Technical Analysis for Crosses

Daily Forex Technicals | Written by Crown Forex | Oct 14 08 06:00 GMT |

EUR/JPY

As confidence somewhat was restored in the markets after the governmental bailout plans, risk helped send the EUR/JPY pair to higher levels yet it lacks enough bullish momentum to breach the 74.6% correction at 140.37 for the long term ascending channel. This level is also supported by the 50 day moving average on the four hour chart. We see signs of divergence on the ADX indicator on the four hour charts supporting the downside direction alongside the pair being overbought on the stochastic indicator. Any downside correction witnessed today will be weak where the 139.00-139.10 support level will be able to halt further losses. However, we should note that the mentioned descending channel is forming the fourth leg in an Elliot Wave where if the mentioned level results in the pair to reverse to the downside, it could perhaps extend the final leg to 130.54 levels to complete the wave on the long term.

Support: 139.47, 139.03, 138.69, 138.47, 137.91
Resistance: 140.37, 141.00, 141.55, 141.89, 142.26
GBP/JPY

Trading today for the pair could be of high volatility as we see the need for a downside correction on the four hour charts but with direction indicators still somewhat supporting the neutral trend with tendency to the upside. The 50 day moving average on the four hour chart is limiting further downside movements at the 178.30s level while the 14 day moving average on the daily charts at 179.40s is stopping the pair from extending its gains.

Support: 178.80, 178.31, 177.82, 177.34, 176.85
Resistance: 180.19, 180.73, 181.12, 181.37, 181.65
EUR/GBP

The pair yesterday failed to breach the major resistance on the trend line at 0.7975 sending it to the downside to end the day at the 0.7824 level; where today it has failed to breach it in the morning resulting in further losses as the pair is currently testing the 23.6% correction for the long term ascending channel at 0.7796 where it has been providing a good support for the pair allowing it to rebound rather than extend its losses to 0.7783 and then 0.7770s. We see the pair being slightly oversold on the four hour chart but we don't expect to see an upside correction as technical indicators support the neutral trend.

Support: 0.7796, 0.7783, 0.7771, 0.7762, 0.7749
Resistance: 0.7811, 0.7824, 0.7838, 0.7846, 0.7858

Crown Forex

disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.

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