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Technical Analysis Oct.24th

by on October 24, 2014 6:04 am GMT
 

EURUSD

EURUSD has found some support at 1.26, and the pair is currently consolidating, meaning there is unlikely to be continuation of the decline today. But in the coming weeks there is expected to be a re-test of the key demand area around 1.25, a breach of which should pave the way towards the 2012 low at 1.2040. In the meantime, the supply between 1.29 and 1.2850 will act as a ceiling and prevent any rally from extending.

Traders’ Sentiment
The SWFX market remains undecided with respect to the Euro—52% of the open positions are long and 48% are short. On the other hand, the pending orders are more active—the share of the sell ones grew from 60 to 66%.

EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.2743 1.2743 1.271
Resistance 2 1.271 1.271 1.2686
Resistance 1 1.268 1.268 1.2671
Pivot 1.2647 1.2647 1.2647
Support 1 1.2617 1.2617 1.2623
Support 2 1.2584 1.2584 1.2608
Support 3 1.2555 1.2555 1.2584

GBPUSD

A failure of the Cable to close above 1.62 this week resulted in the near-term technical indicators becoming even more bearish—six out of eight studies on the weekly time-frame are now pointing downwards. GBPUSD is now moving in the direction of the 1.590/1.585 area, and the nearest supports, such as the weekly PP and monthly S1 at 1.6030 and 1.5960 respectively, are not seen as a serious threat to the present bearish momentum.

Traders’ Sentiment
Most of the traders believe the Pound is undervalued and should recover some of the recent losses—64% of positions are long. Meanwhile, the gap between the buy and sell orders narrowed from 40 to 24 percentage points (in favour of the latter).

GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.6123 1.6123 1.6091
Resistance 2 1.6091 1.6091 1.6066
Resistance 1 1.6058 1.6058 1.6051
Pivot 1.6026 1.6026 1.6026
Support 1 1.5992 1.5992 1.6001
Support 2 1.5961 1.5961 1.5986
Support 3 1.5927 1.5927 1.5961

USDJPY

USDJPY overshot our expectations by a wide margin by effortlessly piercing through the resistance at 108. And while the weekly technical studies are mostly giving ‘buy’ signals, the pair must confirm the new support to confirm its longer-term bullish intentions. Alternatively, if the monthly pivot point and 23.6% Fibo are unable to stop the sell-off, the price may slide back to the 55-day SMA, which is currently residing at 107.

Traders’ Sentiment
As a result of a sudden jump in the price of the Dollar many of the market participants decided to enter short positions, the portion of which went up from 55 to 61%. But in the meantime, the percentage of the buy commands increased from 59 to 63%.

USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 109.88 110.04 109.12
Resistance 2 109.12 109.2 108.64
Resistance 1 108.64 108.8 108.35
Pivot 107.87 107.95 107.87
Support 1 107.39 107.55 107.39
Support 2 106.62 106.7 107.1
Support 3 106.14 106.3 106.62

USDCHF

The US Dollar came under the selling pressure ahead of the resistance at 0.9571, which is likely to act as a temporary ceiling. But USDCHF should preserve the upward tendency, as eventually the pair is expected to pay 0.97 a visit and then update this year’s peak. But it is worth noticing that the monthly indicators are mostly bearish, suggesting it may take some time before the rate overcomes the resistances.

Traders’ Sentiment
The traders’ sentiment towards USDCHF is moderately bullish, being that 58% of open positions are long. As for the orders, most of them placed 100 pips from the spot are to purchase the Dollar against the Franc.

USDCHF Pivot Levels Pivot Woodie Fibonacci
Resistance 3 0.96 0.96 0.958
Resistance 2 0.958 0.958 0.9564
Resistance 1 0.9559 0.9559 0.9554
Pivot 0.9538 0.9538 0.9538
Support 1 0.9517 0.9517 0.9522
Support 2 0.9496 0.9496 0.9512
Support 3 0.9475 0.9475 0.9496