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Technical Major Currencies Report

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Technical Major Currencies Morning Report

Thu, Nov 26 2009, 09:26 GMT
by ecPulse.com analysis team

ecPulse.com

EUR/USD

Holding above 1.5030, powered the pair to reach the vital resistance at 1.5135, however, the pair requires more bullish momentum to achieve this level and head towards levels that are more bullish. We see that momentum indicators show overbought signs which make us believe that the pair could slightly correct to the downside to retest the suggested neckline for the bullish technical pattern at 1.5050 – 1.5035, then we expect to enter a new bullish wave. The bullish direction over intraday basis requires 1.4935 to remain intact.

The trading range for today is among the key support at 1.4805 and the key resistance at 1.5315.

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

Support 1.5080 1.5035 1.5000 1.4970 1.4915
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Resistance 1.5130 1.5165 1.5215 1.5280 1.5315
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Recommendation Based on the charts and explanations above our opinion is buying the pair from 1.5050 targeting 1.5215 and stop loss below 1.4970, might be appropriate

GBP/USD

Cable was not able to set a four-hour closing above 61.8% correction level, shown in the image above, at 1.6720; therefore, pushing the pair to retest the key support levels between 1.6575 and 1.6600. We currently see the start of a possible formation for an ascending channel; whereas on the RSI index we see a bearish technical pattern that makes us expect some possible bearish movement and then returning to ascend. It is vital that 1.6525 remains intact so that the bullish scenario may prevail.

The trading range for today is among the key support at 1.6405 and the key resistance at 1.6875.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

Support 1.6645 1.6600 1.6575 1.6525 1.6465
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Resistance 1.6720 1.6790 1.6830 1.6875 1.6960
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Recommendation Based on the charts and explanations above our opinion is buying the pair from 1.6600 targeting 1.6830 and stop loss below 1.6525, might be appropriate

USD/JPY

The breach of 88.00 caused a sharp descend, which took us towards the support at 86.25 which represents 138.2% correction level, shown in the image above. We still expect more descends; where ADX index points to a volatile bearish direction, but may first make the pair retest the resistance levels since it does not surpass 87.35, which might be followed with a possible bearish move, head towards the next target represented by the 161.8% correction at 85.40 yen per dollar. Momentum indicators support the possibility of a minor bullish correction.

The trading range for today is among the key support at 84.15 and the key resistance at 89.65.

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

Support 86.25 85.80 85.40 85.00 84.15
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Resistance 87.00 87.35 87.80 88.00 88.40
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Recommendation Based on the charts and explanations above our opinion is selling the pair from 86.80 target 85.40 and stop loss above 87.35, might be appropriate

USD/CHF

Some bullish correction might be necessary for today to pull our momentum indicators from the major oversold areas. On the other hand, we see that this upside move could merely be a retest for the neckline, where the neckline resides around 1.0035. Thus, we expect a new bearish wave after some correction.

The trading range for today is among the key support at 0.9740 and the key resistance at 1.0220.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.
Support 0.9925 0.9865 0.9845 0.9805 0.9740
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Resistance 0.9975 1.0000 1.0035 1.0095 1.0120
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Recommendation Based on the charts and explanations above our opinion is selling the pair from 1.0035 targeting 1.9845 and stop loss above 1.0120, might be appropriate

USD/CAD

Despite of the fact that we still see the direction remaining bearish; the 100% extension at 1.0450 was able to halt the downside move temporarily to pull out momentum indicators from yesterday's oversold areas. However, now we see that the stochastic is suffering from overbought signs that could make main resistance sharply move to the downside and cause more descends towards 161.8% extension at 1.0330. It is important that 1.0450 is breached to the downside to maintain our expectations for today of a possible bearish direction.

The trading range for today is among the key support at 1.0410 and the key resistance at 1.0980.

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

Support 1.0450 1.0425 1.0390 1.0330 1.0275
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Resistance 1.0500 1.0590 1.0640 1.0700 1.0760
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Recommendation Based on the charts and explanations above our opinion is selling the pair from 1.0500 targeting 1.0390 and stop loss above 1.0590, might be appropriate

Published on  Thu, Nov 26 2009, 09:29 GMT