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Technical Major Currencies Report

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Technical Major Currencies Midday Report

Tue, Nov 3 2009, 14:18 GMT
by ecPulse.com analysis team

ecPulse.com

EUR/USD

The morning scenario flipped, where it awaits the breach of resistance for the bullish technical pattern to bearish had made the euro versus dollar pair succeed in breaching its neckline at 1.4680; causing a strong downside move, as well as insuring the four hours close below the main support level for the ascending channel 1.4720. This data makes us expect a bearish trend for the rest of trades today; targeting next levels around 1.4500. Note that the new direction requires the four hours to close below 1.4725.

The trading range for today is among the key support at 1.4500 and the key resistance at 1.4860.

The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000.

Support : 1.4595 1.4535 1.4500 1.4475 1.4440
Resistance : 1.4680 1.4725 1.4795 1.4860 1.4915

Recommendation : Based on the charts and explanations above our opinion is selling the pair at 1.4680 and targeting 1.4595 and stop loss above 1.4725, might be appropriate.

GBP/USD

The cable succeeded in breaching the pivotal support, mentioned this morning, at 1.6335; where it managed to achieve some bearish moves and then return to the pair to retest the breached level. From here our morning expectations remain as is, where we await reaching targets mentioned in our morning report, while the importance of trading remaining below 1.6500 to maintain chances of achieving an expected bearish direction for today.

The trading range for today is among the key support at 1.6160 and the key resistance at 1.6740.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100.

Support : 1.6245 1.6160 1.6120 1.6045 1.6020
Resistance : 1.6335 1.6400 1.6430 1.6500 1.6560

Recommendation : Our morning expectation remains valid.

USD/JPY

The dollar versus yen pair breached minor support 90.15 and achieved some downside movement; whereas the pair returned to test 90.30, which had become a convergence between breached support levels for the bearish technical patterns that were previously mentioned. We still see that the expected direction for the remainder of trades for today to be bearish; where its main targets are around 88.00. The chance of achieving this downside move requires 91.00 to remain intact.

The trading range for today is among the key support at 88.00 and the key resistance at 92.35.

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60.

Support : 89.65 89.00 88.35 88.00 87.80
Resistance : 90.30 91.00 91.25 91.80 92.25

Recommendation : Based on the charts and explanations above our opinion is selling the pair at 90.30 To target 89.00 and stop loss above 91.00, might be appropriate

USD/CHF

The dollar versus swissy pair pushed strongly to the upside, breaching the main resistance 1.0260 as well as the neckline level (1.0275) for the bullish technical pattern (double tops) that appear after achieving the mentioned breach. The chain of breaches are supposed to carry the pair towards 1.0400 as a first target, then 1.0500; where it is supported by this new bullish direction's continuation, while it forms a bullish technical pattern (head and shoulders) that appears on the four-hour chart that supports achieving more upside movements. From here we expect a rebound to the upside for remaining trades today; heading towards the mentioned targets, while chances of a bearish correction pressured by negative signs on momentum indicators are good.

The trading range for today is among the key support at 0.9975 and the key resistance at 1.0500.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.

Support : 1.0275 1.0200 1.0160 1.0130 1.0090
Resistance : 1.0350 1.0390 1.0450 1.0480 1.0550

Recommendation : Based on the charts and explanations above our opinion is buying the pair at 1.0275 and targeting 1.0400 and stop loss below 1.0200, might be appropriate

USD/CAD

The dollar versus loonie pair headed upwards this morning, while trading naturally within the ascending channel that organizes present trading, after building a base on its support level. The start of a new bullish short-term wave seems to be appearing, and will be confirmed if the pair does not breach the resistance at 1.0875; where the bearish direction mentioned this morning will prevail for now, until we confirm the breach of the mentioned resistance 1.0875.

The trading range for today is among the key support at 1.0430 and the key resistance at 1.0990.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.

Support : 1.0770 1.0710 1.0635 1.0600 1.0540
Resistance : 1.0845 1.0875 1.0960 1.0990 1.1045

Recommendation : Our morning expectation remains valid.

Published on  Tue, Nov 3 2009, 14:21 GMT