Intraday Technical Analysis 29 October

Economic data from Friday showed that the Tokyo core CPI rose 1.0% as forecast. This was an unchanged print compared to the month before on an annualized basis.

In the Eurozone, the German Gfk consumer climate was seen to be steady at 10.6 which was above forecasts of 10.5. The NY trading session saw investors watching the GDP report. Data from the U.S. Department of Commerce showed that the U.S. economy advanced 3.5% in the three months ending September 2018. This was higher than the forecasts of a 3.3% increase. Still, compared to the 4.2% increase in the second quarter, the pace of growth was seen to be slowing.

The ECB President Mario Draghi was speaking later in the evening at an event but did not make direct comments to monetary policy.

Looking ahead, the economic data for the day is quiet for most of Asia and Europe. The NY trading session will see the release of the U.S. core PCE price index. Forecasts show that the Fed’s preferred gauge of inflation rose 0.1% on the month following a flat print previously.

Personal spending and income data are expected to rise 0.4% respectively.

EURUSD intraday analysis

EURUSD (1.1392): The EURUSD fell to fresh lows on Friday, but price action quickly recovered from the sell-off. By Friday’s close, the EURUSD was seen bouncing back. However, the resistance level of 1.1435 is likely to keep a lid on the gains. A strong breakout above this level is needed for the EURUSD to potentially breakout higher. To the downside, the continuing downside momentum could push the common currency lower to 1.1315.

GBPUSD intraday analysis

GBPUSD (1.2833): The British pound was seen trading rather muted on Friday. After price action tested the support level of 1.2808, the GBPUSD has been trading flat here. There is a risk that the currency pair could break down below this support level. However, from the daily chart, the GBPUSD is currently trading near the support area of 1.2808 – 1.2683. Therefore, the declines are likely to be limited.

XAUUSD intraday analysis

XAUUSD (1232.68): Gold prices rallied to the resistance area of 1242.25 – 1238.00 level on Friday before easing back. The strong selling at this level pushed gold prices lower, but the consolidation within the rising wedge pattern remains. We expect to see a potential downside breakout in gold. A close below 1225.35 support level could trigger a decline to 1207.00 level. To the upside, gold prices will need to break past the resistance area to post any further gains.