Technical Analysis for Major Currencies

By: Crown Forex

EURO

The European currency is targeting higher today as the technical indicators are adjusting for a strong bullish movement and so if the pair breaches the 1.5820 the first target will be 1.5950 and then for new fresh highs above 1.6000. From the downside, the risk limit to this short term bullish scenario lies at 1.5700 which provides the first acceptable support for consolidation purposes.

The trading range is among the key resistance level at 1.5950 and the key support level at 1.5700.

The general trend is to the upside as far as 1.4260 remains intact; targets are set at 1.6080 and 1.6360.

Support: 1.5800, 1.5782, 1.5755, 1.5735, 1.5700
Resistance: 1.5820, 1.5837, 1.5865, 1.5880, 1.5910

Recommendation: Buy Euro above 1.5780 with a target at 1.5880 and a stop loss below 1.5735

GBP

The British pound is determined to achieve its first target today at 1.9945 and it looks like it's going to be able to do it, as the technical indicators are preparing for this move and there are no major obstacles on the way to it. However, if this level is breached we expect to see a climb again to 2.0400. from the other side 1.9660 seems to be the risk limit for any bullish scenario.

The trading range is among the key resistance level at 2.000 and the key support level at 1.9660

The general trend is to the downside as far as 2.0200 remains intact; targets are set at 1.9230 and 1.8700.

Support: 1.9810, 1.9792, 1.9771, 1.9735, 1.9705
Resistance: 1.9850, 1.9888, 1.9900, 1.9910, 1.9965

Recommendation: Buy British Pound above 1.9820 with a target at 1.9930 and a stop loss below 1.9775.

JPY

The dollar against the Japanese yen is still consolidating above the 103 waiting for the right momentum to break down the 102.90-60 level and start achieving its targets, where today it looks like it has the momentum and the shape pattern to at least reach to that point and test it again. While the risk limit for this bearish scenario lies above 104.10.

The trading range for today is among the key resistance level at 104.40 and the key support level at 102.60.

The general trend is to the downside as far as 109.00 remains intact; targets are set at 92.40 and 90.00.

Support: 103.23, 103.00, 102.81, 102.60, 102.32
Resistance: 103.65, 103.85, 104.10, 104.35, 104.72

Recommendation: Sell USD/JPY below 103.70 with a target at 102.90 and a stop loss above 104.10.

CHF

The pair has almost reached to the target at 1.0180 and the next target is at 1.0112 that one if breach will open the way for new fresh lows to the pair below 0.9700 if the momentum and the pattern were right. Good resistances should prevent the pair from climbing back up again at 1.0240and 1.0280 but still the level 1.0180 considered to be very critical for the pair.

The trading range is among the key resistance level at 1.0280 and the key support level at 1.0110.

The general trend is to the downside as far as 1.1000 remains intact; targets are set at 0.9670 and 0.9370.

Support: 1.0210, 1.0180, 1.0168, 1.0124, 1.0112
Resistance: 1.0241, 1.0255, 1.0280, 1.0320, 1.0341

CAD

The target is at 0.9790, yet the USDCAD pair looks like its going to have some difficulties reaching to it, as the technical indicators are not showing any tendency towards the downside yet it is still the highest probability until something comes along and destroy this bearish scenario. And the risk limit is again at the level of parity.

The trading range is among the key resistance level at 1.000 and the key support level at 0.9790.

The general trend is to the downside as far as 1.0700 remains intact; targets are set at 0.9030 and 0.8840.

Support: 0.9880, 0.9855, 0.9820, 0.9790, 0.9770
Resistance: 0.9910, 0.9935, 0.9952, 0.9975, 1.0000

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.

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Disclaimer: Content in the Forex Forecast and Analysis section is for informational purposes only. Contributors submitted Forex Forecast, Forex Commentary, Forex Analysis, and Forex Articles and articles on other markets are based upon information gathered from various sources believed to be reliable, complete, and accurate. However, no guarantee can be made as to the validity of the believed sources. All statements and expressions in the Forex Forecast and Analysis section are opinions, and not meant as investment advice or solicitation. Forex Markets can be volatile and opinions may change without notice.

FOREX : Foreign Exchange Market

FOREX is a word play on the term Foreign Exchange Market. It is a market for buying and selling of currencies from all over the world. Certainly, such transactions are bound to be voluminous. It is just an estimate that there are about transactions of $1.5 trillion USD on a daily basis in the FOREX. Now just compare this with the paltry $300 billion USD a day transactions for the US Treasury Bond and the $100 billion a day transactions for the US Stock Exchange.

The FOREX came into existence in 1971 when the fixed currency exchanges were abolished. Currencies no longer had fixed values after that; on the contrary, their rates (mostly taken in comparison with the USD) were fluctuating, and changed on a daily basis. Throughout the seventies and the eighties the FOREX grew steadily, showing more advancement in the later years. The market has stupendously grown from $70 billion USD a day to the staggering amount that it transacts today on a daily basis.

There are actually about five thousand trading institutions in the FOREX. These include international banks, central government banks such as the US Federal Reserve, and commercial companies and brokers for all types of foreign currency exchange. The best thing that shows the unbiased nature of the FOREX market is that it has no fixed headquarters anywhere – it operates primarily from all major cities like New York, Tokyo, London, Hong Kong, Singapore, Paris, Frankfurt, etc. One can even use the telephone or the internet to make the transactions. The major businesses at the FOREX are the buying and selling of products in other countries. Several transactions are also conducted from the currency brokers or traders who stand to make small profits with the daily fluctuations in the market.

Most of the FOREX business is centered on big banks and financial institutions, but it doesn’t mean that the FOREX is inaccessible to small investors. The recent changes in the financial regulations have effectuated this accessibility. Earlier, a minimum transaction size was required to conduct business with the FOREX. But the current rules have made it possible to break large inter-bank units into smaller bits. Each bit is worth as less as $100,000. This makes it possible to each individual investor through loans that are extended for trading, known as leverage. The ratio to control the lots is 100:1. This means, every $1000 USD will allow one to control $100,000 on the FOREX.

The benefits of trading with the FOREX are mentioned below:-

(1) Liquidity of Investments – As the FOREX is a huge market, the funds have a very high degree of liquidity. This is because of the presence of the international banks who provide their bids and carry out a large number of transactions on a daily basis. Therefore, there is always a buyer or seller for any type of currency.

(2) Highest Degree of Accessibility – The FOREX is open 24 hours a day for 5 days a week. Every Monday morning the exchange opens at Australian Standard Time and closes on Friday afternoon at New York time. Greater accessibility is provided because the transactions can be conducted from the person’s home or office.

(3) Open Market – At the FOREX, there are no secrets. All the fluctuations that occur in the market are made accessible to everyone at the same time. There is no insider trading in the FOREX.

(4) No Commission – There is no hassle of paying commission to the brokers in the FOREX. Here the brokers earn by setting up a difference between the buying price and the selling price of a currency, which is known as a spread.

It must be understood by now that for the FOREX to work effectively, the currencies must always be traded in pairs. For instance, the Japanese yen must be traded against the euro. When one kind of currency is sold, there should be another to be bought in its stead.

The profit happens because there is always mobility between the different currencies. Even if there is a miniscule change in the exchange rate, then it could mean substantial changes in the profits due to the large amount of money involved in the transactions. People are thronging to the FOREX and not any other institution due to the trust that they have in it. To add to the advantage, the market is absolutely well-advanced and uses sophisticated software for dealing out its transactions.

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