Daily Technical Analysis for EURUSD as at 23rd October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD broke through and closed well above the key 1.3710 resistance level. This breach now puts into play a possible move to the 1.4250 area being last obvious isolated high on both daily and weekly charts. In the short term the next obvious resistance level is the 1.3835 being a prior weekly isolated low. A further advance will of course take EURUSD into a broad area of resistance that coincides with the 2011 highs.
This morning EURUSD has opened negatively which is not a surprise as the price action is now very extended from its averages. We are monitoring the possibility of further corrective down to sideways movement however a break above yesterdays high could potentially indicate a further strong appreciation in EURUSD.
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.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities. However after such a strong impulse move there is further potential for EURUSD to continue to trade above daily and minor 4 and 1 hour isolated high pivots.
Scenario 2
Alternatively as the price action is extended from the averages there may be a possibility of short scalping opportunities with potential targets being the 1.3710 level and then the averages.
Daily Technical Analysis for GBPUSD as at 23rd October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday GBPUSD traded higher but failed to close above trend line resistance. This morning GBPUSD attempted to continue with the upward momentum but ultimately this move above the trend line resistance also failed. Subsequently GBPUSD has traded lower. However this retracement has thus far not reversed all of yesterday gains with the pullback pairing some 60% of the up thrust if taken from the bottom of yesterday’s lows. This of course is a potential obvious Fibonacci support level.
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 23rd October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDCHF broke down aggressively from the 0.9020 support. This morning the 0.8930 support level is in play as the price action hovers above this area.
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 USDCHF could potentially bounce off the 0.8930 area and trade back up to 0.9020.
Daily Technical Analysis for USDJPY as at 23rd October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDJPY continued to hug the moving averages whilst trading beneath Fibonacci resistance. This morning USDJPY has traded strongly down from this area and is approaching the bottom of the converging triangle.
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.