Daily Technical Analysis for EURUSD as at 29th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD traded within the previous 2 days range as the price action consolidated at the highs of this strong up thrust. This morning we are seeing EURUSD trade back to the 8 period moving averages which is a potential value area where long positions could be entered. If this current level fails to hold support then the next value area is the 1.3710 level being a prior broken significant resistance level.
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.
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.
Daily Technical Analysis for GBPUSD as at 29th October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday GBPUSD closed beneath both the 8 period moving averages and trend line support. This morning GBPUSD attempted to breach the 34 period moving averages only for support to come into the market and push the price action higher. I have now drawn a secondary trend line which connects most significant pivot points.
On a swing bases GBPUSD continues to trend positively on both daily and weekly time frames. However the current price action would appear to be attempting to print a lower high. Therefore it is important for the health of the current uptrend for the price action to not trade beneath the 16th October isolated low. Furthermore if GBPUSD can trade above the isolated highs of the 23rd and 1st October then the 1.6400 target level that coincides with a prior weekly pivot high will come back into play.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities.
Scenario 2
Alternatively a breach of trend line support could see GBPUSD trade down to 1.5893 being a prior isolated low that was printed on 16th October.
Daily Technical Analysis for USDCHF as at 29th October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
USDCHF has now printed two bullish hammers at the 0.8930 level. Yesterday USDCHF was propelled higher from this level and into the 8 period moving averages. This morning USDCHF is trading slightly higher. As the price action is now trading at the 8 period moving average value areas we are monitoring developments for signs of negative rotation that will push USDCHF back to the 0.8930 level.
On a swing bases the trend continues to be negative with support areas on a weekly swing pivot basis being 0.8930 and 0.8570 areas.
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 breach of the 8 period moving averages could see USDCHF trade up to the 34 period moving averages.
Daily Technical Analysis for USDJPY as at 29th October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Following the bounce off trend line support yesterday USDJPY traded higher and into the 8 period moving averages. This morning the price action opened negatively at this level. This is significant as the 8 period moving averages could be considered a good area of both support and resistance. With this in mind the question is can USDJPY break down with significant force so as to validate to the short side the large converging triangle that has been forming since the May high or will triangle bottom act once again as strong support.
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.