Daily Technical Analysis for EURUSD as at 6th November 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD breached the high of the two day range only for the price action to trade back and close within this range. This morning EURUSD has open up slightly positive. We are monitoring the market action for signs that EURUSD will succeed with the upside breakout or alternatively this pair trades back to trend line support.
In terms of the bigger picture following the breach of the 16th October prior isolated low has changed the daily trend from up to down.
However the weekly time frame does continue to point up and the RSI is forming a positive divergence. As EURUSD has found support at the upward sloping trend line this and the other bullish factors mention could give the market the excuse it needs to trade higher. However unless the price action can take out a previous high the swing bias on the daily time frame will remain negative.
Upside targets 1.3710, 1.3835 and 1.4250 all being previous isolated highs. Down side targets being the 6th September prior isolated low at 1.3104.
Scenario 1
As the dominant daily trend is down retracements into resistance could be viewed as selling opportunities.
Scenario 2
Alternatively as EURUSD is trading around trend line support there is a possibility of a corrective bounce.
Daily Technical Analysis for GBPUSD as at 7th November 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday GBPUSD breached and closed above 8 period moving averages. This positivity has continued into today’s session with the price action trading above the 34 period moving averages.
On a daily 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 that GBPUSD does note trade beneath the 16th October isolated low. That the RSI is diverging positively does give the long side some encouragement but it should be noted that the averages have crossed negatively for the first time since July 2013.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities.
Scenario 2
Alternatively as GBPUSD is trading within the 8/34 SMA resistance area there is a possibility that the price action rejects this level and trades back down to 1.5893 being a prior isolated low that was printed on 16th October.
Daily Technical Analysis for USDCHF as at 7th November 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
The price action continues to trade under trend line resistance and this morning has opened up within a four day range.
On a basis swing bases the trend continues to be negative. Furthermore USDCHF has now traded into Fibonacci resistance and a negative RSI divergence is forming. Therefore there is potential for negative rotation at these levels and a resumption of the down trend.
The support and resistance areas on a weekly swing pivot basis being 0.9020 0.8930, 0.8570 and 0.9200.
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 trend line resistance could see could see USDCHF trade towards the 16th October isolated high.
Daily Technical Analysis for USDJPY as at 7th November 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDJPY found support at the 8 period moving averages. This morning the price action continues to hug this average. However the Fibonacci resistance area continues to stall USDJPY upward momentum.
We have noticed that USDJPY experiencing a contraction of daily ranges which could be a sign that energy is building for a potential large break of the converging triangle formation.
The trend on the daily time frame is pointing down but USDJPY has printed a higher high and the weekly time frame continues to be positive. These factors could potentially indicate that the break will be to the upside. Furthermore if USDJPY can breach 17th October isolated high will add further weight to the case for an upside break.
However the overhead Fibonacci area that has offered good resistance will have to be overcome to allow for further upside with a failure to trade higher could see USDJPY trade back to trend line support.
Scenario 1
As the dominant daily trend is down retracements into resistance could be viewed as selling opportunities
Scenario 2
Alternatively the printing of a higher lower and with the price action now trading around the averages could prompt USDJPY to trade up to the 17th October isolated high.
Daily Technical Analysis for Gold as at 7th November 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday Gold continued to trade within a tight range and this price action has continued into this morning’s session. We are monitoring breaks of this range with key levels being 1327.00 and 1305.50.
On a daily both a daily and weekly swing basis Gold is trading negatively.
Scenario 1
As the dominant daily trend is down corrective sideways to up movements could potentially be viewed as selling opportunities.
Scenario 2
Alternatively long scalping opportunities might arise as the price action become extended from the averages.
Daily Technical Analysis for Oil (WTI) as at 7th November 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday Oil rallied up to the 8 period moving averages. Approaches to this average can offer opportunities as a value area where shorts can potentially be added. This morning Oil has opened negatively. We are monitoring the price action for signs that the down trend will resume.
The trend on a daily swing bias is short with the averages and the RSI confirming this direction. However as the weekly time frame remains positive the below congestion area might prove to be a strong support area.
Scenario 1
As the dominant daily trend is down retracements up to resistance such as the averages areas could possibly be viewed as selling opportunities.
Scenario 2
Alternatively one could possibly take scalp longs up to the averages.