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Major Currencies Morning Report 31-May-2011

The EUR|USD consolidated on a retest  of the previoulsy breached minor resistance shown on chart below, where the 50 SMA is also supporting  the resistance level.
eur31_05_2011



Stochastic is  overbought which may cause some oscillation and minor correctional downside move , but in general, we expect that the current intraday upside move will continue for today after confirming the breach of the mentioned resistance at 1.4235 which turned  into support now , where the pair trading should stabilize above this level in order to continue the upside move.


Trading range for today is among the major support 1.4235 and major resistance 1.4650.

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



Support 1.4325 1.4280 1.4235 1.4200 1.4150

Resistance 1.4455 1.4500 1.4545 1.4585 1.4640

Recommendation Recommendation based on the charts and explanations above we recommend buying the pair around 1.4355 targeting 1.4455 and stop loss below 1.4235 might be appropriate for today.
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Great British Pound (GBP)


eur31_05_2011

The pair rose to break the horizontal resistance level at 1.6510, as it represents a neckline for a bullish pattern that can push the pair to target 1.6740 and then 1.6860. we expect intraday bullishness for today but the pair should stabilize above 1.6415 to keep our expectations valid.

Trading range for today is among the major support 1.6415 and major resistance 1.6740.

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



Support 1.6510 1.6420 1.6340 1.6260 1.6210

Resistance 1.6600 1.6650 1.6700 1.6740 1.6800

Recommendation Recommendation based on the charts and explanations above we recommend buying the pair around 1.6510 targeting 1.6655 and stop loss below 1.6415 might be appropriate for today.

Previous
Japanese Yen (JPY)


eur31_05_2011

The 23.6% Fibonacci retracement is forming a strong support level for the pair. while the 50 SMA is forming a strong resistance that is  preventing  the pair from achieving more upside correction. due to these mixed signals , our expectations remain neutral for today until we monitor the pair around these  sensitive levels, the 80.75 support and 81.65 resistance .

Trading range for today is among the major support 79.95 and major resistance 82.50.

The short term trend is to the downside with a steady daily closing above 89.35 targeting 77.70.



Support 80.75 79.95 79.50 79.00 78.40

Resistance 81.30 81.65 82.50 83.00 83.50

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

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Swiss Franc (CHF)


eur31_05_2011

The pair stabilized below the pivotal support at 0.8550, where stochastic is showing bearish signs that is  supporting the pair to keep trading within the main bearish channel. We expect intraday downside move today heading to the levels around 0.8300, where the breach of 0.8550 may delay our expectations.


Trading range for today is among the major support 0.8300 and major resistance 0.8655.

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



Support 0.8485 0.8425 0.8360 0.8300 0.8250

Resistance 0.8550 0.8600 0.8655 0.8720 0.8810

Recommendation Recommendation based on the charts and explanations above we recommend selling the pair around 0.8550 and profit taking at 0.8425 then 0.8300 and stop loss above 0.8650 might be appropriate for today.

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Canadian Dollar (CAD)


eur31_05_2011

The effect of the breached rising wedge pattern has started by pushing the pair negatively, where stochastic is showing a bearish signs which adds more support for the 61.8 Fibonacci retracement where it couldn’t breach this level in the previous attempts . We expect more intraday downside move for today where the technical targets of the pattern are at 0.9690 support level, which is  resistance level  of the breached descending channel that turned into support now. The pair should stabilize below 0.9805- 0.9845 to keep our expectations valid.


Trading range for today is among the major support 0.9500 and major resistance 0.9845.

The short term trend is to the downside with a steady daily closing above 1.0665 targeting 0.9000



Support 0.9690 0.9645 0.9565 0.9500 0.9445

Resistance 0.9770 0.9805 0.9845 0.9915 0.9970

Recommendation Based on the charts and explanations above we recommend selling the pair with hourly closing below 0.9690 targeting 0.9565 and stop losses above 0.9770 might be appropriate for today.


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