Technical Analysis for Major Currencies

EURO

The Euro versus Dollar pair was able to maintain levels yesterday below the breached support level to alter the short term trend to the downside where targets are now at 1.3320. As a result, we expect the pair to pressure the 1.3800 level to the downside to reach our targets as far as 1.3980 remains intact.

The trading range for today is among the key support at 1.3585 and the key resistance at 1.4180

The general trend is to the downside as far as 1.4710 remains intact with targets at 1.2120

Support: 1.3850, 1.3800, 1.3745, 1.3700, 1.3640
Resistance: 1.3895, 1.3955, 1.4015, 1.4065, 1.4105

Recommendation: According to our analysis, sell the pair below 1.3800 with targets at 1.3700 and 1.3640 and stop loss with four hour closing above 1.3895

GBP

The Cable rebounded to the upside yesterday after reaching the support level pointed out yesterday yet failed to breach the resistance level at 1.6075. The continuous downside pressure and yesterday's closing below the above mentioned resistance level may change the trend to the downside on the short term to target the key support for the channel at 1.5280. Confirming the direction to this target will be the breach of the 1.5820 support level. The short term trend is to the downside as far as 1.6075 remains intact.

The trading range for today is among the key support at 1.5715 and the key resistance at 1.6215

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.6660

Support: 1.5920, 1.5870, 1.5820, 1.5785, 1.5715
Resistance: 1.6075, 1.6135, 1.6200, 1.6285, 1.6360

Recommendation: According to our analysis, sell the pair below 1.6075 with targets at 1.5920 and stop loss with four hour closing above 1.6180

JPY

The USD/JPY pair continued to incline yesterday within a minor ascending channel that helped breach key resistances for the short term confirming the incline on the short term as far as trading remains above 97.30. We expect the pair to build a solid base at 97.80 before rebounding back to the upside on the intraday term targeting 99.50 where a breakout will take the pair towards 101.50.

The trading range for today is among the key support at 95.30 and the key resistance at 100.70

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60

Support: 97.80, 97.30, 96.50 ,95.90, 95.35
Resistance: 98.85, 99.50, 100.25, 100.65, 101.00

Recommendation: According to our analysis, buy the pair above 97.80 with targets at 99.50 and stop loss with four hour closing below 97.10

CHF

The Dollar versus Swissy pair attempted to return within yesterday's breached downside channel. A close above the support level currently at 1.0870 will open the way for further inclines towards 1.1300 after confirming the breakout of the critical resistance at 1.0955. This incline remains as far as 1.0870 remains intact.

The trading range for today is among the key support at 1.0745 and the key resistance at 1.1165

The general trend is to the upside as far as 1.0570 remains intact with targets at 1.2245

Support: 1.0870, 1.0825, 1.0785, 1.0745, 1.0665
Resistance: 1.0955, 1.1020, 1.1080, 1.1100, 1.1165

Recommendation: According to our analysis, buy the pair above 1.0955 with targets at 1.1100 and stop loss with four hour closing below 1.0870

CAD

The Dollar versus Loonie pair was able to reach our downside targets yesterday at 1.1100 before rebounding back to the upside to trade near the key resistance for the downside channel at 1.1200. We expect the pair is to continue attempting to breach this level supported by technical indicators which may be witnessed on the intraday within the minor ascending channel seen in the above image with targets at 1.1335.

The trading range for today is among the key support at 1.0965 and the key resistance at 1.1395

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

Support: 1.1135, 1.1070, 1.1015, 1.0970, 1.0905
Resistance: 1.1200, 1.1260, 1.1335, 1.1370, 1.1415

Recommendation: According to our analysis, buy the pair above 1.1200 with targets at 1.1335 and stop loss with four hour closing below 1.1115

Fundamental Analysis
Not a lot to go over tonight, so I'll keep it short and sweet. Pretty much all of our biases and outlooks remain the same as they were yesterday (see 06-08-2009.swf ). The decent bounces we've seen on EUR/USD and GBP/USD may extend a bit short term here, but ultimately they will have a more dramatic turn lower likely sometime today (Tuesday) or Wednesday. As I told the Diamonds room earlier on Monday, selling the EUR/USD somewhere in the 1.3900 to 1.4000 range and selling the GBP/USD in the 1.6044 to 1.6242 range makes a lot of sense from both a position trade standpoint, and even for some more medium term swing trades. So far those resistance ranges have worked out well so I'd like to stick with them. Stocks continue to be volatile and periodically heavy, but have yet to break that 923 key support that will serve as confirmation of further downside. Once 923 breaks, feel free to load up on some short or in my case, add to the early shorts I'm already in. Until 923 breaks though, be prepared to deal with the possibility of short term new highs on stocks as we continue to top out. There was no major news on Monday, and none set for Tuesday, so we'll have more to talk about tomorrow night.