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GBPUSD Technical Analysis​

The GBPUSD pair resumes its negative trades to support the continuation of the bearish trend for the rest of the day, reminding you that our main targets begin at 1.1055 and extend to 1.0920 as next main stations, supported by the negative pressure formed by the EMA50, while the price needs to hold below 1.1290 to continue the expected decline.

The expected trading range for today is between 1.1080 support and 1.1220 resistance. The expected trend for today: Bearish.​

 

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GBPUSD - Under the pressure of the domestic political crisis in the UK

This week can be seen as the official start of a new race for prime minister after incumbent and Conservative Party chief Liz Truss announced her resignation amid widespread criticism of her proposed tax reform. Currently, only one real favorite is known – the former finance minister Rishi Sunak, supported by most current officials (178 out of 357 deputies). In turn, former Prime Minister Boris Johnson, who announced his readiness to compete for the post on Friday, has already fallen out of the race, having failed to enlist the support of at least 100 party members and gained only 59 votes. The electoral process must be completed by October 28. Today will be presented data on business activity in the manufacturing and services sectors, from which analysts expect a continued decline from 48.4 points to 48 points and from 50 points to 49.6 points, respectively.

The trading instrument moves within the long-term downward channel toward the resistance line.

Resistance levels: 1.148, 1.18 | Support levels: 1.1178, 1.0925​

 

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BTCUSD -Market uncertainty persists​

The situation remains uncertain: on the one hand, in the long term, the position of the cryptocurrency market continues to be pressured by an increase in the interest rate in the United States, which may accelerate since inflation cannot be slowed down, and the deterioration of the global economic situation, which can reduce the activity of miners due to an increase in electricity prices. On the other hand, the potential for a serious decline in quotes seems to be limited since investors who want to abandon digital assets have already done so. A short-term positive impact on the trading instrument is the addition of support for trading cryptocurrencies in the United States by one of the largest brokers, Oanda, which has entered into a partnership with Paxos itBit, a regulated cryptocurrency platform, which should support the interest of ordinary American investors in digital assets.

The trading instrument remains within the sideways range of 19550–19000, having unsuccessfully tested its upper limit today and started to decline. If the zone of 19000–18750 is broken down, the quotes can reach 18000 (Murrey [1/8]), 17500 (Murrey [0/8]), and if they consolidate above 19550, the growth will be able to resume to 20000 (Murrey [4/8]) and 20625 (Murrey [3/8]).

Resistance levels: 19550, 20000, 20625 | Support levels: 18750, 18000, 17500​

 

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S & P 500 - The US stock market is trying to recover

At the moment, major market participants are publishing corporate financial statements, which are not as positive as experts expected. According to the analytical agency Refinitiv, the profit of 88 companies that reported for the past quarter decreased by an average of 2.6%. The biggest loser on Friday was stocks of Snap Inc., owner of the Snapchat, which shed more than 30.0% amid historically low revenue growth of 6.0% year-on-year. The focus of increased attention of investors is also Twitter Inc., in which the administration of the President of the United States showed interest in terms of initiating possible checks. Telecom operator Verizon Inc., which reported a 24.0% drop in third-quarter net income, is also trading below the market.

The index quotes continued the local corrective trend, forming a Head and Shoulders reversal pattern. Technical indicators keep the sell signal, which has noticeably weakened recently: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars being in the sale zone.

Support levels: 3665, 3495 | Resistance levels: 3810, 3980​

 

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USDJPY Technical Analysis

The USDJPY pair succeeded to achieve our waited target at 151.3 and approached 152 barriers, but it declined sharply to achieve bearish correction that stopped at 145.45, to rebound bullishly and start covering the losses that it suffered in the previous sessions, at it returns to the main bullish channel to support the continuation of the overall positive scenario.

Therefore, we expect to witness positive trades in the upcoming sessions supported by the positive signal provided by stochastic now, noting that breaking 148.10 followed by 147.15 levels will stop the expected rise and press on the price to achieve additional bearish correction.

The expected trading range for today is between 148 support and 150 resistances. The expected trend for today: Bullish.​

 

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USDJPY within tight track​

The USDJPY pair didn’t show any strong move since yesterday, to fluctuate within tight track, settling above the bullish channel’s support line, thus, no change to the bullish trend scenario that depends on the price stability above 148.5, waiting to get positive motive that assists to push the price to head towards our positive targets that start at 150 and extend to 152.

The expected trading range for today is between 148.2 support and 149.9 resistance. The expected trend for today: Bullish.​

 

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USDCAD Tests the Support​

The USDCAD pair shows negative trades to test the key support 1.3680, as it consolidates above it until now, to keep the bullish trend scenario active for the upcoming period, waiting to head towards 1.3830 initially. Breaching 1.3740 will ease the mission of achieving the expected rise, noting that breaking 1.3680 will stop the positive scenario and put the price under additional negative pressure on the intraday basis.

The expected trading range for today is between 1.3640 support and 1.3790 resistance. The expected trend for today: Bullish.​

 

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FTSE 100 - Results of the elections in the UK pushed the index up

The day before, Rishi Sunak was appointed the new Prime Minister and head of the Conservative Party with 178 of the 355 members of the Conservative faction in the House of Commons having voted for him. The official managed the British economy during the coronavirus pandemic and analysts believe that he is able to lead the country out of the current crisis. Probably, this news has already been taken into account by the market, since even the negative effect of the publication of a report on business activity, which showed a decrease from 48.4 points to 45.8 points in the Manufacturing sector and from 50 points to 47.5 points in the Services sector could not put pressure on the dynamics of the pound.

Quotes of the index continue to try to start corrective growth. Technical indicators are holding a sell signal, which has noticeably weakened recently.

Support levels: 6920, 6710 | Resistance levels: 7090, 7270​

 

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EURUSD - Strong Statistics from Germany supported Euro quotes

The German index of business expectations in October amounted to 75.6 points, which is higher than 75.3 points in September and better than the forecast of 75.0 points. The assessment of the current situation in the region consolidated at 94.1 points, significantly exceeding the pessimistic forecasts of analysts, which suggested a decrease in the indicator to 92.4 points, and the business climate index at 84.3 points, which corresponds to September 84.4 points and exceeds the preliminary scores 83.3 points. According to experts, this data indicates that after five months of pessimistic views, expectations in the country's business circles have finally found a “bottom,” from which a turn in a positive direction can begin.

The trading instrument is moving within the global downwards channel, coming close to the resistance line and demonstrating its readiness to break it.

Resistance levels: 1.0014, 1.0186 | Support levels: 0.9876, 0.9680​

 

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AUDUSD Technical Analysis

The AUDUSD pair breached 0.6397 level strongly to rally upwards and confirms heading towards the next correctional level at 0.6540, to support the continuation of the expected bullish trend for today, noting that breaching the mentioned level will extend the bullish wave to reach 0.6650, while the expected rise will remain valid conditioned by the price stability above 0.6397.

The expected trading range for today is between 0.6430 support and 0.6540 resistance. The expected trend for today: Bullish.​