Price broke above Yesterday’s High, but face potential resistance around H4/ 21st Oct Low as a “shooting star” candlestick could be forming. However, note that the previous “shooting star ” reversal signal just 2 hours before has failed, showing the importance of confirmation to validate any signals. Break above H4 will bring trading range of 1.3015 – 1.3080 into focus, with resistance potentially found along H5. Immediate support would be 1.30 round number/H3/Yesterday’s High region with L3 around 1.295 further supporting should price reach there today.
Cable was the biggest benefactor from the better than expected UK GDP result which PM Cameron was hinting about when he said “the good news will keep on coming” yesterday.Â Pound rallied around 80 pips on the back of the news, not enough to hit H5 and pulling back to 16-18th Oct consolidation area, which could yet act as resistance. Support for today could be found around H3 of 1.6065 which is around the peak of 21st Oct and consolidation zone in 18th Oct.
DAX Futures M30
Similar to Cable chart, rally early Europe session failed to hit H5, with a “Doji” reversal candlestick potentially forming with its wick just under consolidation range of 23rd Oct. Support could also be found around H4/Yesterday’s High/ 23rd and 24th Oct Highs.
FTSE 100 Futures M30
H5 acting as strong resistance which coincides with small conslidation zone found on 22nd Oct. Break below H4 today opens up trading range on Tuesday and Wednesday. Break above H5 may find resistance around 5,870.
Brent Crude Oil H1
Crude Oil inventories in US was much higher than expected, bringing price down to yesterday’s low of 107.45. Price has since recovered strongly, breaking H3 of 109.20 with H4 of 109.9 tp Yesterday’s High of 110.0 acting as resistance. Should H3 fail to hold, L3 will be back in focus as intraday support.
Good news from UK push equities and currencies higher, but this rally has its roots not from Europe Open, but rather from Asian session, which saw Exporters gain on better than expected US Housing data. Is this a turn around or a potential bull-trap? The ability of assets pushing above overhead resistances will give us a better idea as we head into the end of the week.