Thursday, January 24, 2008

Major Technical Analysis

euro

The European currency moved in the upside direction in the first session to hit the critical resistance level at 1.4680s. Then and due to the sell-off, the currency reversed back to the downside in a bearish pattern to close below the opening level but still remaining above the major resistance at 1.4550s after it tested the support level at 1.4510. Therefore we expect the euro today to move in a bullish pattern again.
The trading range for today might be between the key resistance level at 1.4800 and the key support level at 1.4400.
The general trend is up as far as 1. 3860 remains intact targets now at 1.5000 and 1.5230.
We expect buying euro above 1.4545 with a target at 1.4680, stop loss below 1.4500.

gbp

The British pound headed higher in the first session to hit the key resistance level at 1.9640s to create a major bearish move towards the critical support level at 1.9460s. Today, we see the pound lacking suitable momentum from the upside correction to drop down again.
The trading range for today might be between the key resistance level at 1.9700 and the key support level at 1.9360.
The general trend is down as far as 2.0200 remains intact targets now at 1.9230 and 1.8700.
We expect selling sterling below 1.9570 with a target at 1.9400 stop loss above 1.9640.

jpy

The dollar against the Japanese yen yesterday started with a strong bearish move as it failed to pass the major resistance level at 107.30s. The pair then hit the low at the 104.90 support area and therefore we expect the pair to progress towards the downside today after it confirmed some bearish signals.
The trading range for today will be between the key resistance at 108.50 and the key support at 104.80.
The general trend is down as far as 121.30 remains intact, targets at 104.80 and 101.00.
We expect selling USD/JPY below 106.30 with a target at 105.00, stop loss above 107.00.

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