Daily Technical Analysis 10th April 2014
Posted: Thu Apr 10, 2014 11:47 amDaily Technical Analysis
10th April 2014
EURUSD
Summary
Wednesday EURUSD continued to trade higher as the price action traded into the upper range of the 24th March high.
Market overview
EURUSD continues to trade in a daily uptrend following the breach of the 1.3741 level being the 24th January swing high. The daily trend is now in gear with the strong weekly up trend. This price action has put the daily time frame in gear with the positive weekly trend. The large head and shoulders pattern would appear to be invalidated by the past three days of bullish momentum.
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 actions for a potential test of the 1.3875 level being the 24th March prior pivot high.
Alternatively if EURUSD fails to sustain higher prices there is a possibility we see a move back to the averages.
GBPUSD
Summary
Wednesday GBPUSD continued to trade higher as the price action the 1.6795 resistance level whoch coincided with the prior high of the 17th February.
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. The past two day’s price activity has as expected, broken the converging triangle to the upside.
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 triangle formation and move to the 1.6795 level.
Alternatively if GBPUSD cannot sustain higher prices could see the price action test the 1.6700 support level.
USDJPY
Summary
Wednesday USDJPY consolidated at the lows of Tuesday’s big down leg with the price action being unable to pentrate beneath the 101.70 support level.
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. A breach of the 101.19 level being the 14th March low would change the daily trend to down.
Focus on today
This morning USDJPY has opened negatively with the price action testing the 101.70 support level.
Today I am monitoring USDJPY for a close beneath the 101.70 support level.
Alternatively a failure to sustain lower prices could see USDJPY trade back up to the 34 period moving averages.
USDCHF
Summary
Wednesday USDCHF continued to experienced a strong downside correction off trend line resistance with the price action trading and closing beneath the 34 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 recent 3 day collapse off trend line resistance has invalidated the inverse head and shoulders pattern. 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 at the lows of Wednesday’s candle range.
Today I am monitoring the price action to potentially move into the direction of the 13th March low.
Alternatively a failure to sustain lower prices could see USDCHF retest trend line resistance.
Gold
Summary
Wednesday Gold continued to test the 1310 resistance level.
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 trades above the 1310.00 resistance level.
Today I am monitoring the price action for Gold to hold above 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.
AUDUSD
Summary
Wednesday AUDUSD continued to trade higher as the price action closed above the 0.9390 resistance level and accelarates towards the 78.6% Fibonacci resistance level.
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 Wednesday’s candle range.
I am this morning monitoring the price action for a potential test of the 0.9535 resistance level.
Alternatively if AUDUSD fails to sustain higher prices there is a possibility that AUDUSD trades back down to the 0.9390 support level.
10th April 2014
EURUSD
Summary
Wednesday EURUSD continued to trade higher as the price action traded into the upper range of the 24th March high.
Market overview
EURUSD continues to trade in a daily uptrend following the breach of the 1.3741 level being the 24th January swing high. The daily trend is now in gear with the strong weekly up trend. This price action has put the daily time frame in gear with the positive weekly trend. The large head and shoulders pattern would appear to be invalidated by the past three days of bullish momentum.
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 actions for a potential test of the 1.3875 level being the 24th March prior pivot high.
Alternatively if EURUSD fails to sustain higher prices there is a possibility we see a move back to the averages.
GBPUSD
Summary
Wednesday GBPUSD continued to trade higher as the price action the 1.6795 resistance level whoch coincided with the prior high of the 17th February.
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. The past two day’s price activity has as expected, broken the converging triangle to the upside.
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 triangle formation and move to the 1.6795 level.
Alternatively if GBPUSD cannot sustain higher prices could see the price action test the 1.6700 support level.
USDJPY
Summary
Wednesday USDJPY consolidated at the lows of Tuesday’s big down leg with the price action being unable to pentrate beneath the 101.70 support level.
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. A breach of the 101.19 level being the 14th March low would change the daily trend to down.
Focus on today
This morning USDJPY has opened negatively with the price action testing the 101.70 support level.
Today I am monitoring USDJPY for a close beneath the 101.70 support level.
Alternatively a failure to sustain lower prices could see USDJPY trade back up to the 34 period moving averages.
USDCHF
Summary
Wednesday USDCHF continued to experienced a strong downside correction off trend line resistance with the price action trading and closing beneath the 34 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 recent 3 day collapse off trend line resistance has invalidated the inverse head and shoulders pattern. 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 at the lows of Wednesday’s candle range.
Today I am monitoring the price action to potentially move into the direction of the 13th March low.
Alternatively a failure to sustain lower prices could see USDCHF retest trend line resistance.
Gold
Summary
Wednesday Gold continued to test the 1310 resistance level.
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 trades above the 1310.00 resistance level.
Today I am monitoring the price action for Gold to hold above 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.
AUDUSD
Summary
Wednesday AUDUSD continued to trade higher as the price action closed above the 0.9390 resistance level and accelarates towards the 78.6% Fibonacci resistance level.
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 Wednesday’s candle range.
I am this morning monitoring the price action for a potential test of the 0.9535 resistance level.
Alternatively if AUDUSD fails to sustain higher prices there is a possibility that AUDUSD trades back down to the 0.9390 support level.