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06Oct

DAILY TECHNICAL ANALYSIS FOR OCTOBER 06, 2021

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EUR/USD

Current level – 1.1593

The currency pair continues to consolidate between 1.1562 – 1.1628 as volatility seems to be dwindling down.. However, only a successful breach of the local support at 1.1562 would strengthen the negative expectations and lead to a move towards the significant support at 1.1500. In case the bulls prevail and the resistance at 1.1628 is breached, then the pair will most likely make its way towards the resistance at 1.1686. In the early hours of today’s trading session, the pair would most probably continue to trade in the mentioned area as investors await the announcement of the data regarding the U.S. ADP non-farm employment change, which is scheduled for 12:15 GMT.

USD/JPY

Current level –  111.54

The U.S. dollar continues to appreciate against the Japanese yen after the successful breach of the resistance of 111.28 during the previous trading session. The expectations for today’s trading are for the currency pair to make a corrective movement towards 111.28 and to afterwards attack the resistance of 111.63. A successful breach of the mentioned resistance would pave the way for the pair towards the next resistance of 112.00. In the opposite direction, the first important support level is located at 110.76. The economic news, mentioned in the EUR/USD analysis, may spark some volatility.

GBP/USD

Current level – 1.3625

At the time of writing this analysis, the bulls seem to be losing momentum just above the resistance of 1.3609, which is currently acting as a support. The expectations for today’s trading session are for the bears to limit the purchases and for the pair to head towards the support at 1.3520 as market sentiment is rather negative. However, if the bulls manage to retain their control over the market and successfully breach the resistance at 1.3676, an attack of the next level of 1.3752 will be the most probable scenario. A rise in volatility can be expected after the announcement of the construction PMI for the UK at 08:00 GMT.

Gold price faces solid support

Gold price continues to fluctuate around the breached resistance of the bearish channel that appears on the chart, waiting to get negative motive that assists to push the price to break the support line formed at 1755.00 and confirm rallying towards our main expected target at 1735.00.

In general, we will continue to suggest the bearish trend for the upcoming period as long as 1770.00 level remains intact, as breaching this level will lead the price to turn to rise and achieve gains that start by visiting 1800.00 areas.

The expected trading range for today is between 1735.00 support and 1770.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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