Dailyfx | Oct 27, 2014 11:10AM ET
Charts Created using Marketscope – Prepared by Kristian Kerr
Instrument |
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Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
USD/JPY |
*105.90 |
107.15 |
107.90 |
*108.20 |
108.70 |
Charts Created using Markets cope – Prepared by Kristian Kerr
Instrument |
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Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
XAU/USD |
1217 |
1224 |
1230 |
*1251 |
1264 |
I was looking for choppy to higher trading in EUR/USD during the month of October and I think it is fair to say we have gotten it. The time has come, however, to start looking for a resumption of the broader downtrend. My work with cycles and other timing methods suggests the correction is close to running its course and the exchange rate should turn down this week or next week at the latest. A convergence of the 78.6% retracement of the month-to date range and the 1x1 Gann angle line drawn off the year’s low suggests 1.2585 is an important downside pivot to watch over the next few days. Traction under this level should confirm a resumption of the downtrend in place since May and set the stage for a fairly steady decline into December. Should the Fed surprise this week, the euro would obviously extend its correction a bit longer, but even this looks like it would be limited to next week on a cycle basis. Key resistance looks to be 1.2835.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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