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CURRENCIES TECHNICAL ANALYSIS October.19

Euro

The undertone for the euro was clearly positive during the night and morning trades on Thursday. Buyers led the spot to 1.1800 where they lost momentum for a while. A bout of fresh buying interest emerged in the mid-European session. As a result, the spot continued its recovery. The resistance resides at 1.1850, the support comes in at 1.1800. The EMA50 limits bulls’ further advance. If they break above the line they may continue their recovery to 1.1850. However, we do not expect the euro's further strengthening today. The major is likely to turn around and ease to 1.1780 in the coming sessions.

 

Pound

The British pound recovery stalled at 1.3200 in the early Asian session. The major spent the whole night around the level and got under selling pressure in the morning. Sellers broke 1.3200 and drove the pair to 1.3150 where the sterling spent the second part of the day. The resistance lies at 1.3200, the support comes in at 1.3100. Sellers took a breather in the mid-European session. However, the spot is in the red figures and any bout of selling pressure might force the pair to resume its downward trajectory towards 1.3100.

 

USD/JPY

The dollar momentum began to fade after touching a technical resistance at 113.00. The level rejected the spot downwards which eased to 112.50. The EMA50 and EMA100 provided some support for the US dollar which paused its decline. The resistance lies at 113.00, the support comes in at 112.00. The US dollar is still in the positive area and may continue its recovery any moment now. In this potential scenario buyers will lead the pair to 113.00 first.

 

GBP/JPY

Having failed the recovery attempt in the Asian session, the GBP/JPY pair returned to the downside. The pound sharply dropped to 148.00 in the morning and spent the first part of the day at the handle. As we see the major broke through the EMA50 and EMA100 and was stopped by the EMA200 which provided the spot some support. The resistance lies at 149.00, the support is at 148.00. Once again the EMA200 saved buyers. However, this time buyers may be not so lucky. As we see sellers are serious about breaking the 148.00 handle.  Should they lead the spot through the level they will threaten 147.00. A break below 147.00 will open the doors for a deeper decline towards the 145.00 region.

 

EUR/JPY

Buyers extended the upward trajectory up to 133.50 when a suddenly emerged selling pressure dragged the euro to 132.50. The selling momentum appeared to be short-lived. The pair just touched 132.50 and bounced back to 133.00. The resistance lies at 133.00, the support is at 132.50. As we see buyers have serious problem with moving beyond the 133.50 hurdle. The level is well defended by sellers who will not give up without a fight. We do not exclude another buyers’ attempt to regain 133.50 today. However, this scenario is unlikely to happen in the coming sessions. To our opinion, the euro is more likely to edge lower heading towards 132.00.

 

USD/CAD

A fresh wave of the US dollar selling interest keeps the spot in the red. The USD/CAD pair has been weakening the third day in a roll. Sellers regained 1.2500 and keep pushing the major lower. The resistance is at 1.2500 the support stands 1.2400. The pair now seems to be heading towards its immediate support at 1.2400.

 

DAX

DAX had a negative start to the day. The index turned bearish right after touching 13100. DAX bounced from the hurdle and soften to 13000 first and then continued its slide towards 12900. The resistance lies at 13000, the support exists at 12900. The DAX index is approaching the 12900 level now. Should that handle break down the way towards 12800 will be opened.

 

S&P500

Buyers failed to continue their advance and retreated giving the way to sellers. S&P500 sharply fell below 2650 and softened to 2550 where the benchmark remained ahead of the NY opening. The resistance lies at 2560, the support exists in at 2550. S&P500 may continue its downward trajectory todays. Sellers may drag the index to 2540 in the upcoming sessions.

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