Technical Analysis for Major Currencies

EURO

The European currency supported by yesterday 's Trichet speech was able to break from that neutral area and climb above the ascending trend line again, which again gives the euro an edge in trading, and now we can initiate some new targets around 1.5950 if the euro maintained the same level of strength and the sound fundamentals in the up coming period. Today the possible target is around 1.5720 in light with the U.S. jobs report.

The trading range is among the key resistance level at 1.5720 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: 1.5598, 1.5580, 1.5555, 1.5535, 1.5520
Resistance: 1.5620, 1.5635, 1.5660, 1.5692, 1.5730

Recommendation: Buy Euro above 1.5580 with a target at 1.5665 and a stop loss below 1.5545

GBP

The British pound and despite it did climb well yesterday is still trapped in the descending channel with a ceiling at 1.9580 which if not breach with the 1.9610, the intermediate trend for the pound will remain to the downside and will not be able to follow the pace of the euro, while the technical indicators show that there is still an opportunity for further upside movement where today's U.S. jobs might have the final word in that.

The trading range is among the key resistance level at 1.9730 and the key support level at 1.9460

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

Support: 1.9555, 1.9536, 1.9508, 1.9491, 1.9476
Resistance: 1.9581, 1.9610, 1.9625, 1.9660, 1.9684

Recommendation: Buy on the break of 1.9600 till 1.9700 and a reverse stop below 1.9575.

JPY

The dollar against the Japanese yen reached yesterday to a very critical resistance at 106.40 which represents after the fall of 105.80 the last resort for the medium term downtrend, and the next strong resistance will be at 108.80 as the pair will be in a neutral area till there, today if this level shall stand, it might create an opportunity for some profit taking, maybe with some help from the job's report, and if breached we will see a break from there and then it will stand as a support for pair.

The trading range for today is among the key resistance level at 106.45 and the key support level at 104.90

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

Support: 106.05, 105.81, 105.72, 105.55, 105.20
Resistance: 106.32, 106.45, 106.67, 107.20, 107.45

Recommendation: Sell the pair below 106.35 with a target at 105.80 and a stop loss above 106.50

CHF

The dollar against the Swiss frank is still in its neutral territory pointing lower as it remains below 1.0450, but if that bottom of the triangle at 1.0350 gets breached new targets will be initiated around the parity level, yet the technical indicators are still neutral so any movement today will be on the jobs' report merits.

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: 1.0390, 1.0360, 1.0345, 1.0320, 1.0280
Resistance: 1.0420, 1.0452, 1.0487, 1.0520, 1.0535

CAD

The pair has reached to an important level above 1.0200and as long as it did not breach that level a profit taking might happen as the technical indicators show that the pair is loaded with buy orders and it has to make a bit of a correction, this move might extend towards the parity level.

The trading range is among the key resistance level at 1.0220 and the key support level at 1.0000.

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

Support: 1.0180, 1.0155, 1.0123, 1.0090, 1.0072
Resistance: 1.0220, 1.0243, 1.0269, 1.0310, 1.0340

Recommendation: Sell the pair below 1.0210 with a target at 1.0120 and a stop loss above 1.0245.

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