Daily Technical Analysis for EURUSD as at 18th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD experienced a stellar up day as it broke up from the 1.3470 and 8 period moving averages support level. This morning EURUSD is attempting to trade up to the 1.3710 resistance level which is a previous weekly pivot high.
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. Furthermore yesterday’s move has invalidated the bearish Head and Shoulders top.
However as EURUSD is now greatly extended from the averages it would not be a surprise if the price action experiences corrective down to sideways movement.
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 extended from the averages there may be a possibility of short scalping opportunities being offered down to these averages.
Daily Technical Analysis for GBPUSD as at 18th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Much like EURUSD yesterday GBPUSD also had a very strong up day and traded a much greater range than usual as it broke up from its averages and trend line support. This morning GBPUSD continues to trade higher albeit at a slower pace which is most probably not unusual after such a strong previous day.
On a swing bases GBPUSD continues to trend positively on both daily and weekly time frames and has now bounced off trend line support and the 34 period moving averages following its move down off multiyear trend line resistance. If GBPUSD can continue with its up move there is a possibility that the 1.6400 area is challenged. This level coincides with a prior weekly pivot high.
The long bias is reinforced by the RSI and the moving averages confirming the swing direction however as the price action is now extended from the averages the possibility of down to sideways corrective action should not be discounted.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities.
Scenario 2
Alternatively as the price action is extended from the averages there is a possibility of corrective down to sideways action down to the averages.
Daily Technical Analysis for USDCHF as at 18th October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDCHF continued with it’s downwards movement that was seen in the open as it rapidly collapsed off the resistance area that was offered by the averages. The down move was stopped at the 0.9020 area which was identified in yesterdays analysis.
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 18th October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
As posted yesterday 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.