Technical Analysis for Major Currencies

EURO

The European currency is still in a neutral territory waiting for either the 1.5380 or the 1.5535 to get breached and define a trend for the currency, while technical indicators are also giving mixed up signals the short term to intermediate trend remains vague, waiting for confirmation to initiate any new targets, yet for today and as the currency is on a major support at 1.5380 and it is way over sold we can say there is a potential for a slight upside movement.

The trading range is among the key resistance level at 1.5530 and the key support level at 1.5380.

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

Support: 1.5380, 1.5355, 1.5324, 1.5284, 1.5248
Resistance: 1.5420, 1.5463, 1.5489, 1.5520, 1.5535

Recommendation: Buy Euro above 1.5380 with a target at 1.5460 and a stop loss below 1.5350

GBP

The British pound eventually surrendered and got into the descending channel again will probably start declining day after day from now, yet the currency is way oversold to continue its downside movement so we expected an up wave correction that might not extend above 1.9600 the upper limit of the descending channel, and if it remained solid maybe we will see some consolidation around that area, with some momentum gathering preparing for a downside movement for the pair.

The trading range is among the key resistance level at 1.9620 and the key support level at 1.9360

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

Support: 1.9508, 1.9490, 1.9445, 1.9420, 1.9387
Resistance: 1.9535, 1.9555, 1.9582, 1.9600, 1.9622

Recommendation: Buy British Pound above 1.9510 with a target at 1.9600 and a stop loss below 1.9475.

JPY

The dollar against the Japanese yen seems to be preparing for an upside move today as all technical indicators say, yet we can not and as we mentioned earlier initiate any new targets until the 105.50-85 gets breached and from there we will start setting new targets for the pair maybe even on the medium to longer term trends, the expected movement today is for the upside yet no recommendations seems to fit today.

The trading range for today is among the key resistance level at 105.80 and the key support level at 103.90

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, 104.90, 104.72, 104.50, 104.23
Resistance: 105.50, 105.72, 105.86, 106.20, 106.45

CHF

The dollar against the Swiss frank is still in its neutral territory pointing lower as it remains below 1.0450 stuck in a narrow range just as any other major currency and waiting for the right push to jump of the edge, as far as the level 1.0450 is intact we can't turn our views that the downside direction is still the best shot, with targets at 1.0240.

The trading range is among the key resistance level at 1.0460 and the key support level at 1.0220.

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

Support: 1.0450, 1.0460, 1.0489, 10520, 1.0555
Resistance: 1.0420, 1.0390, 1.0368, 1.0329, 1.0285

Recommendation: Sell USDCHF below 1.0450 with a target at 1.0390 and a stop loss above 1.0470.

CAD

The pair has turn neutral above the 1.0120 consolidating now for a next movement to come, yet the pair reached to an over sold area that will force it to drop today at least to the level 1.0120 today and if breached we will start thinking of downside targets again for the pair.

The trading range is among the key resistance level at 1.0120 and the key support level at 0.9900.

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

Support: 1.0120, 1.0111, 1.0092, 1.0069, 1.0034
Resistance: 1.0160, 1.0189, 1.0220, 1.0235, 1.0264

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