Technical Analysis and Review for 27 October 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

  • Confidence returning to the UK economy, markets stabilise, and the pound rises against the dollar even though the fiscal statement has been delayed until 17th November. GBP/USD $1.16 highest since mid-September.

  • The European Central Bank meet today. ECB expected to raise rates by 0.75% to 1.5% to rein in Eurozone inflation which has hit 9.9%. EUR/USD currently above parity.

  • US GDP expected to have rebounded in the third quarter - figures suggest that recession is not already underway, but economists remain pessimistic, dollar slips as bets mount for less hawkish FED.

  • Overnight Asia shares rose on growing expectations that major central banks could start slowing the pace of interest rate hikes in coming months, while the dollar's retreat lifted commodities and pushed treasury yields lower.

USD/JPY: INTRADAY BEARISH

  • Overnight the price has had bearish momentum. Price is currently testing the support level at 145.60. If bearish momentum continues, we expect the price to retrace to the third support at 143.41.

Pivot 147.00

Our Preference:

Short positions below 147.00 with targets 145.60, 144.81, 143.41


Alternative Scenario:

Above 147.00 long positions with targets 147.79 149.19, 149.98



EUR/USD: INTRADAY BULLISH
  • On the 4-hour, price is continuing to move in an ascending direction. We are expecting the price to rise to the first resistance at 1.0136. Alternatively, the price may retrace back to the first support at 0.9989. NB: ECB Interest Rate Decision 13.15pm GMT.

Pivot 1.0040

Our Preference:

Above 1.0040 long positions with targets 1.0136, 1.0187, 1.0283


Alternative Scenario:

Short positions below 1.0040 with targets 0.9989, 0.9893, 0.9842



GBP/USD: INTRADAY BULLISH

  • We are bullish biased that the price will break through the first resistance at 1.1701 and head towards the second resistance at 1.1775. If it breaks through it will then head to the third resistance at 1.1910. Alternatively, it may retrace to the first support at 1.1492.

Pivot 1.1566

Our Preference:

Long positions above 1.1566 with targets 1.1701, 1.1775, 1.1910


Alternative Scenario:

Below 1.1566 short positions with targets 1.1492, 1.1357, 1.1283



USD/CHF: INTRADAY BEARISH
  • Overnight price continued to retrace, if this bearish momentum continues, we expect price to hit the first support at 0.9822, it it breaks through this it will head to the second support at 0.9780.


Pivot 0.9893

Our Preference:

Short positions below 0.9893 with targets 0.9822, 0.9780, 0.9709


Alternative Scenario:

Long positions above 0.9893 with targets 0.9935, 1.0006, 1.0048



XAU/USD: INTRADAY CAUTION

  • On the 4-hour chart price is still in a descending trendline, which is bearish, indicating the price will retrace back to the second support at 1637.04.

  • However, the price is above the Ichimoku cloud, which indicates the price may test the first resistance at 1676.87, if it breaks this, we expect the price to hit the third resistance at 1702.84.

Pivot 1663.01


Our Preference:

Long positions above 1663.01 with targets 1676.87, 1688.98, 1702.84


Alternative Scenario:

Short positions below 1663.01 with targets 1650.90, 1637.04, 1624.93



AUD/USD: INTRADAY BULLISH
  • With the price above the Ichimoku cloud, we are bullish that the price will test the first resistance at 0.6548 and then head towards the second resistance at 0.6698.

Pivot 0.6460


Our Preference:

Long positions above 0.6460 with targets 0.6548, 0.6698, 0.6686


Alternative Scenario:

Below 0.6460 short positions with targets 0.6410, 0.6322, 0.6272



NZD/USD: BULLISH
  • Bullish momentum continues, and price is heading back up to the first resistance at 0.5879. If it breaks through this, we expect it to head towards the second resistance at 0.5923.

Pivot 0.5802

Our Preference:

Long positions above 0.5802 with targets 0.5879, 0.5923, 0.6000


Alternative Scenario:

Below 0.5802 short positions with targets 0.5758, 0.5681, 0.5637




USD/CAD: INTRADAY BEARISH
  • Bearish momentum continued overnight, we expect price to head to the first support at 1.3494, and then to rebound to the first resistance at 1.3637

Pivot 1.3573

Our Preference:

Below 1.3573 short positions with targets 1.3494, 1.3430, 1.3351


Alternative Scenario:

Long positions above 1.3573 with targets 1.3637, 1.3716, 1.3780



Crude Oil WTI Futures: INTRADAY CAUTION
  • Overnight there has been strong bullish momentum on oil. We are expecting oil to retrace to the pivot point at 86.82 and then to head towards the first resistance at 89.50.

Pivot 86.82

Our Preference:

Below 86.82 short positions with targets 85.23, 82.55, 80.96


Alternative Scenario

Long positions above 86.82 with targets 89.50, 91.09, 93.77