Technical Outlook 11 Oct 2022

Keep up to date with what's going on in the markets each day with our daily technical outlook and review.

 

Analysis as of 06:00am GMT 

( 4-hour chart)

Overview

  • Institute of fiscal studies says the UK needs spending cuts to put country back on a sustainable path

  • UK unemployment rate data for August to be published today

  • EU energy committee meet to discuss rising energy costs and rationing

  • Coffee prices are soaring 

  • JP Morgan states the USA is heading for a recession in the next 6 months

  • Earnings season has kicked off. 

USD JPY Bullish 

Open: 145.40 High: 145.84 Low: 145.24 Close: 145.72 Pivot Point: 145.60

1st resistance: 145.96

1st support:     145.36

2nd resistance: 146.20

2nd support:     145.00

3rd resistance: 146.56

3rd support:     144.76

Price continues on a bullish trend on the 4-hour chart and overnight. It is also still above the Ichimoku cloud, indicating a strong bullish trend. If bullish momentum continues, we expect price to get close to the second resistance around 146,20 today. 

usdjpy11.png

EUR USD Bearish

Open: 0.9738 High: 0.9754 Low: 0.9683 Close: 0.9704 Pivot Point: 0.9714

1st resistance: 0.9744

1st support:     0.9673

2nd resistance: 0.9785

2nd support:     0.9643

3rd resistance: 0.9815

3rd support:     0.9602

Price continues on a descending trend on the 4-hour chart. Price is still below the Ichimoku cloud, indicating a bearish trend. Price is testing the 1st support 0.9673. If it breaks through this support, it could head towards the 3rd support of 0.9602 today. Alternatively, if it does not break the support it could head back up towards the first resistance of 0.9744. 

Eurusd11.png

GBP USD Bearish

Open: 1.109 High: 1.1112 Low: 1.1021 Close: 1.1057 Pivot Point: 1.1063

1st resistance: 1.1106

1st support:     1.1015

2nd resistance: 1.1154

2nd support:     1.0972

3rd resistance: 1.1197

3rd support:     1.0924

On the 4-hour chart price continues to reject the first resistance and is heading in a descending trend. Its testing the 1st support at 1.1015, if it breaks through this it could head towards 1.0972. Alternatively, if it does not break through the 1st support it could head to the second resistance of 1.1154 today. Note, UK releases employment data today, which may influence direction. 

gbpusd11.png

USD CHF Bullish

Open: 0.9945 High: 1.0013 Low: 0.9932 Close: 1.0000 Pivot Point: 0.9982

1st resistance: 1.0031

1st support:     0.9950

2nd resistance: 1.0063

2nd support:     0.9901

3rd resistance: 1.0112

3rd support:     0.9869

Price is on a bullish trend on the 4-hour chart. Price currently testing the 1st resistance at 1.0031. If it breaks through this, we expect it to find a new resistance around 1.0063. Alternatively, price may head back to the first support at 0.9950 today. 

usdchf11.png

XAU USD Bearish

Open: 1696.80 High: 1700.33 Low: 1665.30 Close: 1668.15 Pivot Point: 1677.92

1st resistance: 1690.55

1st support:     1655.52

2nd resistance: 1712.95

2nd support:     1642.89

3rd resistance: 1725.58

3rd support:     1620.49

Price is dropping on the 4-hour chart and is heading towards the 1st support at 1655.52. Because price is above the Ichimoku cloud, we expect the price to bounce in the short term back towards the pivot point at 1677.02 and then head higher to the 3rd resistance at 1725.58.  If it does not bounce and breaks through the 1st support, we expect the price to find the 2nd support at 1642.89 and then the 3rd support at 1620.49

xauusd11.png

AUD USD Slightly Bearish 

Open: 0.6377 High: 0.6388 Low: 0.6274 Close: 0.6303 Pivot Point: 0.6322

1st resistance: 0.6369

1st support:     0.6265

2nd resistance: 0.6436

2nd support:     0.6208

3rd resistance: 0.6483

3rd support:     0.6141

On the 4-hour chart, price is descending toward the 1st support at around 0.6265. We expect price to bounce to test the first resistance at 0.6377. As the price is still below the Ichimoku cloud, after the bounce, the price may break the 1st support and head towards the 2nd support at 0.6208. 

audusd11.png

NZD USD Slightly Bearish

Open: 0.5605 High: 0.5629 Low: 0.5544 Close: 0.5567 Pivot Point: 0.5580

1st resistance: 0.5616

1st support:     0.5531

2nd resistance: 0.5665

2nd support:     0.5495

3rd resistance: 0.5701

3rd support:     0.5446

On the 4-hour chart, price is testing the 1st support at around 0.5531. Price may bounce back to the 1st resistance at 0.5616. Alternatively, as price is still below the Ichimoku cloud, price may break through the 1st support and head towards the 2nd support at 0.5495. 

nzdusd11.png

USD CAD Short term Bullish Signal

Open: 1.3742 High: 1.3782 Low: 1.3703 Close: 1.3780 Pivot Point: 1.3755

1st resistance: 1.3807

1st support:     1.3728

2nd resistance: 1.3834

2nd support:     1.3676

3rd resistance: 1.3886

3rd support:     1.3649

On the 4-hour chart price is testing the 3rd resistance of 1.3886. Price is also above the Ichimoku cloud, indicating a short-term bullish trend. Price could break through the 3rd resistance at 1.4033. Alternatively, price could fall back to 1.3728.  

usdcad11.png

OIL Short term Bearish Signal

Open: 92.65 High: 93.62 Low: 90.56 Close: 91.13 Pivot Point: 91.77

1st resistance: 92.98

1st support:     89.92

2nd resistance: 94.83

2nd support:     88.71

3rd resistance: 96.04

3rd support:     86.86

Oil prices are above the Ichimoku cloud indicating a bullish trend. However, on the 4-hour chart overnight price has retraced back towards 90.56. and is currently moving sideways. If it continues to descend it will head towards the 1st support of 89.92. Alternatively, it may bounce and head up towards the 1st resistance of 92.98.  

oil11.png