Technical Analysis for Major Currencies

Daily Forex Technicals | Written by ecPulse.com | Sep 07 09 05:46 GMT |

EURO The 61.8% correction level was able to halt further declines for the pair after Friday's NFP resulting in the pair rebounding to form a bullish technical pattern with a neckline at 1.4345 as seen in the image above. The stochastic indicator shows the pair being overbought which may result in volatile trading as the pair attempts to breach the neckline yet we expect the pair is to incline on the intraday basis targeting 1.4650 confirmed by a four hour close above 1.4300. The trading range for today is among the key support at 1.3975 and the key resistance at 1.4650 The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120 Support: 1.4300, 1.4250, 1.4170, 1.4145, 1.4100 Resistance: 1.4345, 1.4375, 1.4430, 1.4475, 1.4550 Recommendation: Based on the charts and explanations above, our opinion is buying the pair with the breach of 1.4345 to 1.4450 and stop loss below 1.4250 might be appropriate GBP The 1.6290 level limited further losses for the Cable to rebound to the upside to form a bullish technical pattern with a pivot resistance at 1.6380 as the pair currently trades near it in an attempt to confirm the breakout. From here we expect the pair is to incline today on the intraday basis confirmed by a four hour closing above the mentioned resistance level to push the pair towards 1.6650 as an initial target as far as 1.6250 remains intact. The trading range for today is among the key support at 1.5870 and the key resistance at 1.6670 The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100 Support: 1.6305, 1.6250, 1.6180, 1.6155, 1.6095 Resistance: 1.6380, 1.6455, 1.6505, 1.6560, 1.6610 Recommendation: Based on the charts and explanations above, our opinion is buying the pair with the breach of 1.6380 to 1.6560 and stop loss below 1.6305 might be appropriate JPY The USD/JPY pair breached the key resistance for the downside channel and as we see in the above image, the stochastic indicator is showing the pair being overbought which may pressure for a slight decline to retest the previously breached key resistance (currently at 92.60) before rebounding to the upside targeting 95.00. Note that the short term trend remains to the downside and this incline may be nothing more than a correction. A four hour closing below 92.60 will continue the decline without the need for a correction. The trading range for today is among the key support at 90.00 and the key resistance at 95.10 The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60 Support: 92.60, 91.91, 91.40, 90.95, 90.40 Resistance: 93.25, 93.80, 94.25, 95.00, 95.55 Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 92.60 to 94.25 and stop loss below 91.90 might be appropriate. CHF The Dollar versus Swissy pair surged to the upside in an attempt to breach the key resistance at 1.0675 yet the continuous closing below this level pressures the pair to the downside as we see the possibility of forming a triple top. From here we expect the pair is to decline on the intraday basis to breach the 1.0550 critical support and open the way towards 1.0400 and 1.0000 respectively. Trading below 1.0665 will keep the trend to the downside. The trading range for today is among the key support at 1.0300 and the key resistance at 1.0915 The general trend so far is to the upside as far as 1.0550 remains intact with targets at 1.2245 Support: 1.0550, 1.0480, 1.0450, 1.0400, 1.0375 Resistance: 1.0665, 1.070, 1.0740, 1.0800, 1.0890 Recommendation: Based on the charts and explanations above, our opinion is selling the pair with the breach of 1.0550 to 1.0400 and stop loss above 1.0675 might be appropriate CAD The Dollar versus Loonie pair was able to reach our suggested target at 1.0825 to maintain trading around this level. As we see in the above image, trading below 1.0915 will confirm the downside direction to return within the key descending channel on the medium term. The stochastic indicator may result in a slight upside correction to gather enough bearish momentum before reversing back to the downside to initially target 1.0715 before extending towards 1.0300. 1.0915 remaining intact is vital for the decline to occur. The trading range for toady is among the key support at 1.0625 and the key resistance at 1.1320 The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300 Support: 1.0825, 1.0785, 1.0715, 1.0655, 1.0625 Resistance: 1.0915, 1.100, 1.1060, 1.1150, 1.1200 Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 1.0915 to 1.0715 and stop loss above 1.1000 might be appropriate. Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, 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, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk