Daily Forecast - 28 October 2016
AUDUSD Spot
AUDUSD headed for strong support on the daily chart at 7565/55 & even stronger support on the weekly chart at 7520/10. This would be an excellent buying opportunity if hit. Try longs with stops below 7470. Minor resistance at 7585/90 but above 7610 could target 7640/45. Just be aware that a break above 7650 targets 7680/85. NOTE: NZDUSD has strong longer term support at 7050/40 for a buying opportunity with stops below 6980.
USDJPY Spot
USDJPY Fibonacci resistance at 105.30/40 the main challenge for bulls today & therefore bulls require a weekly close tonight above 105.50 for a further bullish buy signal. We then look for 105.85/90 & 106.40/50, perhaps as far as 200 day moving average resistance at 107.15/25.
First support at 104.90/80 is the most important of the day. Bulls must hold above here for obviously reasons. Longs need stops below 104.40. Just be aware that the last line of defence for bulls is support at 104.10/00. A bounce from here gives them a chance to push back to retest trend line resistance at 104.70/80. A weekly close below 104.00 is a sell signal for next week.
EURUSD Spot
EURUSD just managed to hold 1.0891/95 on the sell off & to repeat the pair are stable in oversold conditions but may take days to build a base & start a recovery. Again, holding above 1.0891/95 re-targets 1.0920/23 then 1.0945 but strong resistance at 1.0970/80 likely to see a high for the day if reached. Shorts need stops above 1.1010.
Failure to hold above 1.0891/95 risks a retest of support at 1.0860/50. Longs need stops below the March low at 1.0825/20. A break below here kills the positive signal & initially targets 1.0790/80 then 1.0755/50.
GBPUSD spot
GBPUSD holding below 1.2200/1.2190 re-targets 1.2140/30 before important 3 week lows at 1.2095/1.2085, which also held again this week. If we continue lower we could look for weak support at 1.1930/10.
First resistance at 1.2190/1.2200 but above here re-targets 1.2270/80, perhaps as far as resistance at 1.2325/35. This is also 2 week highs but a break higher this week could target strong resistance at 1.2440/60. This is also the 3 week high, but above here targets 1.2610/30, then some resistance at 1.2660/80. Further gains could target 1.2760/80, perhaps as far as resistance at 1.2805/25.
EURGBP Spot
EURGBP holding above 8935/40 allows a retest of strong resistance at 8975/79. Be aware that a break higher targets 9010 then 9025 & perhaps as far as 9040.
First support at 8935/40 now the most important support for today & longs need stops below 8900. A break lower retests the 2 week lows at 8881/77. A break lower this week initially targets 8850/45.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.