Daily Technical Analysis for EURUSD as at 17th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD experienced a great deal of news related volatility before finally closing slightly higher and in the process printing a bullish hammer candle.
There appears to be on the bases of the last two session’s strong support for EURUSD at the 1.3470 area. This morning EURUSD is trading higher off yesterday’s positive close and is currently broken back above the 8 period moving averages which is our preferred indicator used for the purposes of dynamic support and resistance on the daily time frame.
In terms of the daily trend the swing bias continues to be positive and this direction is being confirmed on the weekly time frame. Furthermore the averages layered positively and the RSI is in gear with the trend. We are monitoring a possible move to 1.3710 being a previous weekly pivot high.
However it would appear the EURUSD might be trying to print a bearish Head and Shoulders top. A break lower could see EURUSD trade down to trend line support.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities with the current long term target being the 1.3710 resistance level.
Scenario 2
Alternatively as the price action is attempting to print a Head and Shoulders top a break of the neck line could see EURUSD trade substantially lower.
Daily Technical Analysis for GBPUSD as at 17th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday GBPUSD experienced a great deal of volatility and printed a relative wide range in what ended as a negative session. This morning GBPUSD has opened positively and paired most of yesterday’s losses.
On a swing bases GBPUSD continues to trend positively on both daily and weekly time frames but has traded down off multiyear trend line resistance. This moved has followed through and breached the uptrend line support. However further support has been found at the 34 period moving averages where GBPUSD has bounced. If GBPUSD can hold this level there is potential for a retest of resistance and the 1.6400 area which coincides with a prior weekly pivot high.
The long bias is reinforced by the RSI and the moving averages confirming the swing direction however a break of the 34 period moving averages could see GBPUSD trade down to 1.5700 area which coincides with the 1.5716 level being a previous swing pivot high of the 21st August 2013.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities.
Scenario 2
Alternatively a breach of the 34 period moving averages could see GBPUSD trade down the 1.5700 being a previous swing pivot high of the 21st August 2013.
Daily Technical Analysis for USDCHF as at 17th October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday once again USDCHF attempted to breach the 34 period moving averages but failed in its attempt to trade above resistance. This failure to breach resistance has followed into today’s session with USDCHF trading lower and now breaching the 8 period moving averages. This move might be seen as a possible resumption of the down trend.
On a swing bases the trend continues to be negative with support areas being 0.9020 and 0.8930.
Scenario 1
As the dominant daily trend is down corrective pullbacks could possibly offer selling opportunities with retracements back to the averages, the prior pivot low and broken support being value areas where shorts could potentially be added.
Scenario 2
Alternatively a failure to hold beneath the 8 period moving averages could see USDCHF trade back up to the 34 period moving averages.
Daily Technical Analysis for USDJPY as at 17th October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
USDJPY continues to trade within a converging triangle formation but is now retracing and trading higher following the breach of the 96.80 level which coincided with a prior swing low. This breach of this pivot has effectively changed the trend to short on a swing basis.
However trend change to down maybe limited due to the strength of the uptrend’s that can be found in both Monthly and Weekly time frames. Therefore breaks of the converging triangle formation should be treated with care and possible entered after further confirmation is received.
Scenario 1
As the dominant daily trend is down retracements into resistance could be viewed as selling opportunities
Scenario 2
Alternatively a move above the converging triangle opens up a possibility of buying USDJPY with the view of participating in a large linear uptrend.