Daily Technical Analysis for EURUSD as at 25th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD traded higher and away from the now broken key 1.3710 resistance level. This morning we are seeing some initial buying pressure with EURUSD printing a new high. We are monitoring the price action so as to see if EURUSD can continue its advance.
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 25th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday GBPUSD closed higher but within the range of the prior two sessions. This morning so far the price action is similar to yesterdays. It would appear that GBPUSD is being squeezed on all sides by resistance and support areas. The questions are
1. Will GBPUSD break resistance or support first?
2. Once broken can this currency pair maintain the move.
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 25th October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Having breached both 0.9020 and 0.8930 support levels yesterday USDCHF printed a bullish hammer candle. As the price action is extended from the averages there is a possibility that USDCHF experiences an up to sideways correction.
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 25th October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDJPY experienced a brief pause as it printed a narrow range day. However this morning USDJPY has continued with it’s down trend with the price action having touched the converging triangle support. We are now monitoring the price action to see if USDJPY will either bounce off this level or break lower.
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.