Technical Analysis and Review for 03 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 Fed Reserve raised interest rates by 75 basis points increasing rates to 4.00% Markets experiencing significant volatility as the DXY and major currencies fluctuate on the news

  • Dollar gains as Stocks & Gold fell after Jerome Powell said the Federal Reserve would raise interest rates more than previously anticipated, sapping risk appetite - traders focus on the DXY strength for major currencies price corrections and trends.

  • This morning, Asian Shares Slip as Powell Primes Further Hikes, will this follow into European and Asian sessions

  • Today at 12pm GMT, the Bank of England is set to deliver biggest rate rise in 33 years to rein in double-digit inflation and expect to follow the US with 75 basis points factored in.

  • Governor Andrew Bailey will lead a press conference a half hour later. Officials will publish their outlook for the economy and inflation, likely confirming a long recession is now under way.

  • 200. PM GMT, all eyes on the US ISM Services PMI, shows health of US economy.

  • Expect further market volatility today and keep an eye on the DXY to determine major currency pair directions.

  • ECB President Christine Lagarde speaks at 8.05 am GMT, highlighting the state of the eurozone, if recession is on the agenda, expect EUR/USD volatility.

USD/JPY: INTRADAY BEARISH

  • Overnight the USD/JPY broke the 147 key support level to reach a low of 145.66 before correcting to test 148.25. The 4-hour chart is still bearish, and price is at 147.29 at time of writing. We expect price to head downwards towards the first support at 146.27, if it breaks this, it will head towards the second support at 144.61. Alternatively, if the DXY continues to strengthen today, this could pull the pair back up to the first resistance at 148.98.

Pivot 147.32

Our Preference:

Short positions below 147.32 with targets 146.27, 144.61, 143.56


Alternative Scenario:

Above 147.32 long positions with targets 148.98, 150.03, 151.69


EUR/USD: INTRADAY BEARISH
  • On the 4-hour chart the price is breaking below the Ichimoku cloud and is struggling to break through 0.9880 resistance level. The price is currently at 0.9830 at time of writing. We expect the price to drop to the first support at 0.9761 and range between the pivot and first support. Alternatively, the price may retest the 0.9880 resistance level, if it breaks through this it will head towards the 0.9926 level.

Pivot 0.9869

Our Preference:

Short positions below 0.9869 with targets 0.9761, 0.9704, 0.9596


Alternative Scenario:

Above 0.9869 long positions with targets 0.9926, 1.0034, 1.0091


GBP/USD: INTRADAY BULLISH
  • We are slightly bullish that the price may test the first resistance at 1.1510, price is currently at 1.1413 at time of writing. If this first resistance is broken, the second resistance is at 1.1629. Alternatively, the price may drop back to the first support at 1.1330

  • Bank Of England Interest Rate decision today, will impact direction of GBP/USD.

Pivot 1.1449

Our Preference:

Long positions above 1.1449 with targets 1.1510, 1.1629, 1.1690


Alternative Scenario:

Below 1.1449 short positions with targets 1.1330, 1.1269, 1.1150


USD/CHF: INTRADAY BULLISH
  • On the 4-hour chart, price is showing overall bullish direction and is also above the Ichimoku cloud. The price is currently at 1.0020 at time of writing. If bullish momentum continues, we expect price to hit the first resistance at 1.0080.

Pivot 0.9995


Our Preference:

Long positions below 0.9995 with targets 1.0080, 1.0126, 1.0211


Alternative Scenario:

Short positions above 0.9995 with targets 0.9949, 0.9864, 0.9818


XAU/USD: INTRADAY BEARISH
  • On the 4-hour chart price is still in a descending trendline, which is bearish. price is currently at 1643.00 at time of writing. We expect bearish momentum to continue and to test the first support at 1623.22. Alternatively, the price may rise to retest the first resistance at 1658.42

Pivot 1646.41


Our Preference:

Short positions below 1646.41 with targets 1623.22, 1611.21, 1588.02


Alternative Scenario:

Long positions above 1646.41, with targets 1658.42, 1681.61, 1693.62


AUD/USD: INTRADAY BEARISH
  • We are bearish that the price may retest the first support at 0.6301. The price is currently at 0.6361 at time of writing. If it breaks through this support, we expect it to hit the 0.6251 second resistance.

Pivot 0.6396


Our Preference:

Below 0.6396 short positions with targets 0.6301, 0.6251, 0.6156


Alternative Scenario:

Long positions above 0.6396 with targets 0.6446, 0.6541, 0.6591


NZD/USD: BEARISH
  • The price has broken through the descending trendline and is below the Ichimoku cloud. The price is currently at 0.5833 at time of writing. It may drop to test the support at 0.5773.

Pivot 0.5859

Our Preference:

Below 0.5859 short positions with targets 0.5773, 0.5728, 0.5642


Alternative Scenario:

Long positions above 0.5859 with targets 0.5904, 0.5990, 0.6036


USD/CAD: BULLISH
  • on the 4-hour chart, we are seeing bullish movement. The price is also above the Ichimoku cloud. The price is currently at 136.88 at time of writing. If bullish momentum continues, price may rise towards the first resistance at 1.3770, if it breaks through this it may hit the second resistance at 1.3826.

Pivot 1.3659

Our Preference:

Long positions above 1.3659 with targets 1.3770, 1.3826, 1.3937


Alternative Scenario:

Below 1.3659 short positions with targets 1.3603, 1.3492, 1.3436


Crude Oil WTI Futures: INTRADAY BULLISH
  • On the 4-hour, the overall bias is bullish, plus it is above the Ichimoku cloud. Overnight the price has traded sideways. Price at time of writing is at 88.83. If bullish momentum continues, we are expecting oil to retest the first resistance at 90.96.

Pivot 89.36

Our Preference:

Long positions above 89.36 with targets 90.96, 91.92, 93.52


Alternative Scenario

Below 89.36 short positions with targets 88.40, 86.80, 85.84



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