Technical Analysis and Review for 25 October 2022


Fundamentals

  • Pound stabilises as Rishi Sunak announces challenging economic conditions ahead

  • Asia markets struggle as Xi Jinping leadership team spook markets

  • Euro consolidating as it waits for expected interest rate hike later this week.

  • The dollar is slightly weaker as Fed Reserve takes dovish stance following a slowdown in the US economy.

  • Japanese finance minister refuses to comment on whether or not it ordered a recent intervention to save the currency from further lows.

USD/JPY: INTRADAY BULLISH

  • We are expecting price to re-test the first resistance today at 149.34 if bullish momentum continues. The pair is currently trading sideways.

Pivot 148.07

Our Preference:

Long positions above 148.07 with targets 150.61, 152.22, 154.76


Alternative Scenario:

Below 148.07 short positions with targets 146.46 143.92, 142.31


EUR/USD: INTRADAY BEARISH

  • On the 4-hour, price is moving in a descending direction. We are expecting the price to drop to the first support at 0.9822.

Pivot 0.9861

Our Preference:

Below 0.9861 short positions with targets 0.9822, 0.9769, 0.9730


Alternative Scenario:

Long positions above 0.9861 with targets 0.9914, 0.9953, 1.0006


GBP/USD: INTRADAY BULLISH

  • We are bullish biased that the price will break through the first resistance at 1.1373 and head towards the second resistance at 1.1466.

Pivot 1.1315

Our Preference:

Long positions above 1.1315 with targets 1.1373, 1.1466, 1.1524


Alternative Scenario:

Below 1.1315 short positions with targets 1.1222, 1.1164, 1.1071


USD/CHF: INTRADAY BULLISH

If bullish momentum continues, we expect the price to re-test the first resistance at 1.0045


Pivot 0.9995

Our Preference:

Above 0.9995 long positions with targets 1.0045, 1.0081, 1,0131


Alternative Scenario:

Short positions below 0.9995 with targets 0.9959, 0.9909, 0.9873


XAU/USD: INTRADAY BEARISH

  • We are expecting the price to retest 1660.00 before heading back down to the first support at 1642.88

Pivot 1650.55


Our Preference:

Below 1650.55 short positions with targets 1646.14, 1642.88, 1638.47


Alternative Scenario:

Long positions above 1650.55 with targets 1653.81, 1658.22, 1661.48


AUD/USD: INTRADAY BEARISH

  • We are bearish that the price will drop to the second support at 0.6192

Pivot 0.6333


Our Preference:

Short positions below 0.6333 with targets 0.6253, 0.6192, 0.6112


Alternative Scenario:

Above 0.6333 long positions with targets 0.6394, 0.6474, 0.6535


NZD/USD: SHORT-TERM BULLISH

  • There is short-term bullish momentum, we think price is heading back up to 0.5910 before coming back down to the first support at 0.5638

Pivot 0.5715

Our Preference:

Short positions below 0.5715 with targets 0.5638, 0.5579, 0.5502


Alternative Scenario:

Above 0.5715 long positions with targets 0.5774, 0.5851, 0.5910


USD/CAD: INTRADAY BEARISH

  • If bearish momentum continues, we expect price to head to the second support at 1.3526, which is the previous low.

Pivot 1.3695

Our Preference:

Below 1.3695 short positions with targets 1.3615, 1.3526, 1.3446


Alternative Scenario:

Long positions above 1.3695 with targets 1.3784, 1.3864, 1.3953


Crude Oil WTI Futures: CONSOLIDATION

  • We are expecting price to head towards the first support at 84.35

Pivot 84.67

Our Preference:

Below 84.67 short positions with target 84.35, 84.12, 83.80


Alternative Scenario

Long positions above 84.67 with target 84.90, 85.22, 85.45