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Technical Outlook for Majors 31/10/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 31, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro remains under pressure, with fresh weakness off 1.2630, yesterday’s recovery peak, hitting fresh 3 ½ week low, on a probe below yesterday’s 1.2545 low. Yesterday’s close below 1.2660, Nov 2012 low, is seen as initial signal for further descend, with overall bearish technicals supporting the notion. However, yesterday’s hammer candle close, signals reduced selling pressure, which may trigger further consolidation, ahead of fresh weakness. Watch the weekly close, which is required to occur bellow 1.2660 and also below 1.2600, former base, to confirm bearish resumption. Otherwise, prolonged sideways trade could be expected in the near-term, while rallies above 1.2630 would delay bears. Pivotal resistance lies at 1.2690, daily sideways moving Tenkan-sen and Kijun-sen lines.
    Res: 1.2600; 1.2630; 1.2663; 1.2690
    Sup: 1.2539; 1.2499, 1.2464; 1.2400

    [​IMG]GBPUSD</p>The pair attempts again below psychological 1.60 level, where the pair closed yesterday with Doji candle, which emerged after recovery attempts stalled at 1.6037. Bears prevail on all timeframes, which favors further weakness, for possible retest of key support at 1.5873, 15 Oct low, for full retracement of 1.5873/1.6182, after the pair left double-top at 1.6182/80 and accelerated lower sharply. Weekly close below 1.60 barrier, which also marks 50% of larger 1.4812/1.7189, 2013 low/2014 peak ascend, to confirm bearish resumption. Conversely, close above would signal further consolidation. Only sustained break above 1.6037, yesterday’s high and 1.6067, daily 20SMA / Tenkan-sen line, would sideline near-term bears.
    Res: 1.6000; 1.6037; 1.6054; 1.6067
    Sup: 1.5949; 1.5900; 1.5873; 1.5850

    [​IMG]USDJPY</p>Fresh acceleration higher, which cleared strong barriers and previous highs at 110 zone, also 110.66, 15 Aug 2008 peak, took out 111 barrier. Strong rally looks for test of psychological 112 resistance and 112.38, Fibonacci 61.8% of multi-year 135.16/75.55 descend and 112.67, Fibonacci 76.4% retracement of 124.14/75.55 descend. Corrective actions on overbought near-term studies, should be contained above 110 zone, above which weekly close is also required, to keep bulls intact.
    Res: 112.00; 112.38; 112.67; 113.00
    Sup: 111.00; 110.72; 110.20; 110.00

    The pair remains in near-term range trading, following false break above 0.89 range top and subsequent pullback. Near-term price action is attempting to stabilize above 0.88 support, also daily Tenkan-sen line, which is required to keep the price in the upper part of the range, for possible renewed attempts higher. Near-term studies are in neutral mode, while dailies are gaining momentum and keeping near-term focus at the upside. Initial supports lay at 0.8783, daily 20SMA, session low, reinforced by daily Kijun-sen line and 0.8753, yesterday’s low, above which today’s close should occur, to keep upside targets in play.
    Res: 0.8830; 0.8850; 0.8880; 0.8909
    Sup: 0.8800; 0.8783; 0.8753; 0.8717

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