Weekly Technical Outlook: Long-Term EUR/USD Trend Line, Reversals on FTSE 100 and EUR/AUD

Who’s ready to start October with a bang?

Here are the big market moves I’m waiting for on EUR/USD, EUR/AUD, and the FTSE 100 index.

I’m talkin’ about long-term trends and major reversals right here!

EUR/USD: Daily

Check out this EUR/USD descending trend line that’s been holding since the beginning of the year!

Another test of the resistance seems to be in the works, as the pair is pulling up to the 50% Fib on its latest slide.

Are euro bears ready to return soon?

Stochastic is saying that EUR/USD could stay in correction mode for a bit longer since the oscillator has plenty of room to climb before reaching the overbought zone.

This could give the pair a chance to test the actual trend line close to the 61.8% Fibonacci retracement level at .9950. Heck, it might even pull back up to the area of interest at parity, too!

The moving averages confirm that the downtrend is bound to resume at some point, as the 100 SMA is below the 200 SMA to reflect bearish vibes.

Better keep your eyes peeled for reversal candlesticks at any of the resistance levels then!

FTSE 100 Index (UK100): Daily

Breakdown alert!

This U.K. stock index has been on a steady decline for the past weeks, and it looks like bearish pressure is strong enough to bust through this key support level.

If that happens, the FTSE 100 could set its sights lower and aim for the next floor around 6,400. I’m seeing a fresh bearish moving average crossover, which hints that more losses are in the cards.

However, Stochastic has just dipped into the oversold region to indicate exhaustion among sellers, so be careful when hopping in a short play.

Once the oscillator pulls higher, buying momentum might pick up and spur a bounce back to the area of interest at 7,000.

EUR/AUD: Daily

Don’t look now, but this pair looks prime for a major reversal soon!

EUR/AUD is inching close to the neckline of its double bottom on the daily time frame, and a break higher could mean that a rally of the same height as the formation would follow.

That’d be roughly a thousand pips yo!

Technical indicators have yet to catch up to a potential trend shift, as the 100 SMA is below the 200 SMA while Stochastic is hovering around the overbought region.

It’s worth noting that the gap between the moving averages is narrowing to reflect slowing bearish momentum and a potential upward crossover.

Also, EUR/AUD has managed to climb above both dynamic inflection points, so these could hold as support levels on dips.