Market Analysis: 25 October 2016
By Christala Parmaxi
The highlight of the day will be ECB President’s Draghi speech on “Stability, Equity and Monetary policy” at 18:30 server time. Earlier, during the US session, we are looking for October’s CB Consumer Confidence Index which is expected to drop by almost 3 units at 101.0. Tomorrow during the early Asian session at 03:30 the Australian Consumer Price Index for the 3rd quarter of 2016 will be published on Wednesday at 03:30 server time; expectations lay at 0.5% which is 10 points higher than the previous figure.
The main pair is still trending below the resistance level of 1.09 and above the support of 1.085. The volatility of the pair is minimal while it creates higher lows and lower highs, forming a symmetrical triangle pattern. The indicators are on bearish levels supporting the penetration of the triangle to the downside, but this should be confirmed by the price firstly. The probability of the short term timeframe is bearish, with the supports of 1.086 and 1.085 and the resistances of 1.09 and 1.092.
The Cable is moving within a symmetrical triangle on the hourly chart and we are looking for a break either to the upside or to the downside to confirm a new trend. The indicators are on neutral levels but overall the picture is negative with the symmetrical triangle to be deemed as a correction of the prevailing downtrend. The valid support levels are near the psychological level of 1.22 and 1.2175 while the resistances to be watched are near SMA100 at 1.225 and 1.23.
The Gopher broke the resistance level (now support) of 104.5 and it is currently trading above it. Average Directional Index indicates positive direction while the price is walking on Bollinger’s upper band giving signals for further upside move. Both MACD and RSI are on bullish territories while the price is currently moving sideways until further upside stimulus by the bulls. The support levels to be watched are near 104.5 and 104 while the resistance levels are near the psychological level of 105 and 105.7.
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