USD/CAD intraday technical levels and trading recommendations for October 17, 2013 2013-10-17 Four months ago, a prominent bottom was established around 1.0260. This happened after the pair found a strong bearish pressure around 1.0555-1.0600, this was followed by intensive bearish momentum that led to 1.0254. An important key level was located around 1.0505. This was the key level for the last weeks movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located. The nearest support zone is located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again on Thursday, resulting in a bullish hammer weekly candlestick. Since then, the pair has been consolidating within 70 pips range between 1.0260-1.0340, untill we had a bullish breakout at the daily closure on October 8. In the absence of important economic data (and no NFPs) from the United States last week, the market focused on Canadas employment report released on Friday which lead to bearish retracement again towards 1.0340 (the most recent supply zone). Bullish momentum was expressed earlier this week untill yesterday when the pair expressed a bearish engulfing daily candlestick that brought the pair back to retest the lower limit of the ongoing channel around 1.0280. The price level around 1.0465 remains the nearest considerable resistance for the pair as long as price zone of 1.0335-1.0260 remains defended by the bulls. A valid sell entry is recommended at retesting with SL located above 1.0500. GBP/USD intraday technical levels and trading recommendations for October 17, 2013 2013-10-17 Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400, then 1.5700, where two prominent tops were established. The uptrend line around 1.5430-1.5400 applied bullish pressure on the pair, which was able to break through 1.5720, which corresponds to the August highest level and the recently established top. The market expressed obvious closure above 1.5575, which invalidated the previously mentioned H&S reversal pattern. This opened the way towards 1.6000, 1.6170, then 1.6260. It is important to note that the market expressed bearish rejection off 1.6150-1.6200, which resulted in an inverted hammer weekly candlestick. That is why, a bearish movement was expected to take place during the last week provided that the bears contimue defending the weekly high at 1.6150. However, lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short time until bearish domination came back into the market. Failure to break down 1.5950. Instead, fixation above the price level of 1.5950 opened the way back towards 1.6160-1.6175. However, the early breakdown of 1.5950 will enable the bears to initiate a bearish swing towards 1.5900, then 1.5800 probably. The pair probably established a Head-and-Shoulders reversal pattern, where the right shoulder is located around 1.6150, thus providing a valid sell entry on retesting after breakdown of 1.5950 ( neck-line) with SL located above 1.6220. USD/CHF technical analysis for October 18, 2013 2013-10-18 Overview: Pair: USD/CHF. The price is probably going to form strong support at 0.9159 (below 61.8% of Fibonacci retracement levels in the H4 chart). It formed the last bearish wave for the last week, and the level of 0.9159 acts as strong resistance. Thus, it should be noted that the level of 0.9440 is strong resistance (Note: support became resistance as well as the ratio of 78% of Fibonacci equals 0.9443). The saturation is likely to take place around 0.8980, because this level is also the first strong support on October 18, 2013. A double bottom will be set at the level of 0.8967. Therefore, it is possible that the market will start showing bullish signs. The daily support is set at the level of 0.8980. In other words, buy deals are recommended above 0.8980/0.8967 with the first target seen at the 0.9050 level and further, at the 0.9122 level. A stop loss should be placed at 0.8945. NZD/USD technical analysis for October 18, 2013 2013-10-18 Trading recommendations: Pair: NZD/USD Date:18/10/2013 According to the previous events, the price has still been trapped between 0.8500 and 0.8450. Long buying: Buy above 0.8300 with the first target of 0.8450, it might resume to 0.8540. Short selling: Outlook -1-: Swing trade at 0.8550 in order to sell with a traget of 0.8460. Outlook -2-: The area below 0.8450 looks for further downside with 0.8370 and 0.8295 as targets. Notes: It should be noted that the market will call for bearish market from the level of 0.8550. Range: 88 pips. Risk of 88 pips must make a profit of 132.00 (A risk to reward ratio of 1:1.5 is recommended). Intraday technical levels: Resistance: 0.8585 Support: 0.8296 GBPCHF creates a higher low around 1.45 2013-10-18 Technical outlook and chart setups: The currency pair is holding the 1.45 levels well till now. A higher low was formed yesterday just shy of the above level. It is recommended to hold long positions for now and add the remaining at around the 1.44 levels. As depicted here, support begins from the 1.4200 levels, followed by 1.4075; while resistance is at 1.48, followed by 1.5 respectively. The current rally extensions are pointing at the 1.49 levels from here on. That would be the price where the 0.618 fibonacci retracement of the entire fall from 1.54 to the 1.4 levels is also converging. We would be looking for going short around the 1.49 levels. Trading recommendations: Remain partly long, and add at 1.44, set stop below 1.43, target is at 1.49 Good luck! EURJPY may be looking to fall/retrace from 1.33/34. Exit long positions 2013-10-18 Technical outlook and chart setups: The currency pair looks to be poised to print higher highs according to current wave structure. But a retracement looks to be due before rallying further ahead. It is recommended to exit long positions for now. Aggressive traders might want to go short, risk is at the 135.20 levels. Prices maybe looking to retrace, at least, towards the 132.00/50 area for now. Intermediary support is at 131.00, followed by 129.00, 128.00 and lower; while resistance is at 135.00 respectively. Please note that the pair may be preparing to fall below the 131.00 levels as well. Looking lower at least for now. Trading tecommendations: Exit long positions for now. Aggressive trading setup would be to go short with a stop above 135.20/30. Good luck! Gold rallies to the 1,320.00 area. Exit long positions now 2013-10-18 Technical outlook and chart setups: The metal has rallied to the 1,310/20 levels as expected. It is quite possible that this rally extends to the 1,350/60 levels but after a retracement/pullback. It is, therefore, recommended to exit long positions taken earlier. Resistance levels are lined up from the 1,330.00 levels, followed by 1,350.00, 1,375.00 and 1,440.00; while supports begin from the 1,210.00 levels, followed by 1,180.00 respectively. The overall structure still indicates that a fresh low below 1,180.00 remains possible. Keeping this in view, an aggressive trade setup would be to initiate 50% capacity into short positions, risk is 1,375.00. If the metal does not break the 1,250.00 levels in the near term, an impressive rally would materialize. Trading recommendations: Exit long positions for now, initiate short positions in small quantity, set stop at 1,375.00. Good luck! Silver rallies as expected. 22.50 is immediate resistance. Exit long positions 2013-10-18 Technical outlook and chart setups: The metal has bounced off from a series of convergence as depicted in the chart. The rising trendline, the fibonacci 0.618 retracement level, the past resistance turned support. It is recommended to exit long positions for now and await for the next clarification in the wave structure. Immediate resistance is at 22.50, followed by 23.50 and 25.00; while initial support begins at 20.50, followed by 19.00 and 18.00 respectively. If the rising trendline breaks down, the metal would be heading towards fresh lows; on the flip side, a break of resistance at 22.50 and at 23.50 would confirm a continued rally. At the moment, keeping the larger trend in view (downward), selling rallies should be preferred. Trading recommendations: Exit long positions for now. Initiate small quantities in short positions, stop is at 23.50. Good luck!
Posted on: Fri, 18 Oct 2013 07:35:22 +0000
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