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Technical Analysis Oct.27th

by on October 27, 2014 6:03 am BST
 

EURUSD

The pair opened this week with a small upside gap, and it continues to move further north. However, the rally should prove to be shallow, considering the density and proximity of the resistances that lie overhead. The bulls are likely to stop pushing the price higher before it rises up to 1.28, even though most of the daily and weekly technical indicators are presently pointing upwards. The medium-term target is the 2014 low at 1.25.

 

Traders’ Sentiment
A significant difference between the buy and sell orders (32 percentage points) observed last week has completely disappeared—now their amounts 100 pips from the current market price are perfectly equal.

 

EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.2758 1.276 1.2727
Resistance 2 1.2727 1.2728 1.2704
Resistance 1 1.2697 1.2699 1.2689
Pivot 1.2666 1.2667 1.2666
Support 1 1.2636 1.2638 1.2643
Support 2 1.2605 1.2606 1.2628
Support 3 1.2576 1.2578 1.2605

 

GBPUSD

Although GBPUSD was expected to head towards 1.5850 without any delays, the support at 1.60 stopped the advancement and sent the pair back to the down-trend at 1.61. However, now the Sterling has to face strong selling pressure that in turn is believed to be enough to prevent extension of the rally and resume the decline. The bearish outlook is reinforced by the technical studies, especially on the weekly time-frame.

 

Traders’ Sentiment
The sentiment towards the British Pound is unchanged. Most of the traders, namely 64% of them, reckon the UK currency is likely to outperform the Buck. Meanwhile, it is worth noticing that most of the orders are placed to sell it against the Dollar– 65%.

 

GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.62 1.6208 1.6149
Resistance 2 1.6149 1.6153 1.6118
Resistance 1 1.6118 1.6126 1.6098
Pivot 1.6067 1.6071 1.6067
Support 1 1.6036 1.6044 1.6036
Support 2 1.5985 1.5989 1.6016
Support 3 1.5954 1.5962 1.5985

 

USDJPY

At the moment USDJPY is consolidating just above the support at 108, represented by the monthly pivot point and 23.6% retracement of the July-October up-move. Accordingly, if the pair manages to gain a solid foothold above this level, there is going to be a good chance of the US Dollar appreciating even further, namely to this year’s highest point at 110. Conversely, if the bears overpower the bulls, the rate may fall down to the 55-day SMA at 107.20.

 

Traders’ Sentiment
The market retain negative bias towards USDJPY—right now as many as 60% of the traders are holding short positions. However, they might get closed in the nearest future—a majority (61%) of the nearby orders are to buy the Dollar.

 

USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 108.85 108.89 108.56
Resistance 2 108.56 108.58 108.37
Resistance 1 108.36 108.4 108.26
Pivot 108.07 108.09 108.07
Support 1 107.87 107.91 107.88
Support 2 107.58 107.6 107.77
Support 3 107.37 107.41 107.58

 

USDCHF

Since USDCHF has recently hit the up-trend resistance line at 0.9550, there is a high chance of continuation of the sell-off we saw the last two trading days. However, this dip should be limited by a cluster of supports between 0.9450 and 0.94, where the 23.6% Fibo, monthly PP, 55-day SMA and weekly S1 merge. Once this demand area is reached, the Greenback will be in a good position to aim for the peak at 0.97.

 

Traders’ Sentiment
The distribution between the bulls and the bears is unchanged—58% of market participants are long and 42% are short. As for the pending orders, 59% are placed to buy and 41% to sell the US Dollar against the Swiss Franc.

 

USDCHF Pivot Levels Pivot Woodie Fibonacci
Resistance 3 0.9592 0.9592 0.9569
Resistance 2 0.9569 0.9569 0.955
Resistance 1 0.9543 0.9543 0.9539
Pivot 0.952 0.952 0.952
Support 1 0.9494 0.9494 0.9501
Support 2 0.9471 0.9471 0.949
Support 3 0.9445 0.9445 0.9471