Technical Analysis for Major Currencies

Daily Forex Technicals | Written by Crown Forex | Oct 01 08 06:57 GMT |

EURO

Another vigorous downside movement took the pair near the 1.40 psychological barrier. We see mixed signals on the Stochastic indicator on the four hour charts that will perhaps result in high volatility on the short term while the Relative strength indicator is in a descending channel showing the pair being slightly oversold and the ADX indicator failed to specify a trend as it showed weakness. On the other hand, the pair returned to trade in the descending channel with a key resistance at 1.4200 and despite us expecting an upside correction, if the pair fails to trade above the mentioned level, the bullish movements will not contine and will result in a downside wave neglecting the need for a correction. The trading range for today is among the key support at 1.3980 and the key resistance at 1.4335 The general trend is to the downside as far as 1.5080 remains intact with targets at 1.4040 and 1.3860

Support: 1.4100, 1.4080, 1.4070, 1.4000, 1.3980
Resistance: 1.4150, 1.4180, 1.4200, 1.4215, 1.4335
GBP

Opposing technical expectations, the pair extended its losses yesterday to reach the 1.77 level. Forecasts of an incline today as the Relative strength indicator is still showing that the pair is oversold yet the Stochastic indicator shows the pair being overbought on an intraday basis while the MACD indicator is pointing to the downside on the short term. The possibility of an upside correction for today is valid, which is what we expect, but as long as the pair fails to build a solid base aobve the 1.8060 level, we don't expect to see the divergence of the short term trend for today but it will take the form of a slight bullish wave during trading today. The trading range for today is among the key support at 1.7645 and the key resistance at 1.8060 The general trend is to the downsideas far as 1.9400 remains intact with targets at 1.7600 and 1.7280

Support: 1.7835, 1.7770, 1.7730, 1.7670, 1.7645
Resistance: 1.7895, 1.7905, 1.7960, 1.8030, 1.8060

Recommendation: Buy (carefully) above 1.7830 with targets at 1.7910 and stop loss below 1.7770
JPY

The pair rebounded to trade above the 104.60 where it was able to close above it on the daily charts resulting in a clear neutral trend. We see the pair in an oversold area on the Stochastic indicator yet the releative strength indicator is showing a neutral bias. From here we expect trading to be of high volatility but with tendency to the downside for today but since trading is between the 104.60 and 107.20 levels we can't specify a clear trend The trading range for today is among the key support at 103.80 and the key resistance at 107.40 The general trend is to the upside as far as 103.00 remains intact with targets at 111.00 and 113.24

Support: 105.35, 105.00, 104.60, 104.00, 103.80
Resistance: 105.80, 106.20, 107.00, 107.20, 107.40
CHF

A significant upside movement took the pair into an overbought area as seen on the momentum indicators on the four hour chart. The 1.1230 level is a critical level on the short term and as long as the pair doesn't close above it on the four hour chart we expect to witness a downside wave taking the pair to the 38.2% correction for the ascending channel that occured during the past two days at 1.1085 The trading range for today is among the key support at 1.0920 and the key resistance at 1.1365 The general trend is to the upside as far as 1.0570 remains intact with targets at 1.1025 and 1.1455

Support: 1.1145, 1.1085, 1.1035, 1.0980, 1.0920
Resistance: 1.1205, 1.1230, 1.1285, 1.1315, 1.1365

Recommendation: Sell the pair below 1.1200 with targets at 1.1100 and stop loss above 1.1285
CAD

The breach of the 1.0500 level resulted in a sharp incline for the pair to reach levels above the 1.0625 level as the pair is still trading within an upside trend but to assure this trend, the 1.0625 level must remain intact taking targets to 1.0695. We see the pair being slightly overbough on the short term momentum indicators where from there we expect that breaching that pair will be technically difficult and the biggest possibility is that it will fail to break the level today. The trading range for today is among the key support at 1.0425 and the key resistance at 1.0775 The general trend is to the upside as far as 1.0350 remains intact with targets at 1.0825 and 1.1000

Support: 1.0580, 1.0560, 1.0500, 1.0465, 1.0425
Resistance: 1.0625, 1.0655, 1.0695, 1.0715, 1.0775

Crown Forex

disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.