2018-10-26
AUD/USD has been quite volatile, judging by the recent price action. However, the pair managed to push lower below 0.7050 area currently with impulsive momentum. Despite the recent economic headwinds faced by US after the recent rate hike, AUD failed to gain momentum over USD which indicates weakness of the currency in the process.
Though AUD has been quite successful with the gains against other currencies in the market, it is making efforts to gain over USD. After the mixed economic data on employment last week, AUD somehow managed to gain some momentum in the process but failed to sustain it. This week RBA Assistant Governor Debelle and Bullock spoke about the economic developments and expressed the hawkish view on the current economic structure which is expected to encourage growth in the future.
On the USD side, recently a series of macroeconomic data like Core Durable Goods Orders, Durable Goods Orders, and Trade Balance report was published with mixed scores. As a result, the US currency is trading with indecision. However, the borad-based strength of USD is ensured by the strong likelihood of another rate hike at the December policy meeting. Today US Advance GDP report is going to be published which is expected to decrease to 3.3% from the previous value of 4.2%, Advance GDP Price Index is expected to decrease to 2.1% from the previous value of 3.0%, and Revised UoM Consumer Sentiment is also expected to decrease to 98.9 from the previous figure of 99.0.
Meanwhile, upcoming US economic reports are expected to be quite downbeat, whereas AUD has been quite hawkish fundamentally. As per current bearish pressure in the market, certain negative readings on the USD side is expected to lead to certain weakness, thus propping up AUD gains the coming days. Ahead of macroeconomic reports from Australia and the US to be published next week, certain volatility may be observed in this pair.
Now let us look at the technical view. The price is currently residing below 0.7050 which has not been confirmed yet to have a daily close below it ahead of a series of macroeconomic reports of today. The price recently formed a Bullish Divergence in the price which decreases the probability of further bearish momentum in the pair. As per current price formation, the price is expected to push up higher towards 0.7150-0.7200 area before continuing with the bearish trend in the future whereas a daily close above 0.7050 is required for better probability.
SUPPORT: 0.6850
RESISTANCE: 0.7050, 0.7150, 0.7200
BIAS: BEARISH
MOMENTUM: VOLATILE
Technical analysis of EUR/USD for October 26, 2018
2018-10-26
Overview:
As expected, the EUR/USD pair continues to move downwards from the areas of 1.1475 and 1.1422.
Yesterday, the pair dropped from the level of 1.1475 to 1.1356. Today, resistance is seen at the levels of 1.1422 and 1.1475.
So, we expect the price to set below the strong resistance at the levels of 1.1475 and 1.1422; because the price is in a bearish channel now.
Also, it should be noted that the price of 1.1457 is coincided with a ratio of 38.2% Fibonacci on the H4 chart.
Amid the previous events, the price is still moving between the levels of 1.1422 and 1.1300.
In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1422.
Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1356, the market will decline further to 1.1295.
On the other hand, if the price closes above the strong resistance of 1.1475, the best location for a stop loss order is seen above 1.1475.
Technical analysis of GBP/USD for October 26, 2018
2018-10-26
As expected, the EUR/USD pair continues to move downwards from the areas of 1.1475 and 1.1422.
Yesterday, the pair dropped from the level of 1.1475 to 1.1356. Today, resistance is seen at the levels of 1.1422 and 1.1475.
So, we expect the price to set below the strong resistance at the levels of 1.1475 and 1.1422; because the price is in a bearish channel now.
Also, it should be noted that the price of 1.1457 is coincided with a ratio of 38.2% Fibonacci on the H4 chart.
Amid the previous events, the price is still moving between the levels of 1.1422 and 1.1300.
In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1422.
Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1356, the market will decline further to 1.1295.
On the other hand, if the price closes above the strong resistance of 1.1475, the best location for a stop loss order is seen above 1.1475.
Technical analysis of GBP/USD for October 26, 2018
2018-10-26
Overview:
The GBP/USD pair fell from the level of 1.2979 towards 1.2902 then it set around 1.2829. Now, the price is set at 1.2913. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2979 and 1.2902 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.2979 and 1.3029, which coincides with the 23.6% and 38.2% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.2979. Thereupon, the price spot of 1.2979 remains a significant resistance zone. Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.2979, sell below1.2979 with the first targets at 1.2829 1.2759 and 1.2695. However, the stop loss should be located above the level of 1.2979.
Analysis of Gold for October 26, 2018
2018-10-26
Recently, Gold has been trading sideways at the price of $1,236.90. According to the H4 time – frame, I have found that Gold is in consolidation phase and my advice is to watch potential breakout of the resistance $1,239.50 to confirm further upward continuation. I have placed Fibonacci expansion to find potential upward target and I Got Fibonacci expansion 161.8% at the price of $1,266.80. Watch for buying opportunities above the level of $1,239.50.
The GBP/USD pair fell from the level of 1.2979 towards 1.2902 then it set around 1.2829. Now, the price is set at 1.2913. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2979 and 1.2902 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.2979 and 1.3029, which coincides with the 23.6% and 38.2% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.2979. Thereupon, the price spot of 1.2979 remains a significant resistance zone. Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.2979, sell below1.2979 with the first targets at 1.2829 1.2759 and 1.2695. However, the stop loss should be located above the level of 1.2979.
Analysis of Gold for October 26, 2018
2018-10-26
Recently, Gold has been trading sideways at the price of $1,236.90. According to the H4 time – frame, I have found that Gold is in consolidation phase and my advice is to watch potential breakout of the resistance $1,239.50 to confirm further upward continuation. I have placed Fibonacci expansion to find potential upward target and I Got Fibonacci expansion 161.8% at the price of $1,266.80. Watch for buying opportunities above the level of $1,239.50.
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