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Technical Outlook for Majors 27/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 27, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro ticked higher and probed above 1.27 barrier on extended consolidative phase off 1.2612, 23 Oct low. Last Friday positive close gives positive signal, however, failure to close above daily 20SMA, keeps the downside at risk. Extension above 1.27 barrier, so far tested 38.2% of 1.2884/1.2612 descend at 1.2716, with extension and close above 1.2750 zone, 50% retracement / daily Tenkan-sen line and broken bull-trendline off 1.2499 low, required to confirm recovery and higher base formation at 1.26 zone. However, weak daily and 4-hour studies, see limited upside action for now, with upside rejection to risk lower top formation and possible return to strong 1.26 support area, below which, retest of key near-term support at 1.2499, would be expected.
    Res: 1.2716; 1.2750; 1.2790; 1.2839
    Sup: 1.2675; 1.2658; 1.2633; 1.2612

    Cable bounced off important 1.60 support zone, where recent pullback was contained by daily Tenkan-sen line at Fibonacci 61.8% retracement of 1.5873/1.6182 ascend. Fresh strength, which signals reversal on last Friday’s positive close, attempts above daily 20 SMA at 1.6093 and through pivotal 1.6100/28 resistance zone, psychological barrier / double-Fibonacci resistance of 38.2% of 1.6522/1.5873 and 61.8% of 1.6182/1.5992 / lower top of 22 Oct. Break and close above here to confirm bulls which are developing on 4-hour chart and open way towards breakpoints at 1.6182/1.6225, 21/09 Oct peaks. Failure to clear 1.61 barrier would signal extended consolidation, while loss of 1.60 handle will be bearish.
    Res: 1.6108; 1.6120; 1.6150; 1.6182
    Sup: 1.6070; 1.6037; 1.6016; 1.5992

    The pair remains supported in the near-term and trades in consolidative phase under fresh high at 108.34, where acceleration of the upleg from 106.23 was so far capped. Bulls developing on daily chart require sustained break above 108 barrier, which is now paused by Friday’s close in red. Initial supports at 107.73/63, daily 20SMA / daily Kijun-sen line, should be ideally keeping the downside protected for eventual push towards 110 breakpoint zone. However, caution is required while the price stays around 108 handle, as easing below initial supports and probe below 107.40/30, previous high / 50% retracement of 106.23/108.34 upleg, would weaken near-term structure and sideline bulls.
    Res: 108.34; 108.73; 109.00; 109.22
    Sup: 107.76; 107.63; 107.38; 107.29

    Near-term picture structure turned positive, as the pair attempted again above 0.88 barrier, with 0.8820 zone so far capping. However, overall near-term price action continues to move in a range trading. Improved near-term studies require trigger for attack at the upper boundary of the range and establish fresh direction on a break higher. On the other side, overall negative structure, favors resumption of larger downtrend from 0.9400 lower top, on completion of short-term consolidative phase for stronger correction of larger 0.9400/0.8641 descend.
    Res: 0.8820; 0.8831; 0.8858; 0.8900
    Sup: 0.8782; 0.8766; 0.8747; 0.8717

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