ACFX DAILY TECHNICAL REPORT – LONDON OPEN 20.01.2015
EURUSD
The intraday technical outlook
Yesterday EURUSD failed to breach the 1.1640 when it retested this level.
Subsequently the price action traded back down to the 1.1565 support level.
With the QE decision looming large the market is now trying to second guess which way the ECB will decide to go.
The SNB move had initially made it look like a decision on Euro Zone stimulus was a certainty however there are now concerns that the ECB could spring a surprise on traders.
EURUSD is trading in an intraday 1 hour downtrend with the line of control at the 1.1640 level.
Current support comes in at 1.1560 and 1.1500.
Alternatively resistance can be found at 1.1640 and 1.1725.
GBPUSD
The intraday technical outlook
Yesterday GDPUSD continued to slide as the price action took out a recent isolated 4 hour pivot low at the 1.5075 level.
It would appear that traders are now targeting the 1.5030 2015 low.
With the weekly and monthly charts looking so bear ugly there is a possibility that we do see a continuation of the downward momentum.
The only hope presently for the bulls is if a double bottom forms above the 1.5030 on the daily time frame.
GBPUSD is trading in an intraday 1 hour downtrend with the line of control at the 1.5175 level.
Current support can be found at 1.5075 and 1.5030 levels.
Alternative resistance comes in at 1.5100 and 1.5150.
USDJPY
The intraday technical outlook
USDJPY overnight broke above both the 117.75 resistance level and the downward channel.
The move above the 117.75 level has technically changed the trend from down to up.
With the Bank of Japan governor due to deliver a press conference in the early hours of Wednesday morning a reaffirmation of the current dovish stance will only add to this recent USDJPY rally.
USDJPY is trading in an intraday 1 hour uptrend with the line of control at the 116.90 level
Current resistance levels are at 118.85 and 119.30
Alternatively support is at 118.25 and 117.75.
USDCHF
The intraday technical outlook
As posted yesterday:
The market volatility that was caused by the SNB action continues to play havoc with the charts.
I am awaiting for new data to feed into the chart as only this will this help to smooth out the recent market volatility.
In meantime a new range has been formed between the 0.8450 to 0.8815 levels.
AUDUSD
The intraday technical outlook
This morning AUDUSD traded lower on the China GDP news.
However the sell off has been limited as the market digests the news that this data was not as bad as expected.
In the past four hours AUDUSD has traded higher off the 0.8160 support level.
I am now monitoring the price action for a possible retest of the 0.8240 level.
AUDUSD is trading in an intraday 1 hour uptrend with the line of control at the 0.8160 level.
Current resistance can be found at 0.8200 and 0.8215.
Alternatively support is at the 0.8160 and 0.8125.
GOLD
The intraday technical outlook
Gold this morning is trading higher following its one day consolidation with the price action currently testing the 1280.00 resistance level.
A breach and close above this level could accelerate the pace of upward momentum.
Gold is trading in an intraday 1 hour uptrend with the line of control at the 1254.00 level.
Current resistance comes in at 1280.00 and 1306.00.
Alternatively support comes in at 1269.00 and 1254.00.
OIL
The intraday technical outlook
Yesterday Mr. Mohammed al-Sabban who is the Saudi Arabia minister for petroleum said that his could country would not suffer economically even if oil prices stay at low levels for “at least eight years”.
It is obvious that such comments are made to spook the markets and came at a time when the price of oil has risen moderately.
Although oil did drop on the back of these comments the fall was not as dramatic and deep as could have been expected.
The intraday chart has now arrived at a juncture in that the price action is now trading in a 46.00 to 49.00 range.
A brake above or beneath this range will potentially dictate the medium term directional momentum.
Oil is trading in an intraday 1 hour downtrend with the line of control at the 48.85 level.
Current support comes in at 46.00 and 45.00.
Alternatively resistance comes in at 48.85 and 51.00.
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