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Technical Outlook for Majors 23/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 23, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro resumes lower and establishes fresh direction lower after breaking below near-term congestion. The second consecutive close in red, confirms near-term bears are back to play, as extension of reversal from 1.2884 peak retraced over 61.8% of 1.2499/1.2887 corrective rally. Immediate target lay at 1.2622 and 1.2603, higher lows of 15/10 Oct respectively, with break lower expected to re-focus key near-term support at 1.2499, low of 03 Oct. Descending daily 20SMA, offers initial resistance at 1.2690, ahead of 1.2700/30, former congestion lows and broken bull-trendline off 1.2499, below which corrective rallies should be capped.
    Res: 1.2690; 1.2700; 1.2730; 1.2758
    Sup: 1.2622; 1.2603; 1.2582; 1.2541

    [​IMG]GBPUSD</p>Cable accelerated lower and extended pullback from 1.6182, to approach psychological 1.60 support. This establishes fresh bears on 4-hour chart studies for further weakness and retracement of 1.5873/1.6182 ascend, as overall bears remain intact, after descending daily 20SMA limited upside attempts, keeping pivotal 1.6200/25 barrier intact. However, break and daily close below daily Tenkan-sen line at 1.6028 and psychological 1.6000 support, is required to confirm bearish resumption, which will be targeting 1.5991, Fibonacci 61.8% of 1.5873/1.6182 and 1.5939, higher low of 16 Oct, in extension, with full reversal of 1.2873/1.6182 ascend, expected to come on near-term agenda. Yesterday’s intraday high and consolidation top at 1.6076, offers initial resistance, ahead of 1.6100 and 1.6130 lower top, below which corrective rallies should ideally reverse. Alternative scenario requires break and close above 1.6225 breakpoint, to bring bulls back in play.
    Res: 1.6076; 1.6100; 1.6130; 1.6182
    Sup: 1.6035; 1.6010; 1.5991; 1.5939

    [​IMG]USDJPY</p>The pair stabilizes above 107 support, as fresh attempts higher nearly fully retraced 170.38/106.23 corrective pullback, with daily 20SMA at 107.35, being tested so far. Near-term studies are turning bullish, which supports further action higher, however, weak daily studies see risk of repeated rejection at 107.50/63 breakpoint, lower top of 15 Oct / 50% of 109.89/105.18 descend / daily Kijun-sen line, which would signal prolonged consolidation above 106.23, before fresh push lower. Conversely, clear break above 107.50/60 hurdles, to confirm bullish resumption of recovery rally from 105.18, 15 Oct low
    Res: 107.35; 107.50; 107.63; 108.00
    Sup: 106.77; 106.60; 106.23; 106.11

    [​IMG]AUDUSD</p>Near-term picture remains unchanged, as price action continues to move in a range trading. Near-term studies remain neutral and require trigger to break either side of the range, to establish fresh direction, with repeated Doji confirming indecision. However, overall bearish structure, favors resumption of larger downtrend from 0.9400 lower top, on completion of short-term consolidative phase. Only clear break above 0.89 breakpoint and range top would put larger bears on hold, for stronger correction of larger 0.94000/0.8641 descend.
    Res: 0.8800; 0.8813; 0.8836; 0.8858
    Sup: 0.8747; 0.8731; 0.8700; 0.8684

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