0 comments

Technical Analysis Oct.22nd

by on October 23, 2014 7:01 am BST
 

EURUSD

As suspected, the Oct 6-15 up-trend was no longer a viable support and the bears pushed the price beneath it. Now EUR/USD is headed towards weekly S1 at 1.2619, but this level is unlikely to keep the currency pair away from this year’s low for long. On the other hand, the support at 1.25 will be much more difficult to breach, also considering that the monthly studies are still bullish, but eventually the bears are expected to gain the upper hand.

 

Traders’ Sentiment
Apparently, the market does not consider the Euro to be trading near the bottom—only 53% of open positions are long. And the sell-off may accelerate—most of the orders (60%) are to sell the common currency against the Buck.
Pivot Woodie Fibonacci
Resistance 3 1.2811 1.2795 1.2775
Resistance 2 1.2775 1.2767 1.2736
Resistance 1 1.2709 1.2693 1.2712
Pivot 1.2673 1.2665 1.2673
Support 1 1.2606 1.259 1.2634
Support 2 1.2571 1.2563 1.261
Support 3 1.2504 1.2488 1.2571

GBPUSD

A step above the multi-month down-trend on Monday turned out to be a false break-out—the Pound is already trading below 1.61, which was supposed to act as a new floor. Accordingly, GBP/USD is now likely to slide down to 1.5870/50 (2014 and 2013 Q4 lows), as suggested y the daily and weekly technical indicator. However, the price may take a break at 1.5960/30, where the support is implied by the weekly and monthly S1 levels.

 

Traders’ Sentiment
A substantial majority of the SWFX market participants expects the Sterling to outperform the US Dollar—64% of open positions are long. But they are likely to be closed very soon—as many as 70% of all the commands placed are to sell the Pound.
Pivot Woodie Fibonacci
Resistance 3 1.6231 1.6223 1.6181
Resistance 2 1.6181 1.6177 1.6135
Resistance 1 1.6111 1.6103 1.6107
Pivot 1.6061 1.6057 1.6061
Support 1 1.5992 1.5984 1.6015
Support 2 1.5942 1.5938 1.5987
Support 3 1.5872 1.5864 1.5942

USDJPY

The US Dollar maintains the upward direction after retreating to the support at 106.50 earlier this week. And since there are no significant resistances nearby and most of the studies on the weekly time-frame are giving ‘buy’ signals, the rally should extend at least up to 108. There the pair will already face a dense supply area, created by the monthly pivot point, weekly R1 and 23.6% Fibo retracement of the Jul-Oct up-move.

 

Traders’ Sentiment
The market remains undecided—45% of positions are long and 55% are short. However, there was a significant increase in the percentage of buy orders set 100 pips from the spot price—from 50 to 59%.
Pivot Woodie Fibonacci
Resistance 3 108.01 108.03 107.69
Resistance 2 107.69 107.7 107.47
Resistance 1 107.43 107.45 107.33
Pivot 107.11 107.12 107.11
Support 1 106.85 106.87 106.89
Support 2 106.53 106.54 106.75
Support 3 106.26 106.28 106.53

USDCHF

USD/CHF built on the gains made on Tuesday and thus reached the upward-sloping trend-line it has recently breached. Consequently, there may be a sell-off from 0.9571, but shallow, since the Greenback is now targeting the key resistance at 0.97, where the 2014 high coincides with the weekly R2 and monthly R1. And while the weekly technical favour the Dollar, on a higher time-frame they portend a decline.

 

Traders’ Sentiment
The ratio of bulls (58%) to bears (42%) remains constant, even though USD/CHF is not trading flat. In the meantime, 58% of the pending orders near the current market price are to purchase the Greenback against the Swiss Franc.
Pivot Woodie Fibonacci
Resistance 3 0.9634 0.9646 0.9588
Resistance 2 0.9588 0.9594 0.9561
Resistance 1 0.9564 0.9576 0.9545
Pivot 0.9518 0.9524 0.9518
Support 1 0.9494 0.9506 0.9491
Support 2 0.9448 0.9454 0.9475
Support 3 0.9424 0.9436 0.9448