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Technical Analysis Oct.31st

by on October 31, 2014 7:19 am GMT
 

EURUSD

It seems that the EURUSD cross resumed its long-term downward trend, since it declined further yesterday and surpassed the major level at 1.26. Moreover, the weekly S1 at 1.2579 appeared to be a rather weak support line and the pair closed below it. The next considerable demand area is located at 1.25 (2014 low) and bulls will use this opportunity to reverse the pair, as they did it on October 6. Daily technical indicators, however, still give mixed outlook for the Euro and weekly ones point to the south.

 

Traders’ Sentiment
Even though the market sentiment became more bullish during past 24 hours (57% of all positions are long), pending orders both in 50 and 100-pip ranges deteriorated to the levels seen five days ago.

 

EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.273 1.2738 1.2682
Resistance 2 1.2682 1.2686 1.2649
Resistance 1 1.2645 1.2653 1.2629
Pivot 1.2596 1.26 1.2596
Support 1 1.2559 1.2567 1.2563
Support 2 1.2511 1.2515 1.2543
Support 3 1.2474 1.2482 1.2511

 

GBPUSD

Bearish trend continued to prevail on the market for GBPUSD currency pair on Thursday, as it went further to the downside and neared a significant support line at 1.5962, represented by monthly S1 and strengthened by the Bollinger band. At the same time, if the pair decides to fall even lower, it will face both 2013 Q4 and 2014 lows, which are located less than 100 pips away from current price. If the monthly support holds bearish pressure, then we can expect the Pound to advance at least up to 20-day SMA at 1.6062.

 

Traders’ Sentiment
Traders’ perceptions of the pair’s future development changed slightly to the bearish side, as 65% of them are holding long positions on the Pound, compared to 68% one day ago.

 

GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.6128 1.6128 1.6083
Resistance 2 1.6083 1.6083 1.605
Resistance 1 1.6041 1.6041 1.6029
Pivot 1.5996 1.5996 1.5996
Support 1 1.5954 1.5954 1.5963
Support 2 1.5909 1.5909 1.5942
Support 3 1.5867 1.5867 1.5909

 

USDJPY

The Japanese currency unexpectedly lost very noticeable value during last 24 hours, as it dropped more than 220 pips to reach the monthly resistance line at 111.63 on news from the Bank of Japan. The pair climbed through a number of strong supply areas, including 2014 and 2008 highs. If the pair surpasses the next resistance, it may jump up to monthly R2 at 113.61. Otherwise, the Dollar is set to make a step back and trade below the six-year high.

 

Traders’ Sentiment
While opened positions are still dominated by bears (67%), pending orders both in 50 and 100-pips ranges surged considerably, as now 83% of latter ones are set to buy the Dollar versus the Japanese yen, compared just to 62% on Thursday.

 

USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 110.2 110.24 109.83
Resistance 2 109.83 109.85 109.57
Resistance 1 109.53 109.57 109.42
Pivot 109.16 109.18 109.16
Support 1 108.86 108.9 108.9
Support 2 108.49 108.51 108.75
Support 3 108.19 108.23 108.49

 

USDCHF

The Swiss currency continued to weaken versus the US Dollar, but the currency cross stopped rising in value after reaching the Bollinger band at 0.9613. This level is placed just below the up-trend, which is reinforced by weekly R2 at 0.9652. The USDCHF pair is likely to have some issues with crossing these levels; however, if the testing is successful, it may grow up to October high and monthly resistance around 0.97. In case of failure, the Dollar will be at risk of the decline down to the weekly pivot point below 0.95.

 

Traders’ Sentiment
Bulls continue have the majority of opened positions (53%), while pending orders improved to become positive in the last 24 hours, as 56% of them in 100-pips range are now set to by the US Dollar.

 

USDCHF Pivot Levels Pivot Woodie Fibonacci
Resistance 3 0.9667 0.9661 0.9639
Resistance 2 0.9639 0.9636 0.9613
Resistance 1 0.96 0.9594 0.9597
Pivot 0.9572 0.9569 0.9572
Support 1 0.9534 0.9528 0.9547
Support 2 0.9506 0.9503 0.9531
Support 3 0.9467 0.9461 0.9506