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EURUSD Daily Pivots

R3 1.2803
R2 1.2872
R1 1.278
Pivot 1.27
S1 1.2653
S2 1.2574
S3 1.2527

 EURUSD Pivot Points Technical analysis outlook October 9 2014

From yesterday’s analysis, EURUSD broke the neckline resistance at 1.268 and in the process has left an inverted head and shoulders pattern. The timing of this pattern indicates a period of likely correction that could ensue in the EURUSD. The most immediate target for this inverted head and shoulders comes in at 1.2828, which incidentally happens to be a longer term support level that has given way. A breach of this level could see a nice and gradual rounding bottom pattern formation taking place giving more impetus for further gains to the upside. The key risk to EURUSD today is Mario Draghi’s speech and the weekly US unemployment claims.

USDJPY Daily Pivots

R3 109.624
R2 109.184
R1 108.634
Pivot 108.194
S1 107.644
S2 107.204
S3 106.654

USDJPY Pivot Points Technical analysis outlook October 9 2014

Having cleared the support level between 108.215 and 108.1, we can expect to see further declines in USDJPY, with the next support level coming in at 107.356, which is a longer term support/resistance level. If price does manage to reach this level, we could expect to see a larger descending triangle pattern taking shape which could put the bias back to the upside.

GBPUSD Daily Pivots

R3 1.6372
R2 1.6277
R1 1.6223
Pivot 1.6127
S1 1.6073
S2 1.5977
S3 1.5923

GBPUSD Pivot Points Technical analysis outlook October 9 2014

GBPUSD managed to bounce off the support from 1.6047, invalidating a potential descending triangle pattern. The pair broke above its falling resistance trend line as well as clearing the interim resistance at 1.617. Look for a minor decline back to this level for support for further upside gains towards 1.63 and 1.627. The BoE will be releasing its monthly monetary policy details today, but the policy is widely expected to remain unchanged.