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20 Oct

Forex & Gold Technical Analysis on 20 October 2016

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Daily Technical Analysis on 20th October 2016

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

EURUSD

The euro strengthened across the US dollar on the rear of the weak data and Fed officials ambiguous statement about the rate. The bearish trend is still in the 4HR chart. The pair was decisively trading under the level of 1.1000. The market was fairly equitable during the Asian session on last day. The value remains between the mark level of 1.0970 and 1.1000. The euro jumped down towards 1.0950 levels in the European session.

The euro quotes smashed the 50-EMAs and tested the 100-EMAs in the 1HR chart in the Asian session but the 100-EMAs ignored the value downwards. The pair was in-between the 50 and 100 EMAs during the early European trades and moved under the lines before the US session opening. All moving averages accelerated reduce in the 1HR chart. The resistance finds in 1.1000 levels, the support comes in 1.0950 levels. Indicator MACD is in the negative zone decreased which confirms the power of sellers. RSI oscillator headed towards the oversold region. Technically, negative reports handled the bearish pressure.

GBPUSD

The pound strengthened on yesterday due to the positive labor market report. The unemployment level has still unchanged despite the Brexit referendum results. The pair remained in bull's hands on last day. Bulls forced the price towards 1.2300 levels. The sterling was contending with the resistance level of 1.2300 throughout the day.

The pound quotes smashed the 50 and 100 EMAs and snapped the 200-EMAs in the 1HR chart. The 200-EMAs became a primary barrier for the value which was struggling to take it out on the day. The 50-EMAs intersect the 100-EMA upwards in the 1HR chart. The moving averages 50, 100 and 200 remains neutral. The resistance seems at 1.2300, the support lies at 1.2200 levels. MACD moved into the positive zone grew which hints the seller’s positions weakening. RSI surrounded the oversold region. Our short-term scenario was bullish for the pair.

USDJPY

The US dollar was sluggish against its main peers after the fresh US data. Traders were discreet ahead of US Building Permits publish. In the 4HR chart for the pair presents a moderate bearish possible. The price finally cracks the consolidation range and made a fair break under the level of 104.00. Sellers forced the quotes towards 103.00 levels.

The 50-EMAs clogged the downside momentum in the 4HR chart. The moving averages of 50, 100 and 200 extended their increase. The resistance currently found at 104.00 levels, the support seen at 103.00 levels. MACD starting to enter the oversold region decreased which hints the buyer’s positions weakening. RSI jumped towards the overvalued levels.

The pair is approaching the 103.00 levels now. A movement under the level would hint that the immediate upward pressure eased. In this outlook, sellers will force the price additional towards the 102.50 area. A bounce off the 103.00 level will comes back into the buyer’s side.

XAUUSD

Gold prices grew among volatile over the timing of an upcoming Fed rate hikes. The gold holds the upbeat tone vs. its US peer on last day. The pair finally left the range and extended its growth throughout the European session on last day. Buyers led the value from the level 1260 towards 1270 levels. The bullish spike faded over the quick resistance where prices spent the whole day.

The pair smashed the 50-EMAs and approached the 100-EMAs which blocked its growth in the 4HR chart. The 50-EMA remains neutral, the 100 and 200 EMAs are still moving downside. The resistance will be at 1270 levels, the support comes in at 1260 levels. MACD is in the positive zone which hints the seller’s positions weakening. Indicator RSI is currently moving north side which confirms the upward movement. The overall scenario remains bullish.

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