Technical Analysis for Crosses

EUR/JPY

As seen in the above picture, the pair was able to successfully close above the key resistance for the sideways channel at 126.66 yet is currently facing difficulties in breaching the minor resistance at 127.12. As the EUR/JPY pair is being overbought according to momentum indicators, we expect to see a slight decline in correctional movements once again to the key resistance mentioned above before targeting our initial target at 127.44 and 129.30 respectively.

Support 126.66 126.29 125.81 125.20 124.67
Resistance 127.12 127.44 127.91 128.32 128.87
Recommendation ...

GBP/JPY

Tight consolidation seems to continue to dominate the GBP/JPY pair's movements as it still fails to gather enough bullish momentum to breach the 133.70 level. On the other hand, the 133.20 is providing a good support as it was able to limit further losses by the pair where we expect trading to remain within these levels as seen on the technical indicators yet with very slight possibility to the upside.

Support 133.20 132.74 132.54 132.00 131.79

Resistance 133.70 134.07 134.53 134.90 135.32
Recommendation ...

EUR/GBP

Gradually appreciating, the Euro versus the pound continued to fluctuate to the upside to currently trade at the 0.9515 level yet we see two strong resistance levels at 0.925 and 0.9539 that helped reverse the pair back to the downside. It seems that the pair is targeting to reach levels above the all time high that was recorded on 18-12-2008 at 0.9555 but before doing that, we might witness a correction to the downside to 0.9473 at the very least, as seen on the RSI and Stochastic indicators on the daily charts, before rebounding back to the upside with enough bullish momentum.

Support 0.9496 0.9473 0.9462 0.9448 0.9433

Resistance 0.9525 0.9539 0.9554 0.9561 0.9576
Recommendation ...

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Technical Analysis for Major Currencies

GBP

We currently see that the pound was able to build a solid base above 1.4700 without breaching it to the downside resulting in the bearish wave to weaken and enter a sideways pattern as seen on the Bollinger bands. We expect trading to remain to the upside on the short term until 1.4835 with high volatility in these upcoming days. The trading range for today is among the key support at 1.4700 and the key resistance at 1.4835 The general trend is to the downside as far as 1.9400 remains intact with targets at 1.4435 and 1.4095

Support 1.4770 1.4760 1.4740 1.4685 1.4660
Resistance 1.4815 1.4835 1.4885 1.4965 1.5030
Recommendation ...

JPY

The pair is still trading within the descending channel on the medium to long term yet has initiated a bullish channel on the short term that is coming to an end resulting in a rebound to the downside to target 87.60 at the very least. We expect trading for today to remain calm due to holidays in the markets. The trading range for today is among the key support at 88.80 and the key resistance at 92.75 The general trend is to the downside as far as 102.10 remains intact with targets at 84.95 and 82.60

Support 90.15 90.00 89.70 89.55 89.20
Resistance 90.60 90.90 91.30 91.65 92.10
Recommendation ...

CHF

After the large declines, the pair was able to reach 1.0700 once again which resulted in a neutral pattern. Here we are currently waiting to see a breach of this level as seen on different technical indicators. The trading range for today is among the key support at 1.0635 and the key resistance at 1.1140 The general trend is to the upside as far as 1.0570 remains intact with targets at 1.2570 and 1.2780

Support 1.0720 1.0700 1.0680 1.0632 1.0611
Resistance 1.0789 1.0820 1.0835 1.0869 1.0912
Recommendation ...

CAD

As we see, the pair was able to exit the downside channel and is currently trading within a sideways pattern instead. However, trading is narrowing between the 1.2220 and the 1.2120 levels where the pair is currently getting ready to breach one of the levels yet technical indicators are not favoring a specific one. It seems like the pair has tendency to the upside as trading remains of low volume until the end of the year. The trading range for today is among the key support at 1.2120 and the key resistance at 1.2220 The general trend is to the upside as far as 1.1780 remains intact with targets at 1.3305 and 1.3465

Support 1.2140 1.2095 1.2050 1.1980 1.1920
Resistance 1.2165 1.2225 1.2280 1.2295 1.2310..
Recommendation ...

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Markets are Calm

The markets were closed yesterday as a result of the Christmas Day Holiday as currently trading is stable as major economies are closed due to the Holiday yet the Asian markets are running. The dollar slid in the markets as investors continue to fear the deepening of the recession in the U.S. economy while spending was pared during the holidays adding further to the misery they currently face.

Although the European markets are closed yet we see that the euro is rising based on the dollars weakness. The pair trades at 1.4051 while recording a high of 1.4072 and a low of 1.3988. Using the MACD indicator on a four-hour chart supported by 5 and 20 days we see that the direction is to the upside while on the one-hour chart the momentum indicators show us that the pair is trading in an overbought area and that there is strong momentum in the markets.

The pound like the euro is rising against the federal currency while the Bank of England is closed as a result of Boxing Day Holiday. The GBP/USD is currently traded at 1.4768 while recording a high of 1.4794 and a low of 1.4715. For the pair we see a support at 1.4714 and a resistance at 1.4795.

As the Asian markets are open we see that the Japanese economy released its industrial production for the month of November coming in at -8.1 percent from the prior month of -3.1%, which marked the quickest rate in 55 years. The released data caused the yen in the markets to become pressured as the USD/JPY currently trade at 90.45 between the support of 90.21 and the resistance of 90.81 while recording a high of 90.84 and a low of 90.31.

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