.00. Accordingly, we suggest a potential downside move today but penetrating 80.75 is required to actuate bears to dominate the intraday direction.
The trading range for today is among key support at 78.60 and key resistance now at 82.05.
The general trend over short term basis is to the upside targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 80.50 | 80.20 | 80.00 | 79.80 | 79.55 |
| Resistance | 81.00 | 81.25 | 81.65 | 82.05 | 82.35 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair below 80.75 targeting 79.55 and stop loss above 81.65 might be appropriate. | ||||
Swiss Franc (CHF)
Morning Report
Influenced by the positive divergence on Stochastic, the USD/CHF pair has soared forming a clear bullish engulfing candlestick pattern as seen on the provided daily chart. Furthermore, RVI 14 succeeded in overlapping positively; thus, 61.8% Fibonacci retracement level has proved its solidity. Focus now is on 0.9080 and 0.9105 and a break above these levels will bring panic buying interests. Below 0.8900 will negate and give us a rational reason for concern.
The trading range for today is among key support at 0.8800 and key resistance at 0.9230.
The general trend over short term basis is to the upside targeting 0.9950 as far as areas of 0.8850 remain intact.
| Support | 0.9000 | 0.8985 | 0.8965 | 0.8925 | 0.8900 |
| Resistance | 0.9030 | 0.9080 | 0.9105 | 0.9145 | 0.9175 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9010 targeting 0.9200 and stop loss below 0.8900 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
Although the pair dropped sharply within yesterday’s session, it failed to print a daily closing below 0.9880 level, therefore, our previously suggested scenario for a bullish rebound continues to be effective. Momentum indicators remain lagging the price. In general, we will hold onto our expectations unless we see steady trading below 0.9880.
The trading range for the day is expected among the key support at 0.9850 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 | 0.9890 | 0.9870 | 0.9850 | 0.9800 | 0.9770 |
| Resistance | 0.9925 | 0.9970 | 1.0020 | 1.0050 | 1.0080 |
| Recommendation | Based on the charts and explanations above, we recommend buying the pair around 0.9915 targeting 1.0000 and 1.0150, stop loss daily closing below 0.9880. | ||||
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