Daily Technical Analysis for EURUSD as at 21st October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
On Friday EURUSD traded at the highs of the latest up leg in what was a very quiet London and New York session which failed to break the key 1.3710 resistance level. This morning’s open has thus far been extremely quiet.
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 the last up move has invalidated the bearish Head and Shoulders top scenario.
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 21st October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
On Friday GBPUSD experience a very quiet day as it continued to find resistance off trend lines that where identified previously. This morning this theme has continued with GBPUSD opening unchanged.
On a swing bases GBPUSD continues to trend positively on both daily and weekly time frames following the bounce off both trend line and the 34 period moving averages support. If GBPUSD can continue with its upward bias 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 21st October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Following USDCHF rapid collapse off moving average resistance further downward momentum was halted at the 0.9020 resistance level. On Friday USDCHF experienced a quiet session which saw this pair fail to make a substantial move beneath the 0.09020 level. This morning USDCHF is making a moderate bounce off this support area however it is too early in the session to predict if this is an attempt for USDCHF to print a higher low swing.
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 21st October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Thursday’s price action saw USDJPY reject both Fibonacci and moving average resistance and in the process traded lower from these levels. However the price action on Friday was muted and this theme has so far continued into this morning’s session.
In terms of the bigger picture 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.