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Technical Outlook for Majors 20/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 20, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro remains in near-term sideways mode, trading within 1.2700/1.2840 consolidative range, after last week’s strong acceleration higher spiked at 1.2884. Friday’s attempts at range tops were unsuccessful, with subsequent quick pullback to the range’s lower zone, weakening hourly structure. On the other side, 4-hour studies maintain positive tone, with price action being supported by 55SMA for now. Larger picture studies are also mixed, as last Friday’s close in red, keeps the pair under pressure, while the second consecutive positive weekly close, although with limited upside power, according to long upper wicks of the candles, suggests lacks of momentum for final push higher. This would signal extended consolidative phase, with break of either side, required to establish fresh direction. Immediate supports lay at 1.2727/22, 4-hour 55SMA/Fibonacci 61.8% of 1.2622/1.2884 and 1.2700, range floor and 16 Oct spike low, loss of which to weaken near-term structure for further correction of 1.2499/1.2884 ascend. Conversely, fresh strength above range top, to signal resumption of recovery rally from 1.2499, 03 Oct low, for attempt at pivotal 1.29/1.30 barriers.
    Res: 1.2778; 1.2800; 1.2843; 1.2884
    Sup: 1.2722; 1.2700; 1.2646; 1.2622

    Cable consolidates after hitting pivotal 1.6125 barrier, lower top of 13 Oct, clear break of which is required to complete the first step of recovery action from 1.5875 low and open the breakpoint at 1.6225, 09 Oct lower top. Positive tone prevails on lower timeframes studies and supports further recovery action. On the other side, indecision is signaled on larger picture, as both daily and weekly closes, were in Doji candle, as daily action remains capped by descending 20SMA, while weekly 100SMA so far held upside attempts. Extended consolidative phase is seen likely in the near-term and unless the price rallies to key 1.6225 barrier, risk of ending near-term corrective phase, will remain in play. Initial supports lay at 1.6081 and 1.6057, while violation of pivotal higher low at 1.6030, also Fibonacci 38.2% of 1.5875/1.6125 upleg, would sideline near-term bulls.
    Res: 1.6111; 1.6125; 1.6142; 1.6200
    Sup: 1.6081; 1.6057; 1.6030; 1.6000

    The pair remains steady in near-term trading, as acceleration of corrective rally off 105.18, 15 Oct low, stabilizes above 107 handle, following, weekly gap-higher opening. Completion of 107.50/105.18 phase, lower top of 15 Oct / 50% of 109.89/105.18 descend / daily 20SMA and sustained break higher, which also requires clearing daily Kijun-sen line at 107.63, is required to sideline bears and signal further recovery. Studies of 4-hour and daily chart are attempting at their midlines, with break higher to confirm bullish resumption. Alternatively, extension and close below 107 handle would be initial signal of lower top formation and fresh weakness.
    Res: 107.38; 107.50; 107.63; 108.00
    Sup: 107.00; 106.77; 106.56; 106.33

    [​IMG]AUDUSD</p>The pair remains in near-term sideways mode, as price action continues to move within narrowed 0.8734/0.8810 price span, part of larger 0.8641/0.8896 consolidative range. Overall bearish tone remains in play and sees fresh extension of larger downtrend as preferred scenario, as the price action holds below descending daily 20SMA 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. Last Friday’s Doji, however, would signal prolonged consolidation, before the price establishes in fresh direction.
    Res: 0.8786; 0.8810; 0.8836; 0.8858
    Sup: 0.8746; 0.8731; 0.8700; 0.8684

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