Daily Forecast - 28 October 2014
Mini Russell 2000 December contract
Mini Russell unable to beat 1120 for the last 3 sessions as we become overbought. Sooner rather than later we expect the bear trend to resume. Downside pressure today targets 1110/09 then good support at 1101/00. This held the downside perfectly yesterday & could do again today. Failure here however then targets 1095 & 1089/88. A good chance of a low for the day if we fall this far but longs need stops below 1084. Just be aware that a break lower targets 1081/79.
An unexpected break higher today through 1120 however targets 1124/25 & possibly 1130/31. Exit longs & try shorts expecting a high for the bounce in the bear trend, with stops above 1137.
AUDUSD
AUDUSD continues to be directionless so far in October. Again yesterday we held immediate resistance at 8810/20. It looks like this is a pause in the bear trend before it resumes. Now the oversold conditions have unwound we expected this to occur sooner rather than later. Until then we can only trade the range & wait for a breakout. Same levels apply for today. Immediate support at 8750/45 but below here a retest of support at Friday's low of 8720/15. Below here today confirms more weakness for a move towards 8685/75. If we continue lower look for a retest of October lows & support at 8650/40.
Immediate resistance at 8810/20 for a selling opportunity with stops above 8835. However be ready to go with a break higher to target 8860 then 8888/98 & a high for the day likely. If however we continue higher, look for a selling opportunity at 8930/35 with stops above 8950.
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