Technical Analysis 27-10-2016

EUR/USD
The pair broke the 1.0900 resistance level and headed straight for the 1.0950 resistance level but bulls where stopped in their tracks as we saw bargain hunting bears enter the market, driving prices back to the 1.0900 support level. 1.0900 has held up for now and we are likely to see the pair retry 1.0925, 1.0950 and 1.0975 if bulls can protect the 1.0900 level. However, if bears can capture 1.0900, we will see the medium term down trend continue as they target 1.0875, 1.0850 and 1.0825.

USDJPY
Bulls are still in control after having protected 104.00 with skill as we now see the pair trade above 104.50 where the battle for power is taking place. Should bulls hold on to 104.50, we would see them target 104.75, 105.00 and 105.25 as they try turn the longer term tide. However, should bears manage to capture 104.50, we would see the target 104.25 and 104.00 where we expect more reserves to enter the field as the key level is challenged.

AUDUSD
Bears refused access beyond 0.7700 and defended the level well as we see price now trading back below 0.7625 as the EMA`s are tested once more. The trend is still bullish and with the key level of support and the stochastics in oversold levels, we might just see the pair bounce north from here with target at 0.7650, 0.7675 and 0.7700. However, should bears capture 0.7600, closing below the EMA`s, we could see further downside as bears retake the reigns, aiming for 0.7575, 0.7550 and 0.7525.

GOLD
Gold peaked at the 1275 level as bulls could do little more to overpower the bears, who took control mid-day to drive price back to the key support at 1265. Since then the precious metal has stabilized and pushed north as we see bulls manage to close beyond the H1 100 and 200 EMA`s which is a signal of higher prices to come with resistance at 1270, 1275 and 1280. However, should bears manage to close below 1265, we will see bulls begin to fade as bearish pressure intensifies and the precious metal heads south to 1260, 1255 and 1250.

 

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