Technical Analysis and Review for 02 November 2022

Here are our signal directions and price ranges for your consideration. These are your guides for your own research to help you identify opportunities. We recommend including fundamentals into your research and to keep up to date with breaking news that may impact the direction of your trades. Good luck and have a great day.

Fundamentals

  • The US Central Bank is expected to increase interest rates by 0.75 percentage points today - the outcome is likely to trigger massive volatility

  • BOE launches quantitative tightening ahead of the interest rate decision on Thursday, it is a sign of functioning markets with good demand, although the current double-digit inflation means interest rates have not yet peaked

  • Caution: The markets are currently sitting on the side-lines with no clear direction waiting for the FED Interest rate decision from 18:00pm GMT today, the impending decision will impact the direction of the major currency pairs, commodities and indices. Pay particular attention to the statement from the FOMC to signal a future hawkish or dovish stance. Be ready.

USD/JPY: INTRADAY BEARISH

  • Overnight there has been some bearish momentum with the price closing at 148.24. The pair is currently under pressure, already touching the first support at 147.21 at time of writing. If bearish momentum continues, the price may touch the second support at 146.18. Alternatively, it may try and re-test the 149.04 first resistance. Look for the USD/JPY to break the 147.21 for confirmation of further downside.

Pivot 148.01

Our Preference:

Short positions below 148.01 with targets 147.21, 146.18, 145.38


Alternative Scenario:

Above 148.01 long positions with targets 149.04, 149.84, 150.87


EUR/USD: INTRADAY BEARISH
  • Overnight, the price has seen a slight bounce back up and is currently at 0.9885 (at time of writing) A bearish wedge is forming between 0.9993 and 0.9833.

  • We expect a bit of seesaw action until the FED hike decision from 18:00pm GMT.

Pivot 0.9893

Our Preference:

Short positions below 0.9898 with targets 0.9833, 0.9793, 0.9733


Alternative Scenario:

Above 0.9893 long positions with targets 0.9933, 0.9993, 1.0033


GBP/USD: INTRADAY BULLISH
  • We are slightly bullish that the price may test the first resistance at 1.1553, price is currently at 1.1516 at time of writing. If this first resistance is broken, the second resistance is at 1.1625. Alternatively, the price may drop back to the first support at 1.1424

Pivot 1.1496

Our Preference:

Long positions above 1.1496 with targets 1.1553, 1.1625, 1.1682


Alternative Scenario:

Below 1.1496 short positions with targets 1.1424, 1.1367, 1.1295


USD/CHF: INTRADAY BEARISH
  • On the 4-hour chart, price is showing overall bearish direction and is also below the Ichimoku cloud. The price is currently at 0.9979 at time of writing. We expect the price to fall back to the first support at 0.9936 before retesting the first resistance at 1.0046.

Pivot 0.9981


Our Preference:

Short positions above 0.9981 with targets 0.9936, 0.9871, 0.9826


Alternative Scenario:

Long positions below 0.9981 with targets 1.0046, 1.0091, 1.0156



XAU/USD: INTRADAY CAUTION
  • On the 4-hour chart price is still in a descending trendline, which is bearish. price is currently at 1650.66 at time of writing. We expect sideways movement until Fed Rate Hike decision. If no change from the central bank, we expect bearish momentum to continue. Alternatively, If the central bank changes course, we expect gold to head back up to the second resistance at 1671.42.

Pivot 1645.24


Our Preference:

Short positions below 1645.24 with targets 1633.43, 1619.06, 1607.25


Alternative Scenario:

Long positions above 1645.24, with targets 1659.61, 1671.42, 1685.79


AUD/USD: INTRADAY BULLISH
  • We are bullish that the price may extend its bounce to retest the first resistance at 0.6447. The price is currently at 0.6421 at time of writing. If it breaks through this resistance, we expect it to hit the 0.6500 second resistance. Alternatively, the price may fall back to the first support at 0.6360.

  • NB: While further upside is expected, be aware that today's FED rate hike decision, could strengthen the DXY. This could cause the AUD/USD to reverse to the downside.

Pivot 0.6413


Our Preference:

Long positions above 0.6413 with targets 0.6447, 0.6500, 0.6534


Alternative Scenario:

Below 0.6413 short positions with targets 0.6360, 0.6326, 0.6273


NZD/USD: BULLISH
  • The price has broken through the descending trendline and is above the Ichimoku cloud. The price is currently at 0.5868 at time of writing. It may break through the first resistance at 0.5896 and then head to the second resistance at 0.5950. Alternatively, the price may drop to the first support at 0.5795.

  • NB: While further upside is expected, be aware that today's FED rate hike decision, could strengthen the DXY. This could cause the NZD/USD to reverse to the downside.

Pivot 0.5849

Our Preference:

Long positions above 0.5849 with targets 0.5896, 0.5950, 0.5997


Alternative Scenario:

Below 0.5849 short positions with targets 0.5795, 0.5748, 0.5694



USD/CAD: BEARISH
  • on the 4-hour chart, we are seeing bearish movement. The price is also below the Ichimoku cloud. The price is currently at 136.00 at time of writing. If bearish momentum continues, price may drop towards the first support at 1.3588, if it breaks through this it may hit the second support at 1.3552.

Pivot 1.3611

Our Preference:

Below 1.3611 short positions with targets 1.3552, 1.3472, 1.3413


Alternative Scenario:

Long positions above 1.3611 with targets 1.3691, 1.3750, 1.3830


Crude Oil WTI Futures: INTRADAY BULLISH
  • On the 4-hour, the overall bias is bullish, plus it is above the Ichimoku cloud. Overnight bullish momentum has continued. Price at time of writing is at 89.02 and has stalled to break through this level. If this bullish momentum continues, we are expecting oil to retest the second resistance at 91.40. Alternatively, there may be some price retracement to the pivot point at 87.90.

Pivot 87.90

Our Preference:

Long positions above 87.90 with targets 89.88, 91.40, 93.38


Alternative Scenario

Below 87.90 short positions with targets 86.38, 84.40, 82.88


Sign up today