Morning Report
In line with our yesterday's bearish scenario, the pair has plummeted achieving a decisive breakout below the uptrend line that carried the movements from the short term low recorded around 1.2625 to the high of 1.3485 as seen on the provided daily chart. This breakout is to be added to the breakout below 38.2% Fibonacci of the entire upside rally and below moving averages suggesting additional bearishness over intraday basis. Another breakout below 1.3005 will bring panic sell-off actions. On the other side, the wide resistance area between 1.3230 and 1.3250 should act as a ceiling for bears.
The trading range for today is among key support at 1.2740 and key resistance at 1.3385.
The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 remain intact.
| Support | 1.3005 | 1.2960 | 1.2890 | 1.2830 | 1.2780 |
| Resistance | 1.3080 | 1.3140 | 1.3200 | 1.3230 | 1.3250 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.3080 targeting 1.2825 and stop loss above 1.3250 might be appropriate. | ||||
Great British Pound (GBP)
Morning Report
Cable has moved violently downwards respecting our constructive bearish outlook explained during the past three days. Moreover, it has been able to achieve a negative daily closing below SMA 200 and below the pivotal support-turned into resistance- at 1.5890. Thus, we hold onto our negative predictions over intraday basis supported by the bearishness appearing on Stochastic; noting that, a break below 1.5785 will assist bears to dominate the market movements over upcoming sessions. Only a break above the psychological level of 1.6000 will give us a reason for pause while taking 1.6075-1.6090 will damage the negative overview.
The trading range for today is among key support at 1.5515 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 | 1.5820 | 1.5780 | 1.5680 | 1.5630 | 1.5585 |
| Resistance | 1.5925 | 1.5975 | 1.6025 | 1.6075 | 1.6165 |
| Recommendation | Based on the charts and explanations above our opinion is, selling the pair around 1.5900 targeting 1.5635 and stop loss above 1.6095 might be appropriate. | ||||
Japanese Yen (JPY)
Morning Report
The pair continued fluctuating violently yesterday without breaching 82.50 or 81.50 until now. Those two edges are very important as we discussed earlier as a break above 82.50 will confirm the classical continuation structure-potential flag- while taking 81.50 will postpone the bullishness for a while. Technical indicators reflect this hesitation; thus, we will remain neutral over intraday basis.
The trading range for today is among key support at 80.20 and key resistance now at 84.15.
The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.
| Support | 82.00 | 81.50 | 81.00 | 80.75 | 80.20 |
| Resistance | 82.50 | 82.80 | 83.20 | 83.70 | 84.15 |
| 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. | ||||
Swiss Franc (CHF)
Morning Report
With the slant negative divergence appearing on RSI 14, it seems that the pair has placed the top of internal first wave of the bigger third wave explained earlier. Thereby, potential mild correction may occur to form the internal second wave before starting the major third of the grand third. To conclude, we believe that the pivotal support areas between 0.9140 and 0.9125 could be retest to relieve RSI and to draw the required corrective structure of the suggested Elliott sequence before moving higher once again mainly targeting 0.9330-0.9355 zones over intraday basis followed by 0.9590 over short term basis.
The trading range for today is among key support at 0.0.8925 and key resistance at 0.9420.
The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.
| Support | 0.9175 | 0.9145 | 0.9105 | 0.9080 | 0.9030 |
| Resistance | 0.9230 | 0.9260 | 0.9310 | 0.9355 | 0.9400 |
| Recommendation | Based on the charts and explanations above our opinion is, buying the pair around 0.9145 targeting 0.9355 and stop loss below 0.8990 might be appropriate. | ||||
Canadian Dollar (CAD)
Morning Report
The pair failed to maintain the upside bias yesterday to reverse again. In general, the pennant formation pattern continues to confine trading; where the trading range among the pattern is getting narrower, therefore, we prefer to wait for a breakout of this trading range among the pattern to look for a directional move, accordingly we will stay aside today.
The trading range for the day is expected among the key support at 0.9850 and resistance at 1.0080.
The short term trend is to the upside targeting 1.0650 with steady weekly closing above 0.9880.
| Support | 0.9900 | 0.9870 | 0.9850 | 0.9800 | 0.9770 |
| Resistance | 0.9950 | 0.9990 | 1.0020 | 1.0050 | 1.0080 |
| Recommendation | Based on the charts and explanation above , we recommend staying aside for further confirmations. | ||||
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