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Technical Outlook for Majors 17/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 17, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro continues to trade in sideways mode, with near-term price action being established within 1.2700/1.2840 range. Initial bulls are fading, as hourly studies are in neutral mode, 4-hour indicators move sideways and near-term ADX studies neutral. Further consolidation is seen likely, however, yesterday’s close in red and Inside Day candle, suggest that downside is still vulnerable. Range floor at 1.27 zone is reinforced by daily 10/20SMA bull-cross and break here to weaken structure for test of 1.2620/00 higher base. Initial supports lay at 1.2765, trendline support / 4-ghour 55SMA, ahead of higher lows at 1.2731/04. On the upside, trendline resistance at 1.2820 offers immediate barrier, ahead of lower platform at 1.2840 and key 1.2849, 15 Oct spike high.
    Res: 1.2843; 1.2884; 1.2900; 1.2930
    Sup: 1.2800; 1.2765; 1.2731; 1.2722

    [​IMG]GBPUSD</p>Cable ended yesterday’s trading in positive mode, marking the second day positive close, which supports near-term corrective action. Recovery rally off fresh low at 1.5875, regained 1.61 barrier, psychological resistance and Fibonacci 61.8% retracement of 1.6225/1.5875 descend. Sustained break here and through 1.6125, 13 Oct lower top, is required to confirm near-term recovery and open 1.6153, daily 20SMA, ahead of breakpoint at 1.6225, peak of 09 Oct. However, overall tone remains bearish and current action is seen as consolidation before fresh push lower.
    Res: 1.6108; 1.6125; 1.6153; 1.6200
    Sup: 1.6056; 1.6020; 1.6000; 1.5964

    [​IMG]USDJPY</p>The pair consolidates above fresh low at 105.18, with corrective action from here, being so far limited at 106.50, by descending 4-hour 20SMA. Yesterday’s Inside Day candle could be a signal of reversal, as pullback from 109.89 lower top, was contained by ascending daily 55SMA, which was cracked, but the price failed to clearly break lower. Near-term studies are mixed, while daily MACD is breaking below the midline and strong bearish momentum keeps the downtrend intact for now. Additional pressure will be seen in case of close below broken Fibonacci 38.2% of 101.07/110.07 level at 106.63, while weekly close below 105.57, 50% retracement, will confirm bears. Alternatively, regain of week’s highs and lower platform at 107.50, also 50% retracement of 109.89/105.18 descend, would sideline bears.
    Res: 106.50; 106.65; 107.00; 107.50
    Sup: 106.00; 105.50; 105.18; 105.00

    The pair remains in near-term sideways mode, as price action is entrenched within 0.8641/0.8896 consolidative range. Overall bearish tone remains in play and sees fresh extension of larger downtrend as preferred scenario, as descending daily 20SMA, caps the upside attempts for now. Top of corrective range at 0.89, along with 38.2% of 0.9400/0.8641, marks strong barrier and breakpoint and only sustained break here would have more significant impact on short-term bears.
    Res: 0.8790; 0.8836; 0.8858; 0.8896
    Sup: 0.8731; 0.8700; 0.8684; 0.8673

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