Technical Analysis and Review for 19 Oct 2022


Fundamentals Overview

  • UK Inflation data release today announces rise to 10.1%, due to continued rise in food costs. Mortgage rates continue to rise offered by lenders. The GBP/USD faces a turbulent time ahead as it continues to test resistance at 1.14 level.

  • Canadian dollar underperforms, pulling back from a two-week high as oil prices fall and investors brace themselves ahead of its key inflation data release today, which will impact further interest rates from the bank of Canada.

  • The Japanese Yen continues to weaken and test the 150-resistance level, investors still hanging on for an intervention from Japan.

  • The EUR/USD rebounds ahead of a yearly low to approach 50-day simple moving average (0.9924) however, its struggling to break through this, plus it could be short lived ahead of the ECB meeting on 27 October.

USD/JPY - Bullish

We continue to be bullish on the 4-hour chart. Price continues its strong bullish momentum and has crossed the 149.00 level with price currently at the first resistance 149.48 if the bullish momentum continues, we expect the price to head towards the second resistance at 149.73.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

149.03

149.32

148.66

149.23

149.07

1st

2nd

3rd

Resistance Level

149.48

149.73

150.14

Support Level

148.82

148.41

148.16

USD/JPY 4-hour chart

EUR/USD - Bearish

Price is continuing sideways and hovering around the pivot point and below the Ichimoku cloud. Price is failing to break through the simple moving average around 0.9924. We expect the price to range within the descending channel of 0.9822 and 0.9914.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

0.9840

0.9877

0.9813

0.9859

0.9850

1st

2nd

3rd

Resistance Level

0.9886

0.9914

0.9950

Support Level

0.9822

0.9786

0.9758

EUR/USD 4-hour chart

GBP/USD - Bearish

On the 4-hour chart the price is bearish, rejecting the first resistance at 1.1404. Price looks like its heading back down to the first support level at 1.1248.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

1.1360

1.1411

1.1255

1.1322

1.1329

1st

2nd

3rd

Resistance Level

1.1404

1.1485

1.1560

Support Level

1.1248

1.1173

1.1092

GBP/USD 4-hour chart

USD/CHF - Bullish

Price continues on a strong bullish trend on the 4-hour chart. It is also still above the Ichimoku cloud, indicating a bullish trend. If bullish momentum continues, we expect price to get close to the second resistance around 1.0008 today.


Trading Range for Consideration

Open

High

Low

Close

Pivot Point

0.9964

0.9980

0.9919