Intraday technical levels and trading recommendations on EUR/USD for October 31, 2014

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Two weeks ago, the EUR/USD pair looked oversold before the bullish engulfing daily candlestick emerged off price level of 1.2500 one month ago.

The upper limit of the movement channel (1.2880-1.2900) was targeted. However, bearish pressure was applied earlier around 1.2800-1.2840.

A bearish breakout off the bullish channel took place shortly after. Thus, confirming a Flag continuation pattern. Initial daily target level was located around 1.2490.

Since no fixation above 1.2760-1.2780 took place on a daily basis, the EUR/USD pair remained under bearish pressure.

Now we can see another possible continuation pattern. A Head and Shoulders pattern to be watched on daily basis. Obvious daily closure below 1.2490 ( the origin of the previous bullish swing expressed one month ago ) can theoretically extend the bearish targets towards price level of 1.2200.

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Last week on Wednesday, the market expressed quite strong bearish momentum that pushed below the lower limit of the previous bullish channel.

As depicted on the chart, the EUR/USD pair has respected the limits of the current bearish channel.

As anticipated, Price levels around 1.2750 ( upper limit of the channel ) provided a valid SELL entry. Quick decline took place towards price level of 1.2500 where the lower limit and the origin of the recent bullish swing is located.

Recommendation:

The SELL entry anticipated around 1.2730-1.2760 is running in profits now. Stop Loss can be lowered to 1.2640 and partial exit can be considered to secure some of the achieved profits.

Daily closure below 1.2500 can give another SELL signal for risky traders. Stop Loss to be set as daily closure again above the entry levels with target levels located at 1.2440 then 1.2370.

The material has been provided by InstaForex Company – www.instaforex.com

Technical analysis of USD/CAD for October 31, 2014

General overview for 31/10/2014 08:30 CET

The market has broken above the golden trend line but it does not looks like an impulsive breakout yet. To confirm more upward wave progression, the bulls would have to move the price above the weekly pivot at the level of 1.1240 and then hit the intraday resistance at the level of 1.1295. Any breakout higher above this key level would be the strongest clue that the bullish trend is resuming. On the other hand, any breakout below the intraday support at the level of 1.1164 will put the demand zone to immediate test.

Support/Resistance:

1.1070 – 1.1080 – Demand Zone 

1.1074 – WS3 

1.1128 – WS2 

1.1164 – Intraday Support 

1.1185 – WS1 

1.1240 – Weekly Pivot 

1.1262 – Intraday Resistance 

1.1292 – Intraday Resistance|Key Level for Bears| 

1.1295 – WR1 

1.1351 – WR2 

1.1384 – Swing High

Trading recommendations:

The situation has not changed since yesterday much and the buy orders opened yesterday should be still kept open. SL for those orders should be now moved higher above the level of 1.1100. Any breakout above the level of 1.1220 provides further opportunity to add more buy orders with the same SL and TP levels as before

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Technical analysis of GBP/USD for October 31, 2014

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Trading recommendations
  • According to the previous events, the price of the GBP/USD pair has still moved between the prices 1.5990 and 1.5947. The level of 1.5994 represents the weekly pivot point. It should be noted that the weekly pivot point coincides with the ratio of 38.2% Fibonacci retracement levels. Hence, the new resistance has set at the level of 1.5994; for that sell below 1.5994 in the long term with the first target of 1.5947 in order to test the double bottom; it might resume to 1.5910 (near of support area) if the trend will be able to break the double bottom at 1.5947. The stop loss should never exceed your maximum exposure amounts. Thus, it will be rather profitable to set your stop loss at the level of 1.6053.
Intraday technical levels:
Date :31/10/2014 
Pair:GBP/USD 
  • R3: 1.6132
  • R2: 1.6084
  • R1: 1.6045
  • PP: 1.5997
  • S1: 1.5958
  • S2: 1.5910
  • S3: 1.5871

The material has been provided by InstaForex Company – www.instaforex.com

Technical analysis of Gold for October 31, 2014

Technical outlook and chart setups:

Gold has dropped below our expectations towards $1,198.00 levels yesterday. Please note that the metal is at a confluence of fibonacci 0.786 support and back side of the resistance line (that is support now). A bullish reversal here is still expected and it is recommended to hold long positions it taken yesterday, risk remains below $1,183.00. Support is seen at $1,183.00, while resistance is seen at $1,235.00, followed by $1,255.00 (interim), $1,275.00 and higher respectively. It looks like the pullback from $1,255.00 is over and prices could turn higher from here on. 

Trading recommendations:

Remain long, stop at $1,179.00, target is open.

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com