Technical Analysis for Major Currencies

Daily Forex Technicals | Written by Crown Forex | Oct 22 08 07:14 GMT |

EURO Breaching the 61.8% correction at 1.3335 and trading below it resulted in the pair breaching the 1.3070 psychological barrier and has initiated a new bearish wave neglecting momentum indicators that show the need for an upside direction as the pair is being traded heavily in an oversold area. The target on the short term now is at the 76.4% correction at 1.2705 at the very least where movements are of high volatility between the 1.3070 and 1.2705 levels. However, this doesn't mean that the pair might not reboung to the upside, but in order to confirm that, the pair must trade above the 1.3335 level. The trading range for today is among the key support at 1.2705 and the key resistance at 1.3070; whereas the general trend is to the downside as far as 1.5080 remains intact with targets at 1.2705 and 1.2480 Support: 1.2815, 1.2745, 1.2705, 1.2685, 1.2560 Resistance: 1.2860, 1.2895, 1.2960, 1.3070, 1.3150 GBP A stong downside trend allowed the pair to breack the 61.8% correction for the long term ascending channel that started on June 10, 2001 and ended on November 4, 2007 at 1.6550. The pair has now completed its medium term targets so far and has opened the way for new targets. Trading is above the 161.8% extention for the upside channel where from there the pair could slightly incline if it was able to trade above the 1.6250 levels as it is supported by the momentum indicators showing the pair being heavily oversold. However, direction indicators show the continuation of the downside direction on the short and medium term. The trading range for today is among the key support at 1.6095 and the key resistance at 1.6550; whereas the general trend is to the downside as far as 1.9400 remains intact with targets at 1.6090 and 1.5450. Support: 1.6310, 1.6250, 1.6200, 1.6160, 1.6095 Resistance: 1.6380, 1.6455, 1.6480, 1.6500, 1.6550 JPY The short term upside channel has been broken but we have yet to see a confirmation for the downside movements for today since the key support for the upside channel at 99.30 is still holding strong. This support level should be carefully monitored since not only has this level been the key support for the short term ascending channel, but it is also the neckline to confirm the downside movements. From here we epect trading for today to remain near these levels where if the pair was albe to build a solid base above 99.30, a new uspide wave will be initiated to retest the broken support at 100.15 at the very least. However, trading below the level will result in a steep downside trend due to the buying of the yen and not the sale of the dollar as seen on volume indicators, where from there we will witness a significant decline to target levels below 98. The trading range for today is among the key support at 96.90 and the key resistance at 102.45; whereas the general trend is to the downside as far as 104.60 remains intact with targets at 98.55 and 97.30. Support: 99.30, 98.95, 98.40, 97.90, 97.05 Resistance: 100.25, 100.80, 101.35, 101.60, 102.45 CHF The pair is trading in movements trying to confirm levels above the 1.1665 level which if succeeded, this could open the way to the key resistance for the upside channel at 1.1800. With trading being in an overbought area according to the stochastic indicator and the relative strength indicator, the previously mentioned levels could be the point at which the pair could undergo a downside correction but despite that, the short term trend is still to the upside. The trading range for today is among the key support at 1.1415 and the key resistance at 1.1805; whereas the general trend is to the upside as far as 1.0970 remains intact with targets at 1.1685 and 1.1795. Support: 1.1635, 1.1570, 1.1535, 1.1495, 1.1445 Resistance: 1.1680, 1.1710, 1.1780, 1.1805, 1.1970 CAD The pair is trading in movements trying to confirm levels above the 1.1665 level which if succeeded, this could open the way to the key resistance for the upside channel at 1.1800. With trading being in an overbought area according to the stochastic indicator and the relative strength indicator, the previously mentioned levels could be the point at which the pair could undergo a downside correction but despite that, the short term trend is still to the upside. The trading range for today is among the key support at 1.1415 and the key resistance at 1.1805; whereas the general trend is to the upside as far as 1.0970 remains intact with targets at 1.1685 and 1.1795. Support: 1.1635, 1.1570, 1.1535, 1.1495, 1.1445 Resistance: 1.1680, 1.1710, 1.1780, 1.1805, 1.1970 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.