Daily Technical Round-up: EURUSD gaining momentum

Michael Baker, Tuesday, 8 October 2019

Technical Analysis


Pivot: 1.2304

Scenario 1: Small rotation down in yesterday's trading skews us to the downside. A move below 1.2276/65 then it's possible we could see a move to 1.2211/.2196. This area is the short-term strong support, below we look for the 76.8% fib at 1.2092 and then the yearly lows @ 1.1958.

Scenario 2: Gaining solid ground above recent weekly pivots between 1.2317/54. 50% fib @ 1.2393 breached recently but couldn't hold above for long, if this happens then weekly highs @ 1.2413 may come under pressure. Valid trend resistance coincides with multiple fibs between 1.2505/26. September high at 1.2581 and further pushes look for 1.2661/72 which includes a untouched 50% fib.

Chart: Four-hour chart showing fib retracements to the upside.



Pivot: 1.0977

Scenario 1: Still holding above 1.0965/58 and last week's pivot. Momentum gaining on a possible push to test 23.6% fib and overcome trend resistance @ 1.1002/05. Daily resistance between 1.1025/32 followed by another period of daily highs and a 38.2% fib between 1.1068/82. Strong resistance since end of August up to 1.1109. 50% fib @ 1.1145.

Scenario 2: Back below 1.0965/41 then the yearly lows are back in contention at 1.0879. Below here is a multi-week low between 1.0831/39 which sits above a 78.6% fib at 1.0815.

Chart: 30-min chart showing we have been in a tight range since 3 October, looking to push out either way.


Germany 30

Pivot: 12,063

Scenario 1: Challenging the weekly pivot which gives bulls hope of a further push. 12,142/162 has offered resistance and held yesterday's highs, look for a possible move to 12,269/304 if market gains traction. Multi-month resistance @ 12,497.

Scenario 2: Pushing further away from 11,882/21, indices capable of moving quickly so this area remains pivotal to the downside. Below here is a 61.8% at 11,737. 11,693 is a pivotal area that has seen a lot of attention of over the years. Likely to break a trend support at 11,640 if we see further moves south.

Chart: 30-min chart showing fib retracement from the 1 to 3 October, with the 50% fib holding yesterday's move higher.


Wall Street

Pivot: 26,505

Scenario 1: Pushing towards the breakdown area and 61.8% fib @ 26,714. We have retreated a little but signs are still strong that we may overcome this latest obstacle. Areas of resistance above around 26,799/844 and then the 76.8% fib @ 26,981. Daily resistance around 27,000 shows sellers around the psychological whole number.

Scenario 2: Short-term support between 26,458/418, a break here then we may push back down to 26,371. 26,288 is a resistance turned support, below here we have 26,161 and then double daily low at 26,090. Recent lows are @ 25,733. 28 August low not much further @ 25,629. August lows are at 25,073 with strong buying and volatile price action occurring all the way up to 25,500.

Chart: Four-hour chart shows push for the 61.8% fib. Not quite reaching there as buyers look to start forming another base for attack. 

8 Dow

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