Technical Analysis for Major Currencies

EURO

The European currency has reached to a 61.8% the last level of retracement on Fibonacci, plus reaching to a major weekly and daily trend lines, while the currency started to be a bet over sold and started to give signs for a reversal and new targets for the upside wave, the first will be at 1.5618 then at 1.5720 over the short term.

The trading range is among the key resistance level at 1.5730 and the key support level at 1.5520.

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

Support: 1.5520, 1.5505, 1.5480, 1.5462, 1.5425
Resistance: 1.5555, 1.5582, 1.5618, 1.5645, 1.5660

Recommendation: Buy Euro above 1.5520 with a target at 1.5620 and a stop loss below 1.5485

GBP

The British pound is still solid above our risk limit area at 1.9660 with a higher possibility for rallies above 1.98 to 1.9850, which if breached will drive the currency back up again to 1.9950 and 2.0100. The technical indicators are not giving any signs of absolute power for the pair to breakout from the range but as we say the upside direction is the highest probability.

The trading range is among the key resistance level at 2.0000 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: 1.9755, 1.9732, 1.9701, 1.9660, 1.9621
Resistance: 1.9787, 1.9805, 1.9820, 1.9855, 1.9880

Recommendation: Buy British Pound above 1.9730 with a target at 1.9810 and a stop loss below 1.9660

JPY

The dollar against the Japanese yen has reached to the top at 105.80, and a reversal is expected from there as technical indicators are showing that the pair is overbought and there might be a necessity for a decline even if the pair wants to get back up again. Up till now we can't say anything but that the pair is unable to breakout from a 105.80-102.50 range since the 18th of April and therefore we will not recommend any direction until one of the boundaries gets breached.

The trading range for today is among the key resistance level at 105.80 and the key support level at 103.70

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

Support: 105.21, 105.02, 104.80, 104.50, 104.23
Resistance: 105.62, 105.80, 105.90, 106.10, 106.23

Recommendation: Sell USD/JPY below 105.40 with a target at 104.20 and a stop loss above 105.85.

CHF

The pair has got back in a very fast pace to the neutral territory around 1.0520 yesterday and settled around 1.0480 with no clear signs from technical indicators at any level. Here the big possibility is that we will be stuck in the same old range for a while before a break can happen and we start initiating new targets again.

The trading range is among the key resistance level at 1.0620 and the key support level at 1.0390.

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

Support: 1.0470, 1.0434, 1.0410, 1.0390, 1.0357
Resistance: 1.0520, 1.0540, 1.0568, 1.0580, 1.0620

CAD

We are still amid consolidation with technical indicators starting to adjust to the downside but not in a strong shape, we still hold on our neutral opinion with a downside bias for the pair targeting below 0.9700.

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: 0.9862, 0.9855, 0.9823, 0.9790, 0.9769
Resistance: 0.9945, 0.9969, 0.9990, 1.0000, 1.0023

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.

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.

FOREX-DD : Forex Daily Analysis