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DAILY TECHNICAL ANALYSIS FOR OCTOBER 08, 2021

EUR/USD

Current level – 1.1554

The downtrend of the currency pair continues and the euro is about to mark the fifth consecutive week of losses against the U.S. dollar. The declines may continue, while the first daily support is the level of 1.1535. If this area is violated, it is possible that the losses will deepen towards 1.1400. At the moment, expectations remain unchanged – for the continuation of the downtrend. Should the pair form a range around the current levels, a more significant correction towards the area between 1.1600 and 1.1640 would be possible. Today, investors will expect the monthly non-farm payrolls report for the United States, as well as the unemployment rate (12:30 GMT). Volatility is expected to increase and, if the data does not support the greenback, prices may remain above 1.1600, which could form the potential bottom of the downtrend.

USD/JPY

Current level –  111.84

The corrective move bottomed out at 110.81 and, throughout yesterday’s session, the pair formed a local support at around 111.30. In the early hours of today, the bulls tried to go for a second attack on the peak at 112.02. The resistance zone between 111.80 and 112.00 comes from the higher time frames and buyers are unlikely to succeed in this attempt. It is possible that the market will need more time to break through and it is also likely that the pair will enter a range between the support at 110.80 and the resistance at 112.00.

GBP/USD

Current level – 1.3615

The Cable is experiencing an increased volatility and the market has corrected a significant part of its losses since the end of September. The possibility for new declines is still in sight and the first significant resistance zones for the bulls are 1.3640 and 1.3710. Another failed attempt at breaching the resistance of 1.3640 may encourage the bears to plunge prices back towards 1.3420. The supports at 1.3530 and 1.3580 have not yet been tested and may prove unreliable should the bearish pressure renew.

Gold price is below the resistance

Gold price fluctuates within sideways track recently, settling below the bearish channel’s resistance that appears on the chart, waiting to resume the bearish wave that targets testing 1735.00 level initially, to keep the bearish trend scenario active for the upcoming period.

On the other hand, we should note that breaching 1770.00 will stop the expected decline and lead the price to turn to rise and achieve gains that start by visiting 1800.00$ barrier.

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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