DAILY TECHNICAL ANALYSIS FOR OCTOBER 27, 2021petar skakalov
Current level – 1.1598
After the bulls’ unsuccessful attempt at violating the resistance zone of 1.1618, the euro lost some ground against the dollar and, at the time of writing, the pair is trading 20 or so pips below the mentioned resistance. If the bearish attack continues, a test of the support of 1.1575 would be the most likely scenario and, if breached, the decline should deepen towards the local lows at around 1.1535. In the positive direction, a breach of the mentioned zone of 1.1618 could encourage the bulls to test the resistance between the levels of 1.1663 and 1.1687.
Current level – 114.16
The dollar regained some of its recent losses against the yen and, during the early hours of today`s trading, the pair is holding positions above the zone of 114.10, which is now acting as a support. At the time of writing the analysis, the expectations are for a test of the resistance of 114.42 and, if successful, this should lead to a continuation of the rally and even more gains for the greenback against the yen. If the bears re-enter the market, the corrective move should remain limited to the level of 113.21.
Current level – 1.3769
During yesterday’s session, neither the bears, nor the bulls managed to gain enough momentum to get the currency pair out of the trading range between 1.3759 and 1.3830. The expectations for today’s trading are positive, but the Cable will most likely remain locked in the mentioned range and only a successful breach of one of the borders could signal the future path of the GBP/USD. A violation of the resistance zone of 1.3830 would easily continue the rally and head the pair towards the levels of around 1.4000. However, if the bears prevail, a breach of the low border of 1.3759 could deepen the sell-off towards the zone of 1.3715.
Gold price under the negative pressure
Gold price ended yesterday below 1797.00, to hint the return of the domination of the negative pressure on the intraday basis, but its still within the intraday bullish channel that appears on the chart, which keeps the chances valid to attempt to recover.
Therefore, this contradiction between the technical factors makes us prefer staying neutral until we get clearer signal for the next trend, noting that breaking 1783.00 will press on the price to achieve more decline and visit 1770.00 initially, while breaching 1797.00 will lead the price to resume the bullish wave that its next main target located at 1825.15.
The expected trading range for today is between 1770.00 support and 1810.00 resistance.
The expected trend for today: Neutral
Source: Technical analysis