ecPulse.com @ 7:48 AM, Wednesday December 30 2009
Euro
Morning Report
The
negative effect from momentum indicators caused the euro versus the
dollar to move to the downside within the rising wedge pattern, shown
in the image above, after the 23.6% Fibonacci correction held as strong
resistance in front of attempts to ascend. The rising wedge pattern –
which is naturally bearish – makes us expect a bearish direction for today heading towards 1.4215 as a first target. It is vital that 1.4470 remains intact for these expectations to prevail.
The trading range for today is among the key support at 1.4175 and the key resistance at 1.4570.
The general trend is to the upside as far as 1.4035 remains intact with targets at 1.6000.
| Support |
1.4300 |
1.4260 |
1.4215 |
1.4175 |
1.4110 |
|
| Resistance |
1.4400 |
1.4470 |
1.4500 |
1.4570 |
1.4620 |
|
| Recommendation |
Based
on the charts and explanations above our opinion is selling the pair
from 1.4400 targeting 1.4300 and stop loss above 1.4470, might be
appropriate. |
Great British Pound (GBP)
Morning Report
The
cable stabilized below the support level for the main descending
channel, alongside the horizontal support at 1.5920 after stopping at
the MA 50, where the pair is attempting to ascend. The daily close is
below the horizontal support, which paves the way to resume the bearish
direction after a bullish correction ended between 38.2% and 50%
levels. From here we see that the expected direction for today is bearish;
targeting mainly 1.5700. It is important that 1.5980 remains intact
with four-hour closing to achieve the expected bearish direction.
The trading range for today is among the key support at 1.5700 and the key resistance at 1.6045.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.
| Support |
1.5805 |
1.5760 |
1.5700 |
1.5615 |
1.5555 |
|
| Resistance |
1.5920 |
1.5980 |
1.6045 |
1.6090 |
1.6125 |
|
| Recommendation |
Based
on the charts and explanations above our opinion is sending the pair
from 1.5920 targeting 1.5805 and stop loss above 1.6000, might be
appropriate. |
Japanese Yen (JPY)
Morning Report
The
dollar versus the yen continued gradually ascending to near the main
resistance level that currently declined towards 92.45. Momentum
indicators show overbought signs that make us expect a bearish intraday move that
has started to build its base on 92.45 and initially targets 91.55;
taking into consideration that the breach of 92.45 opens that way to
continue trading within the ascending channel towards 73.35.
The trading range for today is among the key support at 90.75 and the key resistance at 93.35.
The general trend is to the downside as far as 102.60 remains intact with targets at 82.60.
| Support |
91.55 |
90.75 |
90.15 |
89.60 |
89.35 |
|
| Resistance |
92.45 |
93.10 |
93.35 |
93.85 |
94.30 |
|
| Recommendation |
Based
on the charts and explanations above our opinion is selling the pair
from 92.45 target 91.55 and stop loss above 93.35, might be appropriate. |
Swiss Franc (CHF)
Morning Report
The
dollar versus swissy succeeded in achieving a flawless touch of the
reversal level, mentioned yesterday, at 1.0275 where trading stabilized
above the first target at 1.0375. However, according to the nature of
the harmonic pattern suggested we see that more technical targets are
on their way to being achieved; thus, we expect a bearish intraday direction that will target 1.0500 and requires four-hour closing above 1.0375.
The trading range for today is among the key support at 1.0200 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 |
1.0375 |
1.0320 |
1.0275 |
1.0200 |
1.0140 |
|
| Resistance |
1.0425 |
1.0450 |
1.0495 |
1.0525 |
1.0610 |
|
| Recommendation |
Based
on the charts and explanations above our opinion is buying the pair
from 1.0375 targeting 1.0500 and stop loss below 1.0275, might be
appropriate. |
Canadian Dollar (CAD)
Morning Report
The
main descending channel has pushed the pair to move to the upside,
after touching its main support levels; where the mentioned bearish
technical pattern targets were achieved. The bullish technical pattern
is presently forming and requires some minor bearish correction to
build a base on levels around 1.0465 – 1.0445 and then start the expected bullish intraday wave to breach the resistance level for the descending channel, mentioned above.
The trading range for today is among the key support at 1.0335 and the key resistance at 1.0350.
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.
| Support |
1.0465 |
1.0420 |
1.0360 |
1.0335 |
1.0270 |
|
| Resistance |
1.0545 |
1.0590 |
1.0650 |
1.0680 |
1.0730 |
|
| Recommendation |
Based
on the charts and explanations above our opinion is buying the pair
from 1.0465 targeting 1.0545 and stop loss below 1.0420, might be
appropriate. |
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