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Technical Analysis Oct.7th

by on October 7, 2014 7:07 am GMT
 

EURUSD

The currency pair has found a strong support zone near 1.25 and retreated back to the negatively-sloped trend-line at 1.2660, which has been keeping the bearish tendency intact for the past two months. Accordingly, the upward correction is highly unlikely to extend higher. Instead the price is expected to descend to 1.24, where it is going to test a support area created by the weekly and monthly S1 levels.

 

Traders’ Sentiment
There is even less difference between the longs and shorts in the market than yesterday, as it contracted from ten percentage points to only four. At the same time the share of sell orders declined from 78 to 56%.
EURUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.2871 1.2887 1.2773
Resistance 2 1.2773 1.2781 1.2711
Resistance 1 1.2708 1.2724 1.2672
Pivot 1.261 1.2618 1.261
Support 1 1.2545 1.2561 1.2548
Support 2 1.2447 1.2455 1.2509
Support 3 1.2382 1.2398 1.2447

GBPUSD

Despite strong downward momentum the Cable exhibited last Friday, its attempt to break the support at 1.5976/60, represented by the monthly S1 and a lower Bollinger band, did not succeed. Right now GBPUSD is trading near the resistance at 1.6050, but there is a significant chance of the rate rising up to 1.62, namely the three-month falling trend-line, before the bears regain control of the market.

 

Traders’ Sentiment
The market remains moderately bullish towards the Great British Pound, considering that 59% of open positions are long. Concerning the orders, 58% of them are set to acquire the Sterling against the U.S. Dollar.
GBPUSD Pivot Levels Pivot Woodie Fibonacci
Resistance 3 1.6268 1.6282 1.6183
Resistance 2 1.6183 1.619 1.613
Resistance 1 1.6129 1.6143 1.6097
Pivot 1.6044 1.6051 1.6044
Support 1 1.5989 1.6003 1.5991
Support 2 1.5905 1.5912 1.5958
Support 3 1.585 1.5864 1.5905

USDJPY

As it turned out, USDJPY is still in a consolidation phase, since the pair failed to cross the 110 mark and approach the 2008’s maximum. However, the sell-off should soon give way for a rally, being that the price has already reached the up-trend at 108.50 and the technical indicators are mostly giving ‘buy’ signals. But if the demand here turns to be insufficient, the bulls will have another opportunity to recover at 108.

 

Traders’ Sentiment
The bears preserve a slight advantage over the bulls—the former take up 58% of the whole market. On the other hand, there is a large number of buy orders placed 100 pips from the spot price—66%.
USDJPY Pivot Levels Pivot Woodie Fibonacci
Resistance 3 110.73 110.61 110.27
Resistance 2 110.27 110.21 109.83
Resistance 1 109.57 109.45 109.55
Pivot 109.11 109.05 109.11
Support 1 108.41 108.29 108.67
Support 2 107.95 107.89 108.39
Support 3 107.25 107.13 107.95

USDCHF

After a test of the monthly R1 the selling pressure forced the U.S. Dollar to retreat behind the weekly PP, even though the near-term technical studies favoured the currency. Now the pair is supported by the weekly S1 at 0.9548, but we should not rule out dips to 0.9450—the current location of the up-trend that has been respected by the market since mid-August. Any fluctuations above this level are not considered dangerous for the overall outlook.

 

Traders’ Sentiment
The bullish market participants keep outnumbering the traders who expect the Greenback to underperform. At the momentum their share amounts to 63%. In the meantime, the percentage of buy orders fell from 77 to 55%.
USDCHF Pivot Levels Pivot Woodie Fibonacci
Resistance 3 0.9768 0.9758 0.9723
Resistance 2 0.9723 0.9718 0.9681
Resistance 1 0.9657 0.9647 0.9654
Pivot 0.9612 0.9607 0.9612
Support 1 0.9546 0.9536 0.957
Support 2 0.9501 0.9496 0.9543
Support 3 0.9435 0.9425 0.9501