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Technical Outlook for Majors 24/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 24, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro consolidates fresh weakness which found temporary footstep above psychological 1.26 support and low 10 Oct. Near-term price action is in directionless mode, confirmed by yesterday’s Doji candle. Daily 20SMA at 1.2686, offers initial resistance, ahead of and former range lows at 1.2700/30, also broken bull-trendline off 1.2499 low, where extended rallies should be ideally capped. Underlying bear-trend keeps downside in focus, however, weekly indicators in oversold territory, require caution. Close above 1.2730/50 zone is required to neutralize near-term bears and re-focus former range tops at 1.2840. Conversely, violation of 1.26 handle, to open key 1.2499, 03 Oct low.
    Res: 1.2686; 1.2700; 1.2730; 1.2748
    Sup: 1.2612; 1.2603; 1.2570; 1.2541

    Cable’s near-term structure remains negative, as the pair eventually dented psychological 1.60 support. Consolidative phase is under way and should be ideally capped by descending daily 20SMA at 1.6090, to keep immediate bears intact. Otherwise, break here above 1.6124, Fibonacci 38.2% of 1.6522/1.5873 descend, would delay and open way for further retracement. Also, daily Tenkan-sen line at 1.6028, where the price closed yesterday, still acts as good support, with repeated close above here, to signal delay in attempts below 1.60 handle.
    Res: 1.6058; 1.6076; 1.6090; 1.6124
    Sup: 1.6018; 1.5992; 1.5939; 1.5900

    The pair remains supported and fresh acceleration of the upleg from 106.23, higher low, eventually broke above psychological 108 barrier and 108.09, Fibonacci 61.8% of 109.89/105.18 descend. Yesterday’s positive close above daily 20SMA, is bringing daily bulls in play, for possible return to key 110 barrier. Today’s close above 108 handle, is required to signal reversal on a weekly chart, after two consecutive weekly closes in red. Corrective actions below fresh high at 108.34, should be ideally contained at 107.50/40 zone, Fibonacci 38.2% of 106.23/108.34 upleg and previous high of 20 Oct, to keep the structure intact.
    Res: 108.34; 108.73; 109.00; 109.22
    Sup: 107.84; 107.53; 107.38; 107.04

    Near-term picture remains unchanged, as price action continues to move in a range trading. Neutral/negative near-term studies require trigger to break either side of the range, to establish fresh direction, with repeated Doji candles, confirming indecision. However, overall bearish structure, favors resumption of larger downtrend from 0.9400 lower top, on completion of short-term consolidative phase. Daily Kijun-sen line at 0.8820, offers strong resistance and close above here would open 0.89 breakpoint and range top, break of which to put larger bears on hold, for stronger correction of larger 0.9400/0.8641 descend.
    Res: 0.8800; 0.8820; 0.8831; 0.8858
    Sup: 0.8747; 0.8717; 0.8700; 0.8684

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