Certain success of bears is to be recorded | 18 October 2013

EUR/USD

Monthly chart: it is close to rally of ADX; Bollinger is set to test1.3711. In its turn, this resistance is the only level, which prevents bulls from growing to 1.4285.



Certain success of bears is to be recorded



Weekly chart: resistance is mounting, but here ADX has already been formed. Wait for a breakthrough?

Certain success of bears is to be recorded



Daily chart: bears need O&U (that would ensure dropping under the final local bottom and a new High for bulls – any price above 1.3645). Trend will belong to the winning side.

Certain success of bears is to be recorded



Conclusion: main scenario is touching of 1.3711 (that would record advantage of bulls over bears) Breakthrough of 1.3711 will cause movement to 1.4285. But retracement is obviously possible before that.

Alternate plan: if movement above 1.3645 becomes impossible, we will wait for the rollback under 1.3462 (around 1.3264).



GBP/USD

Monthly chart: Upper Bollinger band is waiting for the pair (1.6469). Breakthrough above this point will make impetus to move to 1.7042. Average Bollinger band serves support (1.5743), where technical rollback is probable prior to growth.

Certain success of bears is to be recorded



Weekly chart: it is equally probable that the pair can move to test the average Bollinger band(1.5566) either dash to attack 1.6469.

Certain success of bears is to be recorded



Daily chart: as we can see, O&U is ready, thus, on the one hand, nothing prevents the price from rolling to the main start point (1.6150), and on the other hand, bears fairly can dredge descending front prior to the final rolling up.


The probability of actuation of this daily O&U by a considerable bullish pressure on monthly chart is growing. Thus, sellers need to keep Stops above the last High, because above there will be a new ascending wave.



Certain success of bears is to be recorded



Conclusion: main scenario is drop down to 1.5566-1.5743 and movement to 1.6150, from where a new full trend reversal down can start.



Alternate plan: movement to 1.6150 from current points.
Reserve plan:if bulls break the recent High (1.6259), we will wait growth of the pair to 1.6469.



AUD/USD

В Monthly chart: ascending retracement of the pair is keeping on towards Bollinger's average (1.0054). Bears need one more micro High to form swing, afterwards they can attack down with fresh forces. Therefore, current realignment can be called middle-terms search for selling points by large players.



Bulls can achieve a breakdown only by moving above the average (1.0054).



Certain success of bears is to be recorded



Weekly chart: one more serious resistance 0.97. It also can knockdown AUD/USD.

Certain success of bears is to be recorded



Daily chart: a calm flat range without ADX being active also can speak for weak forces of bulls.


Certain success of bears is to be recorded



Conclusion: major scenario – growth to 0.97 and quick moving down to 0.90.

Alternate plan — growth to 1.0054 and start of impetus descend.



Backup plan: breakthrough of buyers above 1.0054 will supply the pair with reversal power and that can be considered the next week.
Aleksey Panasenko
FreshForex Analyst
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