Intraday Technical Analysis 23 October

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Daily Forex Market Preview, 23/10/2018

The U.S. dollar managed to post some moderate gains on Monday amid lack of any fundamentals to go by. Japan’s all industries activity was seen rising 0.5% on the month which beat forecasts of a 0.4% increase.

Canada’s wholesale sales fell 0.1% on the month which missed estimates. Previous month’s data was revised down to 1.1%. The British pound was seen easing back on Monday on concerns about the UK’s government stability in light of the Brexit negotiation.

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The economic calendar for the day will see Japan’s core CPI from the BoJ being released. Core inflation was seen rising 0.5% for the previous month.

The European session will see Germany’s producer prices data coming out. German PPI is expected to rise 0.3% on the month, marking the same pace of increase as the month before.

The NY trading session is quiet with no major releases scheduled. FOMC member Bostic is scheduled to speak later in the evening. The Bank of England Governor, Mark Carney will also be speaking today.

EURUSD intraday analysis

eurusd

EURUSD (1.1456): The EURUSD currency pair extended declines on Monday as price action failed to break past the resistance level of 1.1540. Price action is seen retesting the familiar support area of 1.1450 – 1.1435 level. A break down below this support area will signal further declines as it invalidates the double bottom pattern. However, there is scope for the common currency to maintain the range between the sideways range currently in place.

GBPUSD intraday analysis

gbpusd

GBPUSD (1.2963): The GBPUSD currency pair broke past the support level of the 1.3054 – 1.3028 region. The break down below the support level indicates further declines are likely on the horizon. The next main support is seen at 1.2808. In the near term, any rebound is expected to stall near the recently breached support level which could be tested for resistance. In the event that GBPUSD closes back above this level, we expect a short-term change in the trend.

XAUUSD intraday analysis

xauusdXAUUSD (1224.18): Gold prices managed to consolidate above the support level of 1225.35 before slipping past this level. At the time of writing, gold prices are seen retracing the losses. However, failure to close past the 1225.35 level which could now act as resistance could signal the downside. The lower support at 1207 becomes the first support level of interest which could be tested. To the upside, gold will need to close back above 1225.35 and preferably post a higher high to confirm the upside.

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