Major Currencies

euro
The euro reached the key support level for the downside channel which resides alongside 1.382% correctional level for the last upside move that extend between 11-22, in September. We can see that the support level is getting weaker and at the same time momentum indicators are heavily oversold and for that we expect an upside correction while the problem is finding solid support that might support the upside move while it might be 161.8% level at 1.3335 yet we recommend high caution applied in trading. The trading range for today might extend among the resistance level at 1.3805 and the support level at 1.3555; while the general trend remains to the downside targeting 1.3555 and 1.3420 as long as 1.5080 remains intact.

gbp
We are still within the downside channel where its main resistance resides at 1.7635 and continued trading below this level set further decline and attempts to breach 1.7475 once more which is the only support level that can provide sterling with upside momentum over intra and short term basis. The trading range for today might extend among the resistance level at 1.7740 and the support level at 1.7280; while the general trend remains to the downside targeting 1.7280 and 1.6965 as long as 1.9400 remains intact.

jpy
The pair raced to technical pattern's targets pointed before at 101.50 which is 61.8% correction for that upside wave that started in March yet the pair extended to reach near 100 levels. The pair acquired 61.8% as we said and full targets now reside at 98.55 yet in many cases the pair settles for the 61.8% of the full target in similar patterns; yet continued trading below the Neckline for the pattern at 104.60 we do not expect the pair to revert positive. The trading range for today might extend among the resistance level at 106.20 and the support level at 98.55; while the general trend remains to the downside targeting 100.20 and 98.55 as long as 104.60 remains intact.

chf
A breakthrough was seen on 1.1410-20 levels yet the pair is still trading around those levels and for that we can not confirm the breach; though we still see the heading to the upside yet momentum indicators are heavily overbought over four-hour basis and for that we see high volatility today with tendency to a downside correction. The correction will be confirmed with trading below 1.1410 yet we do not see the decline capable of altering the upside headings over the medium term while 1.1370 creates solid support for the pair. The trading range for today might extend among the resistance level at 1.1690 and the support level at 1.1235; while the general trend remains to the upside targeting 1.1455 and 1.1685 as long as 1.0570 remains intact.

The strong upside wave that lead us to set the second target which is the key resistance for the current upside wave which resides at 1.0975 and the second target at 1.1000 we can now see a historical resistance at 1.1045, while at the same time the pair did not set any Fibonacci level for the downside that started on 20-01-2002; while now we should assess closings at 1.1045 as a couple of days closings above the level is capable to create a new steep upside wave. Today we see heavy buying saturation in addition to slight divergence on direction indicators and for that we expect a downside correction that is not to affect the medium term upside trend. The 1.0870 which are the key support levels for the intraday upside channel and continued trading above those levels will resume the upside after easing some buying pressures. The trading range for today might extend among the resistance level at 1.1170 and the support level at 1.0775; while the general trend remains to the upside targeting 1.1285 and 1.1760 as long as 1.0350 remains intact.