Technical Analysis and Review for 21 Oct 2022


Fundamentals

  • Confidence in the UK economy is at rock bottom due to political chaos. The GBP/USD continues its turbulent time and heads back to the 1.12 level

  • Traders on a knife edge from potential intervention from the Bank of Japan to prop up the Japanese Yen as the currency breaks the 150.00 level

  • Recession fears way heavily on gold and oil and extend USD buying

  • Economic uncertainty due to Ukraine war and energy inflation continue to undermine the Euro zone. Risks to EUR/USD to the downside.

USD/JPY - BULLISH

We continue to be bullish on the 4-hour chart. Price continues its strong bullish momentum and has crossed the 150.00 level with price currently above the first support of 149.71. If the bullish momentum continues, we expect the price to head towards the second resistance at 150.71.


Trading Range

Pivot: 149.99

1st

2nd

3rd

Resistance

150.43

150.71

151.15

Support

149.71

149.27

148.99

EUR/USD - BEARISH

Price is moving in a descending trendline and below the Ichimoku cloud. Therefore, we are still bearish. Overnight, price has retraced slightly, if this bearish momentum continues, we expect the price to pull back to 0.9746. If it breaks this level, we expect it to hit the second support at 97.05.


Trading Range

​Pivot: 0.9797

1st

2nd

3rd

Resistance

0.9838

0.9889

0.9930

Support

0.9746

0.9705

0.9654

GBP/USD - BEARISH

On the 4-hour chart price has rejected the first resistance and is moving in a slightly descending trendline, therefore, we are slightly bearish. Price looks like it is heading to the first support level at 1.1162. Alternatively, price could test the first resistance at 1.1327.

Trading Range

Pivot: 1.1249

1st

2nd

3rd

Resistance

1.1327

1.1414

1.1492

Support

1.1162

1.1084

1.0997

USD/CHF - BULLISH

Price continues on a strong bullish trend on the 4-hour chart. It is still above the Ichimoku cloud, indicating a bullish trend. Its currently testing the first resistance at 1.0070. If bullish momentum continues, we expect price to get close to the second resistance around 1.0108. Alternatively, if it does not break through the first resistance price could drop back to the first support level at 0.9994.



Trading Range

Pivot: 1.0032

1st

2nd

3rd

Resistance

1.0070

1.0108

1.0146

Support

0.9994

0.9956

0.9918

XAU/USD BEARISH

On the 4-hour chart, price continues to move in a descending trendline. If it continues with bearish momentum, we expect it to hit the third support at 1614.26


Trading Range

Pivot: 1625.51

1st

2nd

3rd

Resistance

1631.10

1633.93

1639.52

Support

1622.68

1617.09

1614.26

AUD/USD - BEARISH

On the 4-hour chart the price is moving within the descending channel and below the Ichimoku cloud. We expect the price to test the first support at 0.6221. If the first support is broken, we expect the price to hit the second support at 0.6160.



Trading Range