Market Analysis: 25 October 2016

Market Analysis: 25 October 2016

By Christala Parmaxi

Economic Calendar

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.

Technical View

EURUSD

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.

EURUSD

EURUSD

GBPUSD

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.

GBPUSD

GBPUSD

USDJPY

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.

USDJPY

USDJPY

 

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Share

This blogpost is brought to you by Harborx.com. Check out our website to see how your trading experience can be simplified.

Leave a Reply

Your email address will not be published. Required fields are marked *