Technical Analysis and Review for 28 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

  • Bank of Japan keeps all the usual monetary policy settings in October. USD/JPY further decline expected

  • US stocks and bonds sharply drop after economy returns to growth

  • Oil prices drop overnight as China widened its COVID lockdown

  • EUR/USD sharply drops below parity after dovish ECB interest rate decision

USD/JPY: INTRADAY BEARISH/CAUTION

  • Overnight the price has had bearish momentum. Price retraced to the support level at 145.31 and has been seesawing in a large range since. If bearish momentum continues, we expect the price to retrace to the third support at 143.49.

  • Bank of Japan interventions are impacting this pair along with falling US treasury bond yields, therefore, further downside is expected.

Pivot 146.12

Our Preference:

Short positions below 146.12 with targets 145.31, 144.30, 143.31


Alternative Scenario:

Above 146.12 long positions with targets 147.13, 147.94, 148.95


EUR/USD: INTRADAY BEARISH
  • The price may continue in a downward trend if it breaks the 0.9920. Alternatively, the price may rise to the first resistance at 1.0055.

Pivot 1.0006

Our Preference:

Short positions below 1.0006 with targets 0.9918, 0.9869, 0.9781


Alternative Scenario:

Above 1.0006 long positions with targets 1.0055, 1.0143, 1.0192



GBP/USD: INTRADAY RANGING
  • We are bullish biased that the price will break through the first resistance at 1.1627 and head towards the second resistance at 1.1690. If it breaks through it will then head to the third resistance at 1.1728. Alternatively, it may retrace to the first support at 1.1526 and will possibly range between the first support and resistance.

Pivot 1.1589

Our Preference:

Long positions above 1.1589 with targets 1.1627, 1.1690, 1.1728


Alternative Scenario:

Below 1.1589 short positions with targets 1.1526, 1.1488, 1.1425


USD/CHF: INTRADAY BULLISH
  • On the 4 -hour price is showing short term bullish momentum and is currently testing the first resistance at 0.9943. If it breaks through it may hit the second resistance 0.9979.

  • Alternatively, price may retrace back to the first support at 0.9856, if it breaks through this it will head to the second support at 0.9802, passing the 200 SMA level.

Pivot 0.9892


Our Preference:

Short positions below 0.9892 with targets 0.9856, 0.9802, 0.9769


Alternative Scenario:

Long positions above 0.9892 with targets 0.9943, 0.9979, 1.0030


XAU/USD: INTRADAY CAUTION

  • On the 4-hour chart price is still in a descending trendline, which is bearish, indicating the price may retrace back to the second support at 1646.81

  • However, the price is above the Ichimoku cloud, which indicates the price may test the first resistance at 1671.38, if it breaks this, we expect the price to hit the third resistance at 1679.37

Pivot 1663.09


Our Preference:

Short positions below 1663.09 with targets 1655.10, 1646.81, 1638.82


Alternative Scenario:

Long positions above 1663.09 with targets 1671.38, 1679.37, 1687.66


AUD/USD: INTRADAY BEARISH
  • Bearish MACD signals as first resistance fails to break. We are bearish that the price will head to the third support at 0.6314.

Pivot 0.6467


Our Preference:

Below 0.6467 short positions with targets 0.6411, 0.6370, 0.6314


Alternative Scenario:

Long positions above 0.6467 with targets 0.6508, 0.6564 0.6605


NZD/USD: UNDER PRESSURE
  • Overnight there has been some price correction and retracement. If it continues, we expect the price to retrace to the first support at 0.5788. Alternatively, the price may head back up to retest the previous high at 0.5912.

Pivot 0.5830

Our Preference:

Below 0.5830 short positions with targets 0.5788, 0.5748, 0.5706


Alternative Scenario:

Long positions above 0.5830 with targets 0.5870, 0.5912, 0.5952


USD/CAD: SHORT TERM BULLISH
  • Although bearish on the 4-hour chart, we are seeing short term bullish movement because oil is dropping. If it continues, price may head towards the second resistance at 1.3692 and then to the third resistance at 1.3757.

  • Alternatively, if bearish momentum continues, we expect price to head to the first support at 1.3494, and then to rebound to the first resistance at 1.3637

Pivot 1.3563

Our Preference:

Long positions above 1.3563 with targets 1.3628, 1.3692, 1.3757


Alternative Scenario:

Below 1.3563 short positions with targets 1.3499, 1.3434, 1.3370


Crude Oil WTI Futures: INTRADAY RANGING
  • We are expecting oil to retrace to the third support at 85.21 and then to head back up towards the first resistance at 90.13.

Pivot 88.73

Our Preference:

Long positions above 88.73 with targets 90.13, 91.19, 92.59


Alternative Scenario

Below 88.73 short positions with targets 87.67, 86.27, 85.21