EUR/GBP – Falling channel on daily chart

eur gbp forecast

  • Despite Tuesday’s inverted bullish hammer candle stick and a positive follow through in Asia, the failure at falling channel resistance suggests a daily close above the same is essential to suggest a temporary bottom is in place at 0.8880 levels.
  • The channel resistance is seen at 0.8958. A daily close above the same would open doors for a revisit to 0.9068 (Oct 13 high).
  • On the other hand, rejection at falling channel hurdle followed by a break below the Asian session low could yield a sell-off to rising trend line support seen at 0.8840.

 


USD/JPY – Gravestone Doji at critical resistance

usd jpy forecast

  • Despite pair’s rebound from Asian session low of 104.00 levels, caution is advised given the gravestone Doji candle formation yesterday, which marked yet another failure to capitalize on gains above critical resistance level of 104.32 (September highs).
  • Consequently, it is advisable to wait for a daily close above 104.32 before jumping onto bullish conclusions.
  • On the lower side, break below 103.72 (Friday’s low) would add credence to the gravestone Doji formation and signal a temporary top is in place at 104.87.

 


Gold – stuck at confluence of weekly 5-MA & weekly 200-MA

gold weekly forecast

  • Despite Gold’s bullish close on Tuesday above 200-DMA, caution is advised as the pair is having a tough time breaching the confluence of weekly 5-MA and weekly 200-MA noted around $1274 levels.
  • Also note that Weekly 5-MA is sloping downwards, hence area between the moving average and ressiatnce at $1290 could be dominated by sellers.
  • On the lower side, breach of support at $1260 would open doors for a revisit to $1241 (Oct 7 low).
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