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21Oct

DAILY TECHNICAL ANALYSIS FOR OCTOBER 21, 2021

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EUR/USD

Current level – 1.1653

The attempt to breach the support of 1.1623 was not successful and, at the time of writing this analysis, the currency pair is preparing to test the resistance zone between 1.1668 and 1.1687. A violation of the mentioned zone will pave the way towards the next goal of 1.1750, a breach of which would strengthen the positive expectations for the future path of the EUR/USD. On the downside, bears could attack the support level of 1.1623 and, if successful, could easily deepen the drop towards the level of 1.1582. A spike in volatility is likely during the announcement of the economic data for the initial jobless claims for the U.S. (today; 12:30 EEST).

USD/JPY

Current level –  114.33

The positive sentiment remains as the currency pair continues to trade near the resistance of 114.42. A new test and breach is currently the most likely scenario, which could easily lead to new gains for the dollar against the yen and result in the currency pair moving towards the levels at around 115.50. The first target for the bears is the support zone of 113.70, but only a successful violation of the next target – the support of 112.98 – could lead to a change in the current expectations of the market participants.

GBP/USD

Current level – 1.3827

The support zone of 1.3762 withstood the bearish attack during yesterday’s trading session and the bulls quickly established themselves on the market. During the early hours of today`s trading, the currency pair is re-testing the resistance level of 1.3829 and a successful breach here could easily continue the rally and lead to new gains for the pound against the dollar. In the opposite direction, a violation of the mentioned level of 1.3762 could lead to a deeper correction towards the support of 1.3713.

Gold price crawls upwards

Gold price continues to rise to approach gradually from our waited target at 1797.00, getting continuous support by the EMA50, noting that surpassing this level will extend the bullish wave to reach 1825.15 as a next positive station.

Stochastic current negativity might cause some temporary sideways fluctuation before resuming the positive trades, to keep the bullish trend suggested unless breaking 1770.00 and holding below it.

The expected trading range for today is between 1770.00 support and 1800.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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