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Technical Outlook for Majors 16/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 16, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro rallied sharply yesterday from higher base which was left at 1.2600/20 zone and broke above one-week congestion top at 1.2790. The price has spiked near psychological 1.29 barrier and consolidates above 1.28 level, which now acts as initial support, along with previous peak at 1.2790. Strong bulls have been established on lower timeframes, along with ascending daily indicators and weekly RSI emerging from oversold territory. Yesterday’s positive close with long Outside Day candle, supports further upside towards immediate target at 1.2900 and psychological 1.3000 barrier, reinforced by descending daily 55SMA, in extension. Corrective actions under 1.2800/1.2780 support zone, which also marks Fibonacci 38.2% of 1.2622/1.2884 ascend and hourly 20SMA, would delay immediate bulls and should be contained above 1.2720, Fibonacci 61.8% retracement. On the other side, underlying bearish trend still sees the rally as corrective phase, before fresh weakness. Sustained break above 1.3000 is required to neutralize larger bears.
    Res: 1.2843; 1.2884; 1.2900; 1.2930
    Sup: 1.2800; 1.2790; 1.2739; 1.2720

    Cable remains negative, despite yesterday’s bounce off fresh low at 1.5875, which peaked at 1.6067, short of pivotal 1.6100/25 barriers. Negative 4-hour studies, offset slight improvement of hourly technicals and would keep the downside in focus, unless the 1.6100/25 barriers are cleared. Renewed weakness through 1.5875, to open immediate target at 1.5853, Nov 2013 low and could extend to 1.5720, Fibonacci 61.8% retracement of larger 1.4812/1.7189 ascend.</p>Res: 1.6000; 1.6020; 1.6067; 1.6100
    Sup: 1.5945; 1.5920; 1.5900; 1.5875

    [​IMG]USDJPY</p>The pair came under increased pressure yesterday and accelerated from 107.50, yesterday’s high, where lower top was left. Fresh weakness took out supports at 105.70, daily 55SMA and 105.57, 50% retracement of 101.07/110.07 ascend and posted new low at 105.18, just ahead of psychological 105 support. Overall bulls remain firmly in play and see further downside favored, with corrective actions on oversold near-term studies, preceding fresh push lower. Previous consolidation range floor at 106.65, also Fibonacci 61.8% of 107.50/105.18 descend, offers good resistance, with extended rallies to be capped under psychological 107 barrier. Only break above 107.50 lower top, 50% of 109.89 / 105.18 descend, reinforced by 4-hour 55SMA, would neutralize bears.
    Res: 106.34; 106.65; 107.00; 107.50
    Sup: 105.74; 105.18; 105.00; 104.51

    The pair remains entrenched within 0.8641/0.8896 range, with near-term price action in consolidative / corrective mode, after yesterday’s / overnight’s bumpy ride. Fresh strength failed on repeated attempts above 0.88 handle, in attempt to move into range’s upper part and put pressure at range top and psychological barrier at 0.89. However, positively aligned near-term studies see fresh upside attempts in near-term agenda, with yesterday’s Outside Day candle, supporting the notion. Corrective action should be ideally contained at 0.8744, Fibonacci 61.8% of 0.8673/0.8858 upleg, to keep the upside targets in near-term play. Otherwise, further easing is expected to weaken near-term structure and signal prolonged sideways trading.
    Res: 0.8800; 0.8836; 0.8858; 0.8896
    Sup: 0.8744; 0.8715; 0.8700; 0.8673

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