Markets will keep an eye on the development of Italy’s budget. China grew slower than expected. The Philly Fed index dipped from 22.9 to 22.2 vs. 19.7 forecast. Brexit negotiations have also run into new trouble. The FOMC minutes were as expected and showed that the Fed is on track to deliver rate hikes until they reach the 3% neutral rate.
Technical Analysis
EURUSD
EURUSD is trading under selling pressure on a daily time frame. The price is trading in a downward wave and this confirms that the trend is skewed to the downside. Having said this, the price is firmly trading below the 100 and 200-day moving averages, which shows that there are higher chances for further declines. Currently, there is a battle between the price and the major support level at 1.1420. If the price breaks below that level, the odds will be even stronger that the uptrend will shape up from there. The Balance of Power shows that the bears are still controlling the momentum. We need to see this continue and that would support the above argument. The resistance is shown by the green horizontal line, which is the highest point the price made on 27th of September. The support is shown by the red line, which is the lowest point formed on 18th June 2017.
GBPUSD
GBPUSD trading has failed to break the major resistance at 1.3250s as shown on the daily time frame. The price is trading under strong selling pressure. This confirms that the trend is skewed to the downside. Having said this, the price is firmly trading below 200-day moving average, which shows that there are higher chances that the price may break below the support level of 1.2905. (The nick line for the double top pattern). Currently, there is a battle between the price and the 50-day moving average and if the price closes below it, the odds will be even stronger that the downtrend will shape up from there.
The Balance of Power shows that the bears are still controlling the momentum. We need to see this continue and that would support the above argument.
The resistance is shown by the green horizontal line, which is the highest point the price made on 21st September. The support is shown by the red line, which is the lowest point formed on 5th September.
USDJPY
The pair is trading within a rising channel on the daily time frame. The price is trading near the lower boundary of that channel. Having said this, the price is firmly trading above the 50 and 200-day moving averages which shows that there are higher chances that the price may rebound. The Balance of Power shows that the bears are still controlling the momentum, we need to see this fading and that would support the above argument. The resistance is shown by the green horizontal line which is the point which the price made on the 8th of October. The support is show by the red line which is the lowest point formed on the 10th of September.
XAUUSD
The yellow metal has broken the descending triangle on a daily time frame. The price is trading within the breakout phase and this confirms that the trend is skewed to the upside. Having said this, the price is firmly trading above the 50 and 200-day moving averages, which shows that there are higher chances that the price may continue the bullish momentum. The Balance of Power shows that the bulls are still controlling the momentum. We need to see this continue and that would support the above argument. The resistance is shown by the green horizontal line, which is the highest point the price made on the 12th of July. The support is shown by the red line which is the lowest point formed on 10th October.
WTI
Oil trading has rebounded from the lower boundary of its upward channel on a daily time frame and this confirms that the trend is skewed to the upside. Having said this, the price is firmly trading above the 200-day moving average, which shows that there are higher chances that the price may rebound from this level toward the shown resistance level. Currently, there is a battle between the price and the 50-day moving average and if the price breaks towards the upside, the odds will be even stronger that the uptrend will shape up from there. The Balance of Power shows that the bears are still controlling the momentum. We need to see this fading and that would support the above argument.
The resistance is shown by the green horizontal line which is the highest point the price made on 17th October. The support is shown by the red line, which is the lowest point formed on 21st August.
Dow Jones
Dow Jones has broken its upward channel on a daily time frame. The price is trading in a downward wave and this confirms that the trend is skewed to the downside. Having said this, the price is firmly trading below the 100 and 200-day moving averages, which shows that there are higher chances that the price may continue downward wave. Currently, there is a battle between the price and the 200-day moving average and if the price closes below it today, the odds will be even stronger that the downtrend will shape up from there. The Balance of Power shows that the bears are still controlling the momentum, we need to see this continue and that would support the above argument. The resistance is shown by the green horizontal line, which is the point the price made on 10th October. The support is shown by the red line, which is the point formed on 12th July.
