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18Oct

DAILY TECHNICAL ANALYSIS FOR OCTOBER 18, 2021

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EUR/USD

Current level – 1.1592

The currency pair is currently holding steady above the support of 1.1582, but the momentum of the bulls was not strong enough to test the resistance of 1.1640. Two scenarios are possible in the development of this complex pullback. In the first one, the failure of the bears to breach the 1.1528 support would make them look for better prices above 1.1582 and to fill in their ranks. In this case, a breach of 1.1528 would provoke a drop towards 1.1400. Given that the bulls are able to hold their positions and manage to attack 1.1640, they would heighten their chances for success and the next target for them would be the zone of 1.1670-1.1690. This week, more significant news affecting the pair is the housing data for the United States on Tuesday at 12:30 GMT.

USD/JPY

Current level –  114.05

The market entered a corrective phase and formed a local resistance at around 114.34. Prices are likely to test the breach of 113.64. The trend seems strong and growth is likely to continue this week as well. If 114.34 is breached, the next target for the bulls could be 115.60 and even 117.90.

GBP/USD

Current level – 1.3737

The Cable managed to breach the key resistance of 1.3713 and reached the next one of 1.3760. Expectations remain positive – for the recovery to continue, and corrective movements should remain limited above 1.3666. Consumer price index data is expected this week (Wednesday; 12:30 GMT) for the United Kingdom. Higher-than-expected data could lead to speculation about raising interest rates and appreciation of the sterling.

Midday update for Gold 

Gold price resumes its negative trading to move away from 1770.00 level, reinforcing the expectations of continuing the bearish trend for the rest of the day, supported by moving below the EMA50, and we believe that the way is open to visit our main waited target at 1734.00, reminding you that the continuation of the bearish wave requires holding below 1770.00.

The expected trading range for today is between 1745.00 support and 1780.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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