DAILY TECHNICAL ANALYSIS FOR OCTOBER 24, 2022petar skakalov
Current level – 0.9871
The single European currency managed to gain 1.38% against the dollar in the past week. On the final day of the week, at the opening of the U.S. trading session, the currency pair convincingly broke through the previous resistance at 0.9808. The gains continued, but stopped right at the bulls’ previous attempt to break through the resistance at 0.9875. Whether this trend holds today, depends on manufacturing data from Germany, France and the EU as a whole, which will be released between 08:15 and 09:00 (GMT). If they support the investments in the Eurozone, then this could extend the moves until at least the next resistance. However, traders’ assessment of the dollar should not be taken lightly, as it is at the heart of the currency pair’s movements.
Current level – 147.66
On Friday last week, the Ninja experienced its most volatile day since September. Already in the early hours of the day, we observed an increase in prices. Shortly after the European session opened, the rate hit a new 32-year high of 151.92. However, the Bank of Japan again intervened on the FX market and started draining its dollar reserves to buy yen. Shortly after the opening of the session in the USA, the dollar began a sharp decline, with which USD/JPY managed to reach 146.18. The bulls’ attempt to recover some of the decline in the currency pair proved successful and the day ended around 147.50. All eyes are on the strength of the dollar and potential further interventions by the BOJ.
Current level – 1.1381
Friday was also volatile for the Cable, as it began with a move to the downside in the early hours of the session in London when the pair dropped below the 1.1222 support and sought a new weekly low. The local bottom was formed at the support at 1.1059 where the bulls started their attack and took advantage of the weak dollar. The session ended with an extremely strong uptrend that reached 1.1395. Today, UK manufacturing data at 06:30 (GMT) will give traders more clarity on whether the uptrend has the potential to continue. However, one should always be wary of the dollar strength, particularly since later today, at 14:45 GMT, the U.S. will release the same data.
Midday update for Gold
Gold price resumes its negative trading after consolidating below 1660.00 level, reinforced by stochastic negativity, to keep the bearish trend scenario valid efficiently for the rest of the day, reminding you that we are waiting to visit 1615.00 level mainly, while breaching 1660.00 represents the key to achieve new bullish correction that targets 1686.40 before any new attempt to decline.
The expected trading range for today is between 1630.00 support and 1665.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis