Technical Analysis for Major Currencies

Daily Forex Technicals | Written by ecPulse.com | Oct 13 09 06:57 GMT |

EURO The euro versus dollar failed to stabilize above 1.4780, touching 1.4815 which is considered minor resistance levels that had forced the pair to set bearish candlestick formation; where on the chart above we can see that this minor resistance has become vital after the pair set three peaks upon it. We currently see a negative crossover on Stochastic; whereas the RSI indicator is witnessing a bearish reversal. These levels support the mentioned resistance where we expect it to be able to return the pair to move to the downside to retest 1.4680, which is the 50 MA levels shown in the image above on the four hour chart. It should be noted that closing the four hours below the mentioned resistance is very important for our expectations to remain intact. The trading range for today is among the key support at 1.4470 and the key resistance at 1.5000. The general trend is to the upside as far as 1.4135 remains intact with targets at 1.6000. Support: 1.4740, 1.4710, 1.4680, 1.4620, 1.4575 Resistance: 1.4790, 1.4815, 1.4845, 1.4890, 1.4955 Recommendation: Based on the charts and explanations above our opinion is selling the pair at 1.4780 and targeting 1.4680 and stop loss above 1.4845, might be appropriate GBP Cable was capable of breach 100% extension, shown above, which indicates more downside movement towards 38.2% correction (the correction for the upside move that began on January 23 and ended on August 5 of this year). We still see a bearish technical pattern on the daily chart provided, where it is still affecting the pair's movement and causing it to ignore the oversold signs on momentum indicators. These technical facts make us expect a bearish direction for today, where the bearish direction my not be free of volatile fluctuations; while stability must remain below 1.5890 to keep the bearish movement over an intraday basis intact. The trading range for today is among the key support at 1.5465 and the key resistance at 1.6110. The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100. Support: 1.5735, 1.5690, 1.5615, 1.5555, 1.5465 Resistance: 1.5805, 1.5890, 1.5925, 1.6000, 1.6035 Recommendation: Based on the charts and explanations above our opinion is selling the pair at 1.5805 targeting 1.5615 and stop above 1.5925, might be appropriate JPY Despite of achieving our expectations yesterday, we see a failed attempt at the first breach that occurred yesterday to the main resistance level for the bearish direction, where it met with 23.6% (the correction for the downside wave that began on August 7 and ended with the pair's final bottom) at 90.30. On the other hand, the failed breach yesterday did not complete the positive signs that had appeared on the pair where a bullish intraday direction remains intact, as long as trading remains above the 50 MA at 89.30. Momentum indicators are mixed; ADX points to a very mixed direction, where this situation usually comes along with the breach of the resistance and support levels. From here we see that there's a possibility to the upside today, where it must stabilize above 90.30. The trading range for today is among the key support at 86.75 and the key resistance at 93.60. The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60. Support: 89.65, 89.30, 89.00, 88.60, 88.60 Resistance: 90.00, 90.30, 90.95, 91.35, 91.60 Recommendation: Based on the charts and explanations above our opinion is buying the pair at 89.65 To target 90.95 and stop loss below 89.00, might be appropriate CHF A sideways direction is still in control of the pair's move where its resistance is the 38.2% extension at 1.0335, and its main support is at 1.0240 and is presented by 76.4% correction for the last bullish intraday direction. The combination of moving average are still bearish and point that the medium term direction is still bearish; whereas, momentum indicators show a case of positive reversal as the bearish direction strength is falling according to ADX where the D- indicator fell sharply. These technical patterns make us expect that the pair will reattempt another ascend and breach 1.0335 towards the 61.8% extension at 1.0400 and then main resistance for the bearish direction at 1.0435, where this expectation will prevail if 1.0240 remains intact. We should warn that the breach of 1.0220 and remaining below it will cancel any bullish correction. The trading range for today is among the key support at 1.0000 and the key resistance at 1.0550. The general trend is to the downside (so far) as far as 1.1225 remains intact with targets at 0.9600. Support: 1.0240, 1.0205, 1.0180, 1.0110, 1.0060 Resistance: 1.0300, 1.0335, 1.0360, 1.0400, 1.0435 Recommendation: Based on the charts and explanations above our opinion is buying the pair at 1.0240 and targeting 1.0400 and stop loss below 1.0180, might be appropriate CAD Major oversold signs for pair make us take another glance at it to explain the bullish direction's failure which we predicted yesterday, to find that the bullish direction is still expected; where the pair is currently trading above the 200% extension for the Base Impulsive Wave as the pair ended the third wave at this extension at 1.0315. From here we expect that a fourth correctional wave should start, where it makes us expect the pair to move to the upside in an attempt to retest 23.6% correction which somewhat joined with the 161.8% extension at levels around the 20 MA at 1.0450. The ascending correction direction requires 1.0315 to remain intact with four-hour closings and oversold momentum indicators insure our expectations for today. The trading range for today is among the key support at 1.0210 and the key resistance at 1.0770. The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000. Support: 1.0315, 1.0285, 1.0245, 1.0200, 1.0125 Resistance: 1.0400, 1.0450, 1.0500, 1.0575, 1.0630 Recommendation: Based on the charts and explanations above our opinion is buying the pair at 1.0250 and targeting 1.0360 and stop loss below 1.0175, 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