Technical Analysis and Review for 22 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 Dollar falls after advancing to a 10-day high Monday as investors sought shelter in the currency amid covid concerns.

  • Private-sector activity in the euro zone contracted for a fourth month in October, reinforcing expectations that the bloc is headed for a recession

  • Two Fed reserve officials reinforced expectations the central bank will slow their pace of interest rate increases next month, even as they stressed the need to keep tightening

  • Oil steadies to around $80 per barrel after a volatile session as investors juggle a clouded supply outlook and concerns over weaker demand in virus hit China

  • New Zealand posts record annual trade deficit as imports surge, suggesting domestic demand is holding up strongly in the face of sharply rising interest rates

  • Stocks were mixed in Asia amid fragile sentiment as investors weighed the impact of covid infections in China

  • Major currencies' directional outlook is mixed.

Key Events
  • US Richmond Fed manufacturing index

  • OECD releases Economic Outlook

  • Fed's Loretta Mester and James Bullard speak

USD/JPY: Intraday Bullish
  • On the 4-hour chart the price is reversing into bullish territory and is crossing the Ichimoku cloud.

  • Although there has been a slight retracement in the Asian session, the asset continues to range between 141.70 and 142.10 and is resisting moving lower.

  • Look for the DXY to strengthen for a signal to drag the asset higher with a price target of 142.87

  • Alternatively, look for a breakout below 140.52 with price target 139.44

  • Price is currently at 141.84 at time of writing.

Pivot 140.52

Our Preference:

Above 140.52 long positions with targets 142.87, 143.60, 144.95


Alternative Scenario:

Short positions below 140.52 with targets 140.29, 139.44, 138.71

EUR/USD: Intraday Sideways
  • On the 4-hour chart the price is bullish and is above the Ichimoku cloud however, there has been sideways price action during the Asian session.

  • The price may continue to turn up and test the 1.0300 previous support level.

  • Alternatively, look for the price to drop back to the first support at 1.0196

  • The price is at 1.0257 at time of writing.

Pivot 1.0271

Our Preference:

Above 1.0271 long positions with targets 1.0318, 1.0393, 1.0440


Alternative Scenario:

Short positions below 1.0271 with targets 1.0196, 1.0149, 1.0074


GBP/USD: Intraday Ranging
  • On the 4-hour the price is bullish and is above the Ichimoku cloud. However, the asset has traded sideways during the Asian session after attempting a rebound below the support of 1.1800.

  • Wait for the price to break above 1.1850 for a stronger bullish signal with a price target of 1.1913 and 1.2002

  • Alternatively, below 1.1840 aim for price targets at 1.1757, if it breaks through these support levels, the next strong support is at 1.1601

  • The price is currently at 1.1845 at time of writing


Pivot 1.1846

Our Preference:

Long positions above 1.1846 with targets, 1.1913, 1.2002, 1.2069


Alternative Scenario:

Below 1.1846 short positions with targets 1.1757, 1.1690, 1.1601


USD/CHF Intraday Consolidating
  • On the 4-hour chart the price is moving in an ascending direction and is breaking into the Ichimoku cloud and is now consolidating. A breakout to the upside is expected

  • Look for the price to break well above 0.9574 for a stronger bullish direction.

  • Alternatively, look for the price to drop towards 0.9548 for a stronger sell signal.

  • The price is currently at 0.9571 at time of writing.

Pivot 0.9574


Our Preference:

Long positions above 0.9574 with targets 0.9617, 0.9643, 0.9686

Alternative Scenario:

Short positions below 0.9574 with targets 0.9548, 0.9505, 0.9479


XAU/USD: Intraday Bearish / Caution
  • On the 4-hour chart price is descending and breaking the Ichimoku cloud.

  • During the Asian session the price continues its retracement lower with the price falling to a low of 1738.12.

  • If the price continues to drop, we expect it to retest the first support at 1735.65

  • Alternatively, if the long-term bullish trend continues, the price may retest the 1760.00 resistance

  • The RSI is mixed and calls for caution

  • Price is currently at 1742.00 at time of writing.

Pivot 1740.32

Our Preference:

Short positions below 1740.32, with targets 1735.63, 1733.43, 1728.74


Alternative Scenario:

Long positions above 1740.32, with targets 1742.52, 1747.21, 1749.41


AUD/USD: Intraday Bullish
  • On the 4-hour chart, the price is bullish and above the Ichimoku cloud. However, during the Asian session the price has dropped towards the 0.6607 level.

  • Look for the price to reject the 0.6600 level, for a stronger downside signal with the price retracing to the third support at 0.6565.

  • Alternatively, look for the price to break above 0.6625 for stronger bullish momentum and a price target of 0.6665

  • Price is currently at 0.6608 at time of writing.

Pivot 0.6625


Our Preference:

Long positions above 0.6625 with targets 0.6665, 0.6725, 0.6765


Alternative Scenario:

Below 0.6625 short positions with targets 0.6565, 0.6525, 0.6495


NZD/USD: Intraday Bullish
  • On the 4-hour chart the price is bullish and is above the Ichimoku cloud. Expect the price to retest the second support at 0.6153, if it breaks through this, it will move towards 0.6203.

  • Alternatively, look for the price to break the 0.6120 level for further downside momentum with targets 0.6070.

  • We expect the downside to be limited to 0.6070 as we wait for the RBNZ interest rate decision Wednesday, which could bring significant volatility

  • The price is at 0.6120 at time of writing

Pivot 0.6120


Our Preference:

Long positions above 0.6120 with targets 0.6153, 0.6203, 0.6236


Alternative Scenario:

Below 0.6120 short positions with targets 0.6070, 0.6037, 0.5987


USD/CAD: Intraday Bearish
  • On the 4-hour chart the price is moving in an ascending direction and breaking further into the Ichimoku cloud, if the bullish momentum continues, the price may retest the first resistance at 1.3509 if it breaks this it may head towards the second resistance at 1.3565

  • Alternatively, the price could retrace to the first support at 1.3385

  • Price is currently at 1.3420 at time of writing

Pivot 1.3441

Our Preference:

Below 1.3441 short positions with targets 1.3385, 1.3317, 1.3261


Alternative Scenario:

Long positions above 1.3441 with targets 1.3509, 1.3565, 1.3633

Crude Oil WTI Futures: Intraday Bullish
  • On the 4-hour, the overall bias is bearish and is below the Ichimoku cloud. However, there has been a slight recovery during Asian trading and may continue to rise to retest 82.40

  • Alternatively, the price may continue to drop to test the first support at 79.89

  • The RSI is bullish and calls for further upside with caution

  • Price is currently at 80.17 at time of writing.

Pivot 80.18

Our Preference:

Long positions above 80.18, with targets 80.33, 80.62, 80.77


Alternative Scenario

Below 80.18 short positions with targets 79.89, 79.74, 79.45



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