0 comments

Technical Analysis Nov.6th

by on November 6, 2014 8:03 am GMT
 

EURUSD

The single European currency managed to breach a considerable support line, represented by October low at 1.25, but bounced back in the beginning of Thursday. If today the pair closes below this level, then a decline down to 1.2376 will be highly estimated. Otherwise, the Euro may commence a recovery, which is the less likely scenario, taking into account rather bearish technical indicators on the EURUSD cross and its overall bearish trend.

Traders’ Sentiment
Distribution between long and short positions on this currency pair improved since yesterday, as now 54% of all traders are ready to acquire the Euro. Pending orders, however, changed just a little, with 52% of them set to buy the single currency in 100-pip range.

EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.2655 1.2643 1.2611
Resistance 2 1.2611 1.2605 1.2569
Resistance 1 1.2545 1.2533 1.2543
Pivot 1.2501 1.2495 1.2501
Support 1 1.2435 1.2423 1.2459
Support 2 1.2391 1.2385 1.2433
Support 3 1.2325 1.2313 1.2391

GBPUSD

Due to fundamental factors, the GBPUSD currency pair dropped significantly on Wednesday down to the 2014 low at 1.5874, but was able to return back and close near the 1.60 major level at the end of the day. The resistance level ahead is likely to pose problems for the cross, meaning that the bearish environment is likely to drive the market for the Pound. However, if the pair eventually crosses the mentioned 2014 low, then it will face the next support just 20 pips below, strengthened by 2013 Q4 low and monthly S1.

Traders’ Sentiment
While long opened positions increased their share on the market (58%), bullish pending orders in both ranges deteriorated down to 33% and 38% in 50 and 100-pip ranges, respectively.

GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.6187 1.6193 1.6104
Resistance 2 1.6104 1.6107 1.6045
Resistance 1 1.6034 1.604 1.6009
Pivot 1.5951 1.5954 1.5951
Support 1 1.5881 1.5887 1.5893
Support 2 1.5798 1.5801 1.5857
Support 3 1.5728 1.5734 1.5798

USDJPY

Yesterday, the USDJPY pair decided to test the strong resistance line around 114.70, but was forced to give up this idea after several unsuccessful attempts to do that. Now the pair is trading right below the 2007 Dec high at 114.39. Taking into account positive technical indicators on the daily and weekly charts, we can still expect more attacks on the mentioned resistance to take place in the foreseeable future. Otherwise, the pair will be set to move sideways for some period of time.

Traders’ Sentiment
No major changes were noticed in market sentiment for USDJPY cross. Bearish positions take up 56% of all, while pending orders in both ranges remain strongly positive at the moment.

USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 116.54 116.72 115.69
Resistance 2 115.69 115.78 115.17
Resistance 1 115.17 115.35 114.84
Pivot 114.32 114.41 114.32
Support 1 113.8 113.98 113.8
Support 2 112.95 113.04 113.47
Support 3 112.43 112.61 112.95

USDCHF

USDCHF continues to develop in a mixed environment for a third consecutive day, as the pair is still well supported by the weekly pivot point at 0.9582. Additionally, the 2014 high at 0.9687 limits the pair’s movements to the upside. Therefore, we can expect a prolonged period of horizontal development of this cross, as two last attempts to cross the 2014 high turned to be unsuccessful. However, technical studies remain bullish in the short-term, while monthly indicators suggest the Dollar will be losing value.

Traders’ Sentiment
In addition to market participants, who remain bullish on USDCHF perspectives in the majority of cases (57%), the vast part of pending orders also turned to the positive side and are set to buy the Dollar.

USDCHF Pivot Levels Pivot Woodie Fibonacci
Resistance 3 0.9755 0.9763 0.9708
Resistance 2 0.9708 0.9712 0.9678
Resistance 1 0.9677 0.9685 0.966
Pivot 0.963 0.9634 0.963
Support 1 0.9599 0.9607 0.96
Support 2 0.9552 0.9556 0.9582
Support 3 0.9521 0.9529 0.9552