Daily Technical Analysis for EURUSD as at 2nd October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday EURUSD traded substantially higher only for it to pair its gains and close near its open and just above the 8 period moving averages. This morning this average continues to offer some support and a potential value area for longs to be taken.
The pattern being formed is a rising wedge. A break down from this pattern could see EURUSD trade down to the 34 period moving averages. A break down would be in line with the weekly RSI which has yet to confirm the up move.
However with the swing bias continuing to point up on both daily and weekly time frames and the moving averages layered positively we are monitoring a possible move to 1.3710 being a previous weekly pivot high.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities
Scenario 2
Alternatively a breach of the 8 period moving averages could see EURUSD trading down to the 34 period moving averages.
Daily Technical Analysis for GBPUSD as at 2nd October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
GBPUSD continue its upward movement following the bounce off the 8 period moving averages. GBPUSD is now threatening to breach a multiyear down trend line and the 1.6400 area which coincides with a prior weekly pivot high. With the RSI and the moving averages confirming the up move and weekly time frame being in gear with the daily time frame shorting such a strong up trend can be dangerous.
However with GBPUSD now extended from the averages and trading into overhead resistance there is a possibility of a rejection of these level and a potential move back down to the averages.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities. These retracements would be ideally taken off an obvious corrective pull back to the 8 period moving averages, trend line support or previous pivot high. However there is a possibility that pull backs are limited and GBPUSD continues to break higher. In this case pullbacks and break outs could potentially be identified off lower time frames.
Scenario 2
Alternatively a rejection of resistance could see GBPUSD trade back down to the 8 period moving averages.
Daily Technical Analysis for USDCHF as at October 2013
DAILY OVERVIEW
Trend : Down
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDCHF breached the 0.9020 area only for support to come into the market for this currency pair and in the process the price action printed a bullish hammer. This morning USDCHF continues to hold above the 0.9020 and is now touching the 8 period moving averages which is a potential value area where shorts could potentially be added.
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. However there is a possibility of USDCHF continuing to break lower following relatively minor corrective pullbacks which can be identified off intraday charts.
Scenario 2
Alternatively one could potentially take scalp longs up to the previously mentioned value areas.
Daily Technical Analysis for USDJPY as at 2nd October 2013
DAILY OVERVIEW
Trend : Long
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday USDJPY traded up to the 8 period moving averages only for this pair to reject this level. This morning the negativity has increased as USDJPY trades down from both the averages and Fibonacci resistance.
All eyes are now on the 96.80 level which coincides with a prior swing low. A breach of this pivot will effectively change the trend to short on a swing basis.
However a possible daily trend change to down maybe limited due to the strength of the uptrend’s that can be found in both Monthly and Weekly time frames with a breach of the prior swing high will confirm the uptrend.
Scenario 1
As the dominant daily trend is up retracements into support could be viewed as buying opportunities
Scenario 2
Alternatively a move beneath the converging triangle opens up a possibility of shorting USDJPY down to the prior swing low.
Daily Technical Analysis for Gold as at 2nd October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Yesterday Gold breached the low of the 18th September pivot and in the process changed the trend on a swing basis to down. The move yesterday was large and exceeded the daily average range. For this reason and due to the price action being extended from the averages and the weekly RSI continuing to diverge positively we are monitoring Gold for signs of a corrective upward retracement.
However as the trend is now down and with the formation of a bearish head and shoulders pattern now forming the main focus for the time being would be for possible short set ups.
Scenario 1
As the dominant daily trend is down corrective sideways to up movements could potentially be viewed as selling opportunities.
Scenario 2
Alternatively as the price action is extended from the averages there is potential for scalp longs back up to these averages.
Daily Technical Analysis for Oil (WTI) as at 2nd October 2013
DAILY OVERVIEW
Trend : Short
Ambush Zone : -
Target 1 : -
Target 2 : -
Stop : -
Comments
Monday’s down move eventually formed a bullish hammer. With yesterdays price action trading within Monday’s range and today’s open being quiet and within this range we are monitoring the 101 area to if support can hold Oil around this level.
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.