GBP/USD intraday technical levels and trading recommendations for October 20, 2014



On July 15, extensive bearish impulse was initiated. Since then, the GBP/USD pair has been moving downwards below the depicted downtrend line.

Many bearish impulses were previously initiated around 1.7180, 1.6630 and 1.6400 where the downtrend line came to meet the pair then.

The price zone of 1.6140 – 1.6100 constituted a weekly support that paused the bearish movement for a few days after September 9. However, the bears quickly managed to push below the price level of 1.6060.

A new bearish impulse was applied after retracement towards the price zone of 1.6350-1.6400 took place.

As suggested, price level of 1.5890 provided evident bullish recovery. A bullish engulfing daily candlestick emerged.

Since last week, the bulls were pushing towards the downtrend line (price zone around 1.6110) where another bearish swing is anticipated.

On the other hand, bullish fixtation above 1.6120 will liberate a strong bullish swing towards 1.6250 initially.

Trading recommendations:

Conservative traders should wait for bullish breakout above 1.6110 ( the depicted trend line ). It indicates a valid BUY entry towards 1.6250 and 1.6310. Stop Loss should be located below 1.6040.

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USD/CAD intraday technical levels and trading recommendations for October 20, 2014



Two months ago, the ongoing bearish swing (initiated in March 2014) was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.

A bullish breakout off the movement channel took place in August. This enabled a bullish Flag pattern to be established. Bullish targets were successfully hit, including price level of 1.1230 and recently 1.1289.

As mentioned before, breaching the price zone of 1.1230-1.1260 and fixation above it triggered new bullish swing. Strong bullish momentum has been expressed for a couple of weeks.  

Few days ago, the USD/CAD pair tested the upper limit of a steeper bullish channel depicted on the chart. This corresponded to price level of 1.1370. Bearish rejection was anticipated after such a long bullish swing.

Bearish correction occurred towards 1.1260 as expected. This is manifested in the resulting daily candlesticks which indicate strong bearish rejection around 1.1330-1.1350.


The USD/CAD pair looked overbought on the daily chart. The bulls were pushing beyond the upper limit of the movement channel. Conservative traders were looking for short positions at such high prices as suggested.

Price zone of 1.1370-1.1390 was recommended as a valid SELL entry with SL located just above 1.1400. This position is running in profits now.

On the other hand, a break below 1.1230 ( previous prominent top and 50% Fibonacci level ) indicates another SELL entry with higher risk. Initial targets are located at 1.1180-1.1160. 

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EUR/NZD analysis for October 20, 2014




our last analysis, EUR/NZD has been trading downwards. As we
expected, the price tested the level of 1.6026. Since we got strong
rejection from our resistance level at the price of 1.6230б it is still
very risky to buy. I have placed Fibonacci expansion from the most
recent swings to find support levels. I got Fibonacci expanson 61.8%
at the price of 1.5980. If the price breaks the level of 1.5980
(Fibonacci expansion 61.8%), we may see testing the level of
1.5810 (Fibonacci expansion 100%). Be careful when buying and watch
for potential selling opportunities after retracement. According to
the daily time frame, we can observe weak demand in a volume below
the average.

Fibonacci pivot levels:









Be careful when buying the EUR/NZD pair since we may
see short-term bearish continuation.

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Gold : analysis for October 20, 2014




Since our
last analysis, gold has been trading sideways around the price of
1,245.00. We are still waiting for larger volume and stronger price
action. Our submajor Fibonacci retracement 38.2% at the price of
1,245.00 is again on the testб so be careful when buying gold. If the
price breaks the level of 1,245.00 in a high volume, we may see
potential testing the level of 1,262.00 (major Fibonacci retracement
38.2%). According to the 4H time frame, we can observe sideways
movement in aт average volume. . Be careful when buying and watch for
potential selling opportunities. Any larger supply may confirm futher
bearish movement.

Daily pivot
Fibonacci points:


R1: 1,239.08

R2: 1,240.42

R3: 1,242.60

Support levels

S1: 1,234.72

S2: 1,233.38

S3: 1,231.20

Buying still looks risky since gold is near
resistance level.

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#USDX Technical analysis for October 20, 2014

The Dollar index remains inside the long-term upward sloping price channel but the short-term trend has reversed and a pull back has started. Price is trending lower with lower highs and lower lows. Support at 84 is the first big test for Dollar bulls. 


Price remains below the Ichimoku cloud in the 4 hour chart so trend remains bearish. The bounce off the lower channel boundaries should be short-lived as price is expected to find strong resistance at the downward sloping Ichimoku cloud near 85.50. The rejection expected at that area should push the Dollar index towards 84 to complete the downward correction.


In the daily chart we see the downward reversal unfolding and price remains below the resistance trend line while the tenkan-sen is about to cross the kijun-sen which in Ichimoku cloud terms this is a bearish signal. This could signal the final push towards the 38% retracement or even lower towards the cloud support at 83.70. In generall I believe the longer-term trend will remain  bullish and since the Dollar index has broken out of important weekly and monthly resistance levels, any pull back should be seen as a buy opportunity.

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Gold technical analysis for October 20, 2014

Gold price remains in short-term up trend and inside the upward corrective bounce that started at $1,181. Longer-term trend remains bearish and our longer-term target is now slightly lifted inside the area of $1,150-$1,050. 


Red line= resistance

Blue line =support

Gold price remains below the Ichimoku cloud in the daily chart. Gold price is soon expected to make a downward reversal that will eventually break $1,180 and start the final downward move towards $1,150 or $1,050. If the upward bounce continues, we could see Gold price reach the resistance of $1,280 before reversing lower.


Blue lines =support

Gold price is making higher highs and higher lows since last Friday’s low near $1,234. This could be the start of the final upward bounce towards $1,260-65 as long as price holds above short-term support of $1,234. Breaking below that support level will push price towards $1,220-15 support area. In general I’m longer-term bearish targeting $1,050.

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Daily analysis of major pairs for October 20, 2014

EUR/USD: The situation on the Greenback was the major
determinant of the overall market directions last week. The EUR/USD has finally
succeeded in going bullish. This has left a Bullish Confirmation Pattern in the
chart, and the price is much more likely to go further upwards towards the
resistance line at 1.2900.


USD/CHF: Since
the USD has become weak, the outlook on the USD/CHF has been bearish. The price
is more likely to test the support level at 0.9350 this week, for this is the
weekly target. However, attention should be paid to the high volatility in the
market (and in the Forex market generally). The high volatility is usually
characterized by large upswings and downswings, and therefore, this should be
considered when trading.


GBP/USD:  The Cable is also making genuine bullish
attempts, which can render the recent bearish scenario completely invalid. The
price is already going up, and the overall bias would turn bullish immediately
the price crosses the distribution territory at 1.6200 to the upside.


pair closed at 106.89 on Friday, October 17, 2014. The price trended downwards
last week, but the bull is now making some effort to push the price upwards.
Nevertheless, the dominant bias remains bearish until the supply level at 107.50
is breached to the upside.


EUR/JPY:  This cross is also making some serious effort
to go upwards in the context of an overall downtrend. From the demand zone at
134.50, the price has gone upwards; and a movement above the supply zone at
137.00 would mean the end of the bearish outlook.  

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