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Published: 10/24/2018

How ESMA Regulations are Changing the Trading Landscape

The USDCHF pair has pushed higher towards parity once again and remains below the 0.9982 level of resistance from Monday’s trading. The US Dollar has strengthened over the last month and support was found at 0.9550. The 1.0000 area is heavily congested with orders and levels of resistance that can attract attention for traders. A break into this area presents a bit of an unknown as to how the market will react. Beyond 1.1000 the level of resistance at 1.0070 is one traders will be looking out for with a break higher signalling a willingness to reach 1.0100 and 1.0150.

Support for the pair may be found in the near term at 0.9938 with a loss of this area opening the way for a revisit of 0.9900 or 0.9850 and the 100 DMA. The 200 DMA is rising at 0.9814 with the 50 DMA at 0.9783. A loss of 0.9800 and these DMAs might turn the market negative for a push down to 0.9700. Support was found at 0.9650 in the past followed by the low at 0.9543.


The GBPAUD pair has dropped to test the 50 DMA at 1.8200 with the supporting trend line just below at 1.8156. Resistance may now appear around 1.8300 followed by the 1.8400 area where price was halted last month. A break out higher from this level would be considered a bullish move if the pound was to find strength and may lead to a retest of 1.8565 as resistance. Above this area the 0.8700 level has seen sellers step in and defend the region where they managed to hold price from advancing earlier this month at 1.8739.

Support for the pair at the 50 DMA and the trend line may come under pressure from the volatility that is in the market. A loss of these supports would hand control to sellers and result in an attempt by them to test 1.8100 and 1.8012/1.8000. The 200 DMA is located at 1.7972 followed by the 100DMA at 1.7938. These levels are important for buyers and a loss there would see buyers leaning on 1.7900. Below this level previous support at 1.7780 is a key area, below which price could flush to 1.7500.



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