Mid-term Analysis for Major Currencies

EURO

The Euro versus Dollar pair neared the awaited resistance at 1.4675, yet failed to maintain its bullish momentum resulting in a downside correction before attempting to head towards it. Trading is currently near the 23.6% correction and we expect further declines towards the 38.2% correction at 1.4465, before rebounding back to the upside on the intraday basis targeting 1.4685. The stochastic indicator is entering an oversold area, which supports our overview and is confirmed as far as 1.4360 is intact.

The trading range for today is among the key support at 1.4330 and the key resistance at 1.4865

The general trend is tot the downside as far as 1.4725 remains intact with targets at 1.2120

Support: 1.4530, 1.4465, 1.4410, 1.4360, 1.4320
Resistance: 1.4610, 1.4685, 1.4725, 1.4765, 1.4865

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.4465 to 1.4610 and stop loss below 1.4360 might be appropriate.

GBP

The cable continues to correct to the downside within a bullish channel, as seen in the image above, after touching the resistance at 1.6745 where we still expect further declines before rebounding back to the upside. The awaited support level resides at 1.6540, where from there the pair is to rebound to the upside targeting 1.6800. However, note that a strong resistance is found at 1.6745, which may be an obstacle for the pair. The incline remains as far as 1.6500 is intact.

The trading range for today is among the key support at 1.6350 and the key resistance at 1.7045

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100

Support: 1.6580, 1.6540, 1.6500, 1.6440, 1.6355
Resistance: 1.6685, 1.6745, 1.6800, 1.6830, 1.6860

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.6540 to 1.6700 and stop loss below 1.6440might be appropriate.

JPY

The USD/JPY pair traded between 90.00 – 90.50 pressured to the upside by momentum indicators. We expect high volatility within narrow ranges towards 90.90 – 91.40, in an attempt to gather enough bearish momentum to continue the short term trend to the downside; targeting initially 89.70. The downtrend continues, as far as 92.10 is intact.

The trading range for today is among the key support at 88.40 and the key resistance at 94.70

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60

Support: 90.00, 89.70, 89.15, 88.40, 87.95
Resistance: 90.90, 91.40, 92.10, 92.60, 93.30

Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 90.90 to 89.70 and stop loss above 91.70 might be appropriate

CHF

The Dollar versus Swissy pair started to correct the last decline, where we expect the pair to reach 38.2% correction at 1.0480 before reversing to the downside on the short term. From here we expect the pair to decline on the intraday basis; targeting 1.0300 and 1.0000 respectively, as far as 1.0550 remains intact.

The trading range for today is among the key support at 1.0000 and the key resistance at 1.0700

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600

Support: 1.0340, 1.0300, 1.0275, 1.0220, 1.0135
Resistance: 1.0420, 1.0480, 1.0550, 1.0610, 1.0640

Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 1.0480 to 1.0340 and stop loss above 1.0550 might be appropriate

CAD

The Dollar versus Loonie pair couldn't extend gains past the 1.0715 key support resulting in a rebound to the upside, as it may be forming the second top; seen last Thursday around 1.0880, making us believe a bearish technical pattern is under construction supported by bullish signs appearing on stochastic. The bigger picture supports the decline on the short term, which requires a successful breach on the four hour charts of the above mentioned key support. The decline remains as far as 1.0960 is intact.

The trading range for today is among the key support at 1.0565 and the key resistance at 1.1100

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

Support: 1.0785, 1.0715, 1.0655, 1.0625, 1.0565
Resistance: 1.0885, 1.0925, 1.0960, 1.1000, 1.1035

Recommendation: Based on the charts and explanations above, our opinion is selling the pair from 1.0880 to 1.0715 and stop loss above 1.0960 might be appropriate.

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