ACFX DAILY TECHNICAL REPORT – LONDON OPEN 22.01.2015
EURUSD
The intraday technical outlook
Yesterday EURUSD traded nervously as the market battled to form a view on the soon to announced us ECB stimulus program.
The markets have already priced in EUR 500 billion and an “open ended” ECB policy.
A failure to deliver this could send European equities crashing and the Euro higher.
EURUSD is trading in an intraday 1 hour downtrend with the line of control at the 1.1640 level.
Current support comes in at 1.1565 and 1.1500.
Alternatively resistance can be found at 1.1640 and 1.1725.
GBPUSD
The intraday technical outlook
Yesterday GBPUSD traded lowers on the news that all MPC policy makers had decided to keep interest rates on hold.
Up until recently two of the Monetary Policy Committee members had advocated a increase in interest rates. Therefore this shift in opinion puts back further the possibility of an interest rate increase.
Trying to make sense of the 1 hour chart for Cable at the moment is a little difficult as the price action has become very volatile with wild swings in price occurring.
A look at the four hour chart one can see the price action forming one of the most difficult patterns to trade which is an expanding triangle.
The price action needs to break above or beneath this range for more clarity to come into the trade.
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 1.5100 and 1.5200 levels.
Alternative resistance comes in at 1.5100 and 1.5050.
USDJPY
The intraday technical outlook
USDJPY continues to trade 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.
USDJPY is trading in an intraday 1 hour uptrend with the line of control at the 117.15 level
Current resistance levels are at 118.25 and 118.85.
Alternatively support is at 117.75 and 117.15.
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
Yesterday AUDUSD crashed through its 0.8160 support level.
This move has changed the intraday trend from up to down.
AUDUSD is trading in an intraday 1 hour downtrend with the line of control at the 0.8230 level.
Current support is at the 0.8070 and 0.8035.
Alternatively resistance can be found at 0.8125 and 0.8160.
GOLD
The intraday technical outlook
Gold has experienced a two day correction that has taken the price action close to its channel bottom and the 1280.00 support level.
I am monitoring the price action for a potential rebound off these levels.
Gold is trading in an intraday 1 hour uptrend with the line of control at the 1269.00 level.
Current resistance comes in at 1306.00 and 1321.00.
Alternatively support comes in at 1280.00 and 1269.00.
OIL
The intraday technical outlook
The recent price action on oil has seen the trading ranges get smaller and smaller day by day.
Trying to get a 1 hour trend bias is difficult at the moment.
Although we have a break above a prior swing high which means we are in a technical up trend the structure of the recent price action leads me to question the validity of current directional momentum.
That we have had a break of a large down channel does give an indication that the longer term bias is up.
However the price of Oil at the moment is dictated by through away comments by official and semi official comments and current geo-political events.
More clarity will come once we have the ECB meeting and this afternoons Crude Inventories report.
Oil is trading in an intraday 1 hour uptrend with the line of control at the 46.80 level.
Current resistance comes in at 48.20 and 48.85
Alternatively support comes in at 46.80 and 46.00.
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