LeTechs Forex Blog - Forex Technical Analysis on 18 October 2016

18 Oct

Forex Technical Analysis on 18 October 2016

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Daily Technical Analysis on 18th October 2016

Today’s Technical Pairs: EURUSD, GBPUSD, USDJPY.

EURUSD

The dollar grew across its main rivals to Seven-Month high on Week start. The US currency was adept to extend its growth among optimistic US data which reinforced trader’s hopes over the Fed rate hike this December. The Euros partly regain and was able to change the majority of its losses during the trades on yesterday. The ongoing recovery might be attributed to some profit taking from bears after the Weekend’s sell-off. Buyers pushed the pair to the resistance level of 1.1000. Yet, bulls lost to regain the position and the value slightly rolled rear.

The euro quotes tested the 50-EMAs, over the level of 1.1000 in 1HR chart. The 50-EMAs acted as a barrier and ignored the value downwards. All moving averages of 50, 100 & 200 are moving lower. The resistance finds at 1.1000 levels, the support stays at 1.0950 levels.

MACD indicator stands in the negative zone histogram stays at the equal level which hints the seller’s strength. RSI indicator is holding close to the oversold region.

GBPUSD

The pound stands below the pressure among growing concerns over the hard Brexit. The neutral phase that begins last week is yet intact. The cable gapped downside at the open on yesterday. The value moved downwards from 1.2182 to 1.2153 levels. The pair widens its losses following the gap and remains in a tight range between 1.2140 - 1.2200 during the course of the full session.

The sterling stays below bearish 50-EMA which limits its growth in the 1HR chart. The moving averages cut down with their decline, going downside in the 1HR chart. The resistance seems in 1.2200 levels, the support appears in 1.2100 levels. Indicator MACD is in the negative zone grew which hints the seller’s spot weakening. RSI indicator is consolidating around the oversold region. Currently, we advise remains in neutral. We predict further sideways trades in the next sessions possible.

USDJPY

The USDJPY pair conserved its bid tone following the positive US retail sales report which pointed that the Fed is driving nearly to raise the rates before the New-year. The pair remained in an upward channel on yesterday. The value jumped away from the upper limit of the channel and is attempting with the 104.00 support levels to go decline additional.

The US dollar quotes approached the bullish 50-EMA in the 1HR chart. The 50-EMA gives a strong support for the value. All moving averages are directing higher. The resistance can be set at 105.00 levels; the support will be at 104.00 levels. MACD is in the positive zone histogram stands at the same level which hint’s the buyer’s majority. RSI indicator is within the overbought region.

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