EURO
The pair continued to decline after completing the sideways correction we pointed out to earlier where we see the pair now trading below the 100% extension for the downside wave that started on 5-10-2008 and ended on 7-10-2008. This extension lies at 1.2490 and we see that if trading remains below below this level, it will result in further declines to the 138.2% - 127% extensions between 1.2375 and 1.2325 at the very least.
The trading range for today is among the key support at 1.2225 and the key resistance at 1.2795
The general trend is to the downside as far as 1.5080 remains intact with targets at 1.2340 and 1.2225
Support 1.2435 1.2415 1.2375 1.2365 1.2325
Resistance 1.2535 1.2680 1.2695 1.2735 1.2795
Recommendation Sell the pair below 1.2500 with targets at 1.2325 and stop loss above 1.2597
Great British Pound (GBP)
The pair was able to reach the key support for the downside channel and as seen on the relative strength indicator we see signs of divergence as the pair is being oversold on the momentum indicators on the medium term. Despite us believing that the downside trend will continue to take the pair to levels lower than the current levels due to the breach of several historical supports, it will still face a support level that could be strong enough to rebound the pair to the upside in correction movements at 1.4805 followed by 1.4750. However, the breach of these supports will not allow for the occurrence of an upside correction.
The trading range for today is among the key support at 1.4640 and the key resistance at 1.5475
The general trend is to the downside as far as 1.9400 remains intact with targets at 1.4700 and 1.4095
Support 1.4870 1.4835 1.4805 1.4750 1.4715
Resistance 1.4990 1.5115 1.5215 1.5330 1.5475
Recommendation Buy the pair above 1.4855 with targets at 1.5050 and stop loss below 1.4730
Japanese Yen (JPY)
A sharp decline took the pair to the 61.8% correcton level at 94.60 before rebounding to the upside to currently trade near the 50% correction at 95.65. We see high volatility could dominate trading in the upcoming period yet the rebound from the 61.8% which is known as a critical level will provide the pair with some bullish momentum.
The trading range for today is among the key support at 93.35 and the key resistance at 98.60
The general trend is to the downside as far as 104.60 remains intact with targets at 91.95 and 89.30
Support 95.65 95.15 94.95 94.60 93.90
Resistance 96.00 96.40 96.80 97.30 98.00
Recommendation Buy the pair above 95.65 with targets at 96.30 and stop loss below 94.43
Swiss Franc (CHF)
The pair failed to build a solid base above 1.1900 and declined several times from there was we see a contracting triangle on the charts while the Stochastic indicator shows the pair being highly overbought. We see the pair is sitll in an upside trend yet trading today should be cautious since if the pair breaches the 1.1790 level and remains below it, this will result in a clear downside movement whereas trading above the 1.1905 level will allow the pair to incline quite quickly.
The trading range for today is among the key support at 1.1685 and the key resistance at 1.2020
The general trend is to the upside as far as 1.0570 remains tintact with targets at 1.1945 and 1.2065
Support 1.1860 1.1815 1.1790 1.1765 1.1745
Resistance 1.1895 1.1905 1.1915 1.1950 1.2020
Recommendation Buy the pair above 1.1790 with targets at 1.2000 and stop loss below 1.1671
Canadian Dollar (CAD)
Just as we expected yesterday, the upside trend helped the pair incline in no time. The 1.2415 level is a valid target for the pair as it is also the 61.8% correcton for the descending channel that started on 28-10-2008 and ended on 4-11-200. Today we could see the pair experience high volatility as it is being heavily overbought on the intraday charts.
The trading range for today is among the key support at 1.2050 and the key resistance at 1.2640
The general trend is to the upside as fas as 1.1780 remains intact with targets at 1.3305 and 1.3465
Support 1.2305 1.2260 1.2240 1.2200 1.2150
Resistance 1.2375 1.2415 1.2450 1.2495 1.2550
Recommendation Avoid trading today
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