Analysis for October 20th, 2015
EUR USD, “Euro vs US Dollar”
Eurodollar is moving downwards with the target at 1.1300. After that, the instrument may return to 1.1400 and then form another descending structure with the target at 1.1242.
GBP USD, “Great Britain Pound vs US Dollar”
Pound is consolidating; the pair has formed another triangle pattern, which may be considered as the start of the correction towards 1.5320. We think, today, the price may reach a new high and then continue falling inside the correction. Later (an alternative scenario), the pair may form another ascending structure towards 1.5550 and then continue falling inside the downtrend to break 1.5160.
USD CHF, “US Dollar vs Swiss Franc”
Franc has broken pennant consolidation pattern upwards and right now is forming an upside continuation pattern. We think, today, the price may reach 0.9630 and then fall towards 0.9421. This decline can only be considered as an alternative scenario to extend the correction towards triangle’s lower border. Later, the pair may form another ascending structure to reach 0.9870.
USD JPY, “US Dollar vs Japanese Yen”
Yen is consolidating inside a narrow trading range and may extend its growth towards 120.00. An alternative scenario suggests that the pair may move upwards. But the main scenario remains the same – the market is expected to continue falling to reach 115.00.
AUD USD, “Australian Dollar vs US Dollar”
Australian Dollar is still consolidating inside triangle pattern. We think, today, the price may fall to reach 0.7170 (at least) or even continue this correction towards 0.7070.
USD RUB, “US Dollar vs Russian Ruble”
Ruble continues forming the third descending wave. The price is expected to reach the target at 60.00. An alternative scenario suggests that the pair may grow towards 63.70 and then fall to reach 60.00. After that, the instrument may start the correction towards 64.50 and then continue falling to reach the target at 57.00.
XAU USD, “Gold vs US Dollar”
Gold has broken the ascending channel and right now is forming a new consolidation channel as a continuation pattern. The target is at 1155.00. After that, the instrument may grow towards 1198.50 and then return to 1155.00. This entire growth may be considered as an alternative to scenario to continue the correction. The main scenario remains the same – the market is expected to continue falling inside the downtrend towards 830.00.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.