DAILY TECHNICAL ANALYSIS FOR NOVEMBER 02, 2022

02Nov2nd November 2022

DAILY TECHNICAL ANALYSIS FOR NOVEMBER 02, 2022

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EUR/USD

Current level – 0.9884

During yesterday’s trading session the bulls’ attack of the resistance level at 0.9940 was thwarted by the bears and the euro plunged almost a figure, reaching the support at 0.9850. At the time of writing this analysis, the bears seem to be losing momentum and the pair is hovering just above the mentioned support. The pair would most probably enter a short consolidation phase in the range 0.9853 – 0.9944, as market participants are in anticipation of the Fed interest rate decision that will be announced today at 18:00 GMT. Considering the forecasts for a rate hike of 75 bps and the divergence with ECBs monetary policy despite the accelerating inflation rates in the EU, we may see a further appreciation of the U.S. dollar towards the resistance zone at around 0.9745. On the other hand, a dovish decision of the Fed with a 50 bps hike or lower, may give the buyers a stimulus to try to lead the pair above parity. In addition, today investors shall also be cautious around the announcement of the data regarding the ADP Nonfarm Employment change that will be published at 12:15 GMT.

USD/JPY

Current level – 147.31

The pair bounced back from the resistance at 148.25 and is currently testing the support at 147.28. The market sentiment is neutral and the most likely scenario for today’s trading session is for the USD/JPY to consolidate in the range 146.61 – 148.25. Only a confirmed breach of either border of the range would allow investors to gain confidence for the future direction of the pair. In the downward direction the first support can be found at 145.46, while on the upside, the bulls would face the psychological level at 149.00. Traders are eagerly expecting the Fed interest rate decision in order to gain more confidence for entering the market.

GBP/USD

Current level – 1.1498

After a couple of unsuccessful attacks of the critical resistance at 1.1611 the bears manage to keep control and hold the pair in the interval 1.1437 – 1.1611. The most probable scenario is for the pair to continue trading in the range 1.1437 – 1611. Only a confirmed breach of the key support zone at 1.1437 would pave the way for the pair towards the next support zone at around 1.1269. In the opposite direction, if the bulls prevail, we may witness an impulsive upward movement towards the next resistance at 1.1735.

Midday update for Gold

Gold price shows additional positive trades to approach 1660.00 level again, which urges caution from the upcoming trading, as the price needs to hold below this level to keep the bearish trend scenario active for today, waiting to get additional negative motive that assists to push the price to head towards our main expected target at 1615.00.

The expected trading range for today is between 1625.00 support and 1665.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis