Daily Technical Analysis 8th April 2014
Posted: Tue Apr 08, 2014 3:12 pmDaily Technical Analysis
8th April 2014
EURUSD
Summary
Monday EURUSD bounce higher off Fibonacci, trend line and the 1.3670 support level as the price action tested the 8 period moving averages.
Market overview
EURUSD continues to trade in a daily uptrend following the breach of the 1.3741 level being the 24th January swing high. This price action has put the daily time frame in gear with the positive weekly trend. However there has been a recent strong correction which has had the effect of creating a bearish head and shoulders pattern that is marked by the ellipse. The downside target for a completion of the head and shoulders pattern is in the region of the 1.3420 support level.
However as the weekly chart continues to have a positive bias I am monitoring signs for a base to build within the Fibonacci support area.
Focus on today
This morning EURUSD has opened quietly as it trades at the highs of the previous days range.
I am this morning monitoring the price action for a potential test of the 8 period daily moving average and move to the 34 period daily moving averages.
Alternatively if EURUSD fails to sustain higher prices there is a possibility tests trend line support.
GBPUSD
Summary
Monday GBPUSD bounced higher off the 1.6570 support level as the price action tested the moving averages.
Market overview
GBPUSD has traded above the 1.6668 being the prior isolated pivot high. This price activity has effectively changed the daily trend to up and puts it in line with the bullish weekly outlook.
More recently GBPUSD has experienced a strong downside correction and this has had the effect of creating a large converging triangle consolidation pattern. As GBPUSD has bow bounced off Fibonacci support and with the weekly trend pointing up I would expect this triangle pattern when it breaks to trade higher.
Focus on today
This morning GBPUSD has opened quietly as the price action trades at the highs of the previous days range.
I am today monitoring the price action for a test of the moving averages and move to up to the prior broken up trend line.
Alternatively if GBPUSD cannot sustain higher prices could see the price action test the 1.6570 support level.
USDJPY
Summary
Monday USDJPY continued to trade lower as the price action closed beneath the 8 period daily moving averages.
Market overview
The breach of the 102.83 level being the swing high of the 21st February has effectively changed the daily trend to up and therefore putting this time frame into gear with the bullish weekly time frame. The recent price action has seen a failure of the head and shoulders pattern which confirms the current upward momentum. However USDJPY is now experiencing the third day of a strong corrective pull back.
Focus on today
This morning USDJPY has opened bearishly with the price action breaching the 8 103.00 support level.
Today I am monitoring USDJPY for a close beneath the 103.00 support level and possible move to the 34 period daily moving averages.
Alternatively a failure to sustain lower prices could see USDJPY test the 103.40 resistance level.
USDCHF
Summary
Monday USDCHF experienced a strong downside correction off trend line resistance with the price action ultimatley closing just above the 8 period daily moving
Market overview
USDCHF continues to trade in a negative daily and weekly swing bias but the recent price action is beginning to take on a bullish feel to it. That the bullish inverse head and shoulders pattern has now broken to the upside I am now monitoring the possibility that this pattern reaches its upside target of 0.9080.
However daily and weekly bias does continue to be fixed to the downside therefore shorting rallies is still probably the most logical strategy to adopt. I am therefore monitoring the price action as it tests the downward sloping trend line and Fibonacci resistance for signs of a resumption of the down trend.
Focus on today
This morning USDCHF has opened quietly as it trades below Monday’s candle range.
Today I am monitoring the price action to potentially test of the 8 period daily moving averages and a move down to the 34 period daily moving averages.
Alternatively a failure to sustain lower prices could see USDCHF retest trend line resistance.
Gold
Summary
Monday Gold was moderatley bearish day as the price action closed lower but at the highs of Friday’s range.
Market overview
Gold continues to trade in a daily uptrend following the breach of the 1267.99 level being the swing high of the 10th December. The test of the large downward sloping trend line adds impetus to the current positive swing bias. Furthermore we have witnessed a large multi month double bottom forming which could indicate a large upside trend reversal is a possibility.
However the weekly time frame continues to point down. That the recent rejection of higher prices has come off a bounce from a downward sloping trend line and Fibonacci resistance level could indicate that the recent rally in Gold is part of a bigger cycle correction that ultimately sends Gold lower.
That Gold has experienced a strong daily time frame correction has pushed the price action into Fibonacci support and the ability or not of Fibonacci support to push Gold higher will give an indication if the bullish daily up trend or the bearish weekly down trend will win this current battle.
Focus on today
This morning Gold has opened strongly as the price action tests the 1310.00 resistance level and trades above Friday’s candle range.
Today I am monitoring the price action for Gold to trade up to the 1310.00 level and move to the 34 period daily moving averages.
Alternatively a failure to sustain higher prices could see Gold trade down to the 8 period moving averages.
Oil
Summary
Monday Oil traded within a volatile range around its averages.
Market overview
Oil continues to trade in a daily uptrend following the breach of the 100.72 level being the swing high of the 24th December. The daily and weekly times both have a positive bias. The recent price activity has seen the price action perform a text book move by trading down to Fibonacci support and from there bouncing higher. However Oil needs to hold above the 97.35 level so as to maintain its daily uptrend.
Focus on today
This morning Oil has opened bullishly as the price action trades above its averages.
Today I am monitoring the price action for a test 102.20 level being a prior swing high.
Alternatively a failure to sustain higher prices could see Oil trade back down to the 100.00 level.
AUDUSD
Summary
Monday AUDUSD experienced a moderatley down down as the price action traded within Friday’s candle range and closed above the 8 period daily moving averages.
Market overview
AUDUSD has been trading in a daily uptrend following the breach of the 0.9080 level being the swing high of the 18th February. However the weekly chart continues to trade in a weekly down trend with the price action now trading into the Fibonacci resistance area. That AUDUSD has formed a large inverse head and shoulders pattern it will be interesting to see if either this pattern trades to its upside target which comes in at the 0.9535 level or if Fibonacci resistance will offer a strong barrier to further upside momentum.
Focus on today
This morning AUDUSD has opened bullishly as the price action trades at the highs of Friday’s candle range.
I am this morning monitoring the price action for a potential move to the 61.8% Fibonacci resistance level.
Alternatively if AUDUSD fails to sustain higher prices there is a possibility that AUDUSD trades back down to the 8 period daily moving averages.
Dow30
Summary
Monday Dow30 continued to trade lower as the price action corrected down to the 34 period daily moving averages.
Market overview
The move above the 16,514 being the 7th March swing high has changed the daily trend to up. This has put the daily trend in gear with the weekly trend. However we have now seen a strong two day corrective down move that has take the price action back down to the 16,245 support level.
Focus on today
This morning Dow30 has opened quietly as the price action trades at the lows of the previous days candle range.
I am this morning monitoring the price action for a potential test of the 16,245 support level.
Alternatively if Dow30 fails to sustain lower prices there is a possibility that Dow30 tests the 8 period daily moving averages and then trades up to the 34 period daily moving averages.
8th April 2014
EURUSD
Summary
Monday EURUSD bounce higher off Fibonacci, trend line and the 1.3670 support level as the price action tested the 8 period moving averages.
Market overview
EURUSD continues to trade in a daily uptrend following the breach of the 1.3741 level being the 24th January swing high. This price action has put the daily time frame in gear with the positive weekly trend. However there has been a recent strong correction which has had the effect of creating a bearish head and shoulders pattern that is marked by the ellipse. The downside target for a completion of the head and shoulders pattern is in the region of the 1.3420 support level.
However as the weekly chart continues to have a positive bias I am monitoring signs for a base to build within the Fibonacci support area.
Focus on today
This morning EURUSD has opened quietly as it trades at the highs of the previous days range.
I am this morning monitoring the price action for a potential test of the 8 period daily moving average and move to the 34 period daily moving averages.
Alternatively if EURUSD fails to sustain higher prices there is a possibility tests trend line support.
GBPUSD
Summary
Monday GBPUSD bounced higher off the 1.6570 support level as the price action tested the moving averages.
Market overview
GBPUSD has traded above the 1.6668 being the prior isolated pivot high. This price activity has effectively changed the daily trend to up and puts it in line with the bullish weekly outlook.
More recently GBPUSD has experienced a strong downside correction and this has had the effect of creating a large converging triangle consolidation pattern. As GBPUSD has bow bounced off Fibonacci support and with the weekly trend pointing up I would expect this triangle pattern when it breaks to trade higher.
Focus on today
This morning GBPUSD has opened quietly as the price action trades at the highs of the previous days range.
I am today monitoring the price action for a test of the moving averages and move to up to the prior broken up trend line.
Alternatively if GBPUSD cannot sustain higher prices could see the price action test the 1.6570 support level.
USDJPY
Summary
Monday USDJPY continued to trade lower as the price action closed beneath the 8 period daily moving averages.
Market overview
The breach of the 102.83 level being the swing high of the 21st February has effectively changed the daily trend to up and therefore putting this time frame into gear with the bullish weekly time frame. The recent price action has seen a failure of the head and shoulders pattern which confirms the current upward momentum. However USDJPY is now experiencing the third day of a strong corrective pull back.
Focus on today
This morning USDJPY has opened bearishly with the price action breaching the 8 103.00 support level.
Today I am monitoring USDJPY for a close beneath the 103.00 support level and possible move to the 34 period daily moving averages.
Alternatively a failure to sustain lower prices could see USDJPY test the 103.40 resistance level.
USDCHF
Summary
Monday USDCHF experienced a strong downside correction off trend line resistance with the price action ultimatley closing just above the 8 period daily moving
Market overview
USDCHF continues to trade in a negative daily and weekly swing bias but the recent price action is beginning to take on a bullish feel to it. That the bullish inverse head and shoulders pattern has now broken to the upside I am now monitoring the possibility that this pattern reaches its upside target of 0.9080.
However daily and weekly bias does continue to be fixed to the downside therefore shorting rallies is still probably the most logical strategy to adopt. I am therefore monitoring the price action as it tests the downward sloping trend line and Fibonacci resistance for signs of a resumption of the down trend.
Focus on today
This morning USDCHF has opened quietly as it trades below Monday’s candle range.
Today I am monitoring the price action to potentially test of the 8 period daily moving averages and a move down to the 34 period daily moving averages.
Alternatively a failure to sustain lower prices could see USDCHF retest trend line resistance.
Gold
Summary
Monday Gold was moderatley bearish day as the price action closed lower but at the highs of Friday’s range.
Market overview
Gold continues to trade in a daily uptrend following the breach of the 1267.99 level being the swing high of the 10th December. The test of the large downward sloping trend line adds impetus to the current positive swing bias. Furthermore we have witnessed a large multi month double bottom forming which could indicate a large upside trend reversal is a possibility.
However the weekly time frame continues to point down. That the recent rejection of higher prices has come off a bounce from a downward sloping trend line and Fibonacci resistance level could indicate that the recent rally in Gold is part of a bigger cycle correction that ultimately sends Gold lower.
That Gold has experienced a strong daily time frame correction has pushed the price action into Fibonacci support and the ability or not of Fibonacci support to push Gold higher will give an indication if the bullish daily up trend or the bearish weekly down trend will win this current battle.
Focus on today
This morning Gold has opened strongly as the price action tests the 1310.00 resistance level and trades above Friday’s candle range.
Today I am monitoring the price action for Gold to trade up to the 1310.00 level and move to the 34 period daily moving averages.
Alternatively a failure to sustain higher prices could see Gold trade down to the 8 period moving averages.
Oil
Summary
Monday Oil traded within a volatile range around its averages.
Market overview
Oil continues to trade in a daily uptrend following the breach of the 100.72 level being the swing high of the 24th December. The daily and weekly times both have a positive bias. The recent price activity has seen the price action perform a text book move by trading down to Fibonacci support and from there bouncing higher. However Oil needs to hold above the 97.35 level so as to maintain its daily uptrend.
Focus on today
This morning Oil has opened bullishly as the price action trades above its averages.
Today I am monitoring the price action for a test 102.20 level being a prior swing high.
Alternatively a failure to sustain higher prices could see Oil trade back down to the 100.00 level.
AUDUSD
Summary
Monday AUDUSD experienced a moderatley down down as the price action traded within Friday’s candle range and closed above the 8 period daily moving averages.
Market overview
AUDUSD has been trading in a daily uptrend following the breach of the 0.9080 level being the swing high of the 18th February. However the weekly chart continues to trade in a weekly down trend with the price action now trading into the Fibonacci resistance area. That AUDUSD has formed a large inverse head and shoulders pattern it will be interesting to see if either this pattern trades to its upside target which comes in at the 0.9535 level or if Fibonacci resistance will offer a strong barrier to further upside momentum.
Focus on today
This morning AUDUSD has opened bullishly as the price action trades at the highs of Friday’s candle range.
I am this morning monitoring the price action for a potential move to the 61.8% Fibonacci resistance level.
Alternatively if AUDUSD fails to sustain higher prices there is a possibility that AUDUSD trades back down to the 8 period daily moving averages.
Dow30
Summary
Monday Dow30 continued to trade lower as the price action corrected down to the 34 period daily moving averages.
Market overview
The move above the 16,514 being the 7th March swing high has changed the daily trend to up. This has put the daily trend in gear with the weekly trend. However we have now seen a strong two day corrective down move that has take the price action back down to the 16,245 support level.
Focus on today
This morning Dow30 has opened quietly as the price action trades at the lows of the previous days candle range.
I am this morning monitoring the price action for a potential test of the 16,245 support level.
Alternatively if Dow30 fails to sustain lower prices there is a possibility that Dow30 tests the 8 period daily moving averages and then trades up to the 34 period daily moving averages.