Currency Zone

Wednesday, October 31, 2018     

Daily technical strategies 

EUR/USD USD/JPY GBP/USD EUR/GBP USD/ZAR

EUR/USD Intraday: capped by a negative trend line.
Pivot: 1.1365

Our preference: short positions below 1.1365 with targets at 1.1335 & 1.1300 in extension.

Alternative scenario: above 1.1365 look for further upside with 1.1385 & 1.1415 as targets.

Comment: a break below 1.1335 would trigger a drop towards 1.1300.

USD/JPY Intraday: supported by a rising trend line.
Pivot: 112.90

Our preference: long positions above 112.90 with targets at 113.40 & 113.70 in extension.

Alternative scenario: below 112.90 look for further downside with 112.65 & 112.40 as targets.

Comment: the RSI is bullish and calls for further advance.

GBP/USD Intraday: under pressure.
Pivot: 1.2755

Our preference: short positions below 1.2755 with targets at 1.2690 & 1.2660 in extension.

Alternative scenario: above 1.2755 look for further upside with 1.2790 & 1.2810 as targets.

Comment: as long as the resistance at 1.2755 is not surpassed, the risk of the break below 1.2690 remains high. 

EUR/GBP Intraday: the bias remains bullish.
Pivot: 0.8910

Our preference: long positions above 0.8910 with targets at 0.8940 & 0.8955 in extension.

Alternative scenario: below 0.8910 look for further downside with 0.8895 & 0.8880 as targets.

Comment: the RSI is mixed to bullish.

USD/ZAR intraday: the upside prevails as long as 14.5640 is support
Our pivot point stands at 14.5640.

Our preference: the upside prevails as long as 14.5640 is support.

Alternative scenario: the downside breakout of 14.5640 would call for 14.4730 and 14.4190.

Comment: the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the pair is above its 20 and 50 MAs (respectively at 14.6275 and 14.6341).