Today's Market Outlook

Daily Forex Technicals | Written by Windsor Brokers Ltd | Oct 22 08 14:48 GMT |

EURUSD Extended bear phase from 1.4867, 22 Sep high, to reach 1.3258 low on 10 Oct, ahead of corrective bounce to 1.3769. Weakness and consolidation developed a negative formation, and the latest break below 1.3400 commenced the leg lower toward 1.2678, 1.2740 seen so far. Upside, 1.3042, 38.2% retracement of 1.3531/1.2740 decline, expected to cap. Res: 1.2981, 1.3000, 1.3042, 1.3105 Sup: 1.2815, 1.2740, 1.2700, 1.2678 GBPUSD Bounce off 1.6775, 10 Oct low, peaked at 1.7632 on 14 Oct, before renewed weakness emerged. Lower high was left at 1.7518 from where sharp falls followed, meeting 1.6201 so far. Negative short-term structure favors fresh falls, with 1.6781, 10 Oct low, capping trade for the meantime. Potential break higher will improve the tone. The latest break through 1.6534, 61.8% retracement of 1.3680/2.1162 long-term uptrend, targets 1.5609/1.5447 next. Res: 1.6600, 1.6650, 1.6730, 1.6781 Sup: 1.6201, 1.6157, 1.6065, 1.6000 USDJPY Topped out at 110.67 on 15 Aug, before forming a negative structure. Lower rejection at 97.91 on 10 Oct, led to a recovery to 103.06, before sellers reasserted for 99.26. A bear triangle formed and this was completed yesterday on a break under 100.60. This signals an initial drop to test 97.91. Medium-term head and shoulders top warns of retest of 95.77, while 100.57/87 area expected to cap. Res: 99.86, 100.08, 100.58, 100.87 Sup: 97.91, 96.86, 96.30, 95.77 USDCHF Rallied off 1.0690, 22 Sep low, to reach 1.1488 high on 06 Oct. Consolidation below there, with higher lows posted, developed a bullish continuation formation. Moving averages support the structure and break above 1.1488 commenced the next phase higher toward a projected target at 1.1850. Today's low at 1.1509 now underpins the advance. Res: 1.1703, 1.1735, 1.1786, 1.1850 Sup: 1.1524, 1.1499, 1.1475, 1.1440 Windsor Brokers Ltd http://www.windsorbrokers.biz The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.