Resistance: 1.3536 minor / 1.3568 moderate / 1.3587 minor
Support: 1.3496 moderate / 1.3461 moderate / 1.3445 moderate
Euro saw a false breakout of its range play for the past two weeks at the open of European markets. In the end we pushed back under 1.3568 with a ‘gravestone doji’ for a daily candle. Among indicators we are seeing a confluence of bears with stochastic flat below the signal line and macd’s the same flat just under the signal line suggesting bias is for the sell side. In the 4H levels we have stochastic in oversold areas while macd also has a new bear cross. Hourly charts for their part has stochastic poised to push oversold and macd’s just dropping through the zero line. For now we are looking to ease to the congestion floor at 1.3461 though projected lows suggests a possible bearish break, the number at 1.3455. Consider shorts on a break of S1 in pivots at 1.3496 or coming off the congestion resistance in New York pm trade.
Resistance: 1.6202moderate / 1.6226 minor / 1.6260 moderate
support: 1.6162 moderate / 1.6131 moderate / 1.6095 minor
After the early surged as the US government teetered into a shutdown Cable eventually eased off as for a ‘shooting star’in the daily candlesticks suggesting risk of a pullback. Note yesterdays numbers showed UK CIPS Manufacturing PMI at 56.7 short of the 57.5 consensus and previous read. From indicators we have daily stochastic coming off overbought areas while macd’s are at risk of a bear cross after flattening out despite recent gains in prices. In the lower time frames we are seeing sell signals with 4H stochastic in oversold areas while macd has crossed lower, hourly charts also has stochastic oversold and macd looking to push under the zero line. With the push through yesterdays lows we already have an ongoing mean reversion play the next entry a break of the 1.6162 support, S1 from daily pivots. Projected lows puts us with 1.6106 just above the minor support at 1.6095 though the 21D EMA is all the way down to the psychological 1.6000 area.
Resistance: 0.9410 minor / 0.9455 moderate / 0.9500 psychological
Support: 0.9371 moderate / 0.9354 minor / 0.9308 moderate
Following the RBA’s omission of any reference on potential easing in its statement we had Aussy rallying strongly Tuesday seeing twice the average daily range. From our charts we have a bounce of the 38.2 Fib retracement level for the September rally and the daily EMA lines. Indicators still show mixed directions though bias is for the up side as stochastic comes out of oversold levels while daily macd has bottomed out looking to cross backup following a bubble. In intraday charts we have stochastic coming off overbought levels from the 4H picture while macd is rising and we have candlesticks consolidating just above the 38.2 Fib retracement level for yesterdays rally. Hourly charts for their part has a confluence of bears. For now we prefer looking for a buy on dips to the daily pivot at 0.9371 though a push through 0.9410 could also be seen as a bullish entry.
Resistance: 132.74 moderate / 133.17 moderate / 133.48 minor
Support: 132.31 minor / 132.01 moderate / 131.64 moderate
Tuesday saw EURJPY ease off to close under the lower half of the preceding candlesticks real body, our move taking prices back inside the daily EMA lines. Daily indicators are mixed with a bearish macd and stochastic heading up. Note we are in a counter trend for the daily higher highs and higher lows from August. in the lower time frames we have a bearish view with 4H stochastic in oversold levels and macd crossing lower below zero while price action shows long wicks in 4H charts or bearish engulfing real bodies. Hourly charts has a new confluence of bears with stochastic just crossing lower. For now we prefer looking for shorts on a break of 132.33 our minor support. Alternative entry will becoming off the 132.74 daily central pivot.