Daily Technical Analysis for EURUSD as at 24th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Following the break of the key 1.3710 resistance level yesterday EURUSD struggle to make any further advances as it closed near the high of Tuesday’s candle. This morning we are seeing some initial buying pressure come into the market as EURUSD trades above Tuesday’s candle.
The breach of the 1.3710 level 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.
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 24th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday after initially trying to trade above trend line resistance GBPUSD lost upward moment and eventually traded beneath the previous day’s close. However by the end of the session GBPUSD did manage to pair some of its losses and closed above yesterdays open. This morning the positive close to yesterday’s session has continued with GBPUSD trading higher. We are monitoring GBPUSD for a possible further push above trend line resistance.
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 24th October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Following the breach of the 0.9020 level yesterday USDCHF also broke the 0.8930 support level.
On a swing bases the trend continues to be negative with the next support area on a weekly swing pivot basis being at the 0.8570 area.
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 is becoming increasing extended from the averages. This sets up the possibility of a corrective sideways to up corrective pullback.
Daily Technical Analysis for USDJPY as at 23rd October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDJPY traded down to the area near the bottom of converging triangle support. This morning we are seeing some initial strength at this level. We are awaiting the open of the London session for confirmation that USDJPY can trade higher.
In terms of the bigger picture USDJPY continues to trade within a converging triangle. However the breach of the 96.80 level coincides with a prior swing low. This breach of this pivot has effectively changed the trend to short on a swing basis.
However the 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 buying opportunities may arise at converging triangle trend line support.