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Major Currencies Morning Report 02-June-2011

The Euro consolidated between the resistance level at 1.4466, which push the pair to the downside yesterday, and the SMA 50 which keep the upside wave on intraday


EUR

Stochastic index continue showing negative signs that affect rising. In general, the stability above the SMA 50 and the breached resistance- shown in red on the chart- are factors make us expect an upside move for today but it requires breaching the level of 1.4455 and the stability above 1.4285.

Trading range for today is among the major support 1.4235 and the major resistance 1.4545.

The short term trend is to the upside with a steady daily closing above 1.2795 targeting 1.5135



Support 1.4335 1.4285 1.4235 1.4200 1.4150

Resistance 1.4395 1.4455 1.4455 1.4545 1.4585

Recommendation Recommendation based on the charts and explanations above we recommend buying the pair with hourly closing above 1.4455 targeting 1.4650 and stop losses below 1.4335 might be appropriate for today.


Great British Pound (GBP)



GBP

The pair declined significantly due to the resistance of minor bearish channel that control trading within the main bullish channel as it is shown on the chart. Stochastic index is showing oversold signs which may put the pair back on the upside trend, while the SMA 50 faces it by supporting the downside trend which affected by the mentioned bearish channel. Therefore, we prefer neutrality for today until we have more accurate signs for the trend.

The trading range for today is between the major support 1.6125 and the major resistance 1.6520.

The short term trend is to the upside with a steady daily closing above 1.5315 targeting 1.7000



Support 1.6260 1.6210 1.6125 1.6045 1.6000

Resistance 1.6365 1.6415 1.6510 1.6600 1.6650

Recommendation Recommendation based on the charts and explanations above we recommend stay and monitor the daily closing until we get an accurate signs.


Japanese Yen (JPY)


JPY

The SMA 50 is showing a strong resistance against the pair and pushes it to the downside to trade the pair around the support of a minor bullish channel which represents a continuous flag pattern. Accordingly, we expect a downside move for today but it requires breaching the downside pattern’s support at 80.75, which will open the door to achieve the main targets at 79.80 with monitoring the pair around these levels, the stability below 81.60 will keep our expectations valid.

The trading range for today is among the major support 79.00 and the major resistance 82.50.

The short term trend is to the downside with stability below 89.35 targeting 77.70



Support 80.75 79.80 79.00 78.40 78.00

Resistance 81.60 82.50 83.10 83.50 83.90

Recommendation Based on the charts and explanations above we recommend selling the pair with breaching the level of 80.75 targeting 79.00 and stop losses below 81.60 might be appropriate for today.


Swiss Franc (CHF)



CHF

The pair continue it trading tending to the downside within the minor bearish channel that regulate the pair trading from the resistance of the main bullish channel to its support. Therefore, we expect to continue an intraday bearishness for today and targeting 0.8265. we expect that the positivity of stochastic index may cause some volatility. The stability below 0.8550 is important to keep our expectations valid.

The trading range for today is among the major support 0.8265 and the major resistance 0.8550.

The short term trend is to the downside with a steady daily closing below 1.0330 targeting 0.8000



Support 0.8425 0.8360 0.8300 0.8265 0.8190

Resistance 0.8490 0.8550 0.8585 0.8655 0.8720

Recommendation Based on the charts and explanations above we recommend selling the pair around 0.8490 and take profits at two stages first at 0.8360 then 0.8265 and stop losses above 0.8585 might be appropriate for today.


Canadian Dollar (CAD)



CAD

The pair rebounded to the upside after it failed to breach the mentioned retest level as it is shown on the chart, and the SMA 50 is supporting the pair also. The trading are fluctuated between retesting the breached rising wedge support at 0.9845 and the breached resistance of the bullish channel at 0.9670, which make us need more accurate signs for the trend by monitoring the pair around the mentioned levels.

The trading range for today is among the major support 0.9565 and the major resistance 0.9970

The short term trend is to the downside with a steady level at 1.0665 targeting 0.9000



Support 0.9770 0.9710 0.9670 0.9645 0.9565

Resistance 0.9845 0.9915 0.9970 1.0000 1.0055

Recommendation Recommendation based on the charts and explanations above we recommend stay and monitor the pair around the mentioned levels to get an accurate signs.





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