DAILY TECHNICAL ANALYSIS FOR OCTOBER 26, 2022petar skakalov
Current level – 0.9957
The euro managed to make big gains against the U.S. dollar in the past trading session. The bulls managed to break through the all-important resistances at 0.9870 and 0.9926. At the time of writing, the bears seem to be able to stop the momentum of the bulls. Today, traders will have their eyes on the macroeconomic news from the U.S. on the New Home Sales Index (15:00 GMT) and Oil Inventories (15:00 GMT). If the news is negative for the world’s largest economy, we could once again witness a parity between the euro and the dollar. On the other hand, positive news would help the bears recover from yesterday’s losses.
Current level – 147.99
With the Ninja, the bears managed to consolidate their support breach at 149.06 and, at the time of writing the analysis, it is approaching the next support at 147.71. If the bulls fail to limit the selloff, we may see an attempt to breach the next support at 146.94.
Current level – 1.1455
With the Sterling, yesterday we witnessed a breach of two resistance levels at 1.1336 and 1.1396. At the time of writing the analysis, the currency pair is moving just below the next resistance at 1.1493. If the bulls manage to make a breakthrough and consolidate it, they could reach the resistance level at 1.1587.
Gold price builds positive pattern
Gold price provided clear positive trades yesterday to test the key resistance 1660.00 again, and by taking a deeper look at the chart, we find that the price forms inverted head and shoulders’ pattern that its confirmation line located at 1661.20, which means that breaching this level will lead the price to achieve new gains that start at 1686.40 and extend to 1708.50.
Therefore, the bullish bias will be suggested for today, and breaching the mentioned neckline is a major condition to achieve the expected rise, taking into consideration that breaking 1645.00 will cancel the positive formation and press on the price to resume the bearish trend again.
The expected trading range for today is between 1640.00 support and 1675.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis