USDJPY Technical Analysis

The USDJPY pair succeeded to achieve our waited target at 151.3 and approached 152 barrier, but it declined sharply to achieve bearish correction that stopped at 145.45, to rebound bullishly and start covering the losses that it suffered in the previous sessions, at it returns to the main bullish channel to support the continuation of the overall positive scenario.

Therefore, we expect to witness positive trades in the upcoming sessions supported by the positive signal provided by stochastic now, noting that breaking 148.10 followed by 147.15 levels will stop the expected rise and press on the price to achieve additional bearish correction.

The expected trading range for today is between 148 support and 150 resistances. The expected trend for today: Bullish.

S&P 500 - The US stock market is trying to recover

At the moment, major market participants are publishing corporate financial statements, which are not as positive as experts expected. According to the analytical agency Refinitiv, the profit of 88 companies that reported for the past quarter decreased by an average of 2.6%. The biggest loser on Friday was stocks of Snap Inc., owner of the Snapchat, which shed more than 30.0% amid historically low revenue growth of 6.0% year-on-year. The focus of increased attention of investors is also Twitter Inc., in which the administration of the President of the United States showed interest in terms of initiating possible checks. Telecom operator Verizon Inc., which reported a 24.0% drop in third-quarter net income, is also trading below the market.

The index quotes continued the local corrective trend, forming a Head and Shoulders reversal pattern. Technical indicators keep the sell signal, which has noticeably weakened recently: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars being in the sale zone.

Support levels: 3665, 3495 | Resistance levels: 3810, 3980

EURUSD - A fall is possible.

On the daily chart, the fifth downward wave of the higher level (5) of А forms, within which the wave 5 of (5) forms. Now, the fifth wave of the lower level v of 5 of (5) is developing, within which the wave (i) of v of 5 has formed and a local correction is ending as the wave (ii) of v of 5.

If the assumption is correct, the EURUSD pair will fall to the area of 0.947 – 0.93. In this scenario, critical stop loss level is 0.9997.

GBPUSD - A fall is possible.

On the daily chart, the downward fifth wave of the higher level V of (V) develops, within which the wave (5) of V forms. Now, the third wave of the lower level 3 of (5) has formed, a local correction has ended as the fourth wave 4 of (5), and the development of the wave 5 of (5) has started, within which the wave iii of 5 is forming.

If the assumption is correct, the pair GBPUSD will fall to the area of 1.02 – 1. In this scenario, critical stop loss level is 1.1501.

FTSE 100 - Results of the elections in the UK pushed the index up

The day before, Rishi Sunak was appointed the new Prime Minister and head of the Conservative Party with 178 of the 355 members of the Conservative faction in the House of Commons having voted for him. The official managed the British economy during the coronavirus pandemic and analysts believe that he is able to lead the country out of the current crisis. Probably, this news has already been taken into account by the market, since even the negative effect of the publication of a report on business activity, which showed a decrease from 48.4 points to 45.8 points in the Manufacturing sector and from 50 points, to 47.5 points in the Services sector could not put pressure on the dynamics of the pound.

Quotes of the index continue to try to start corrective growth. Technical indicators are holding a sell signal, which has noticeably weakened recently.

Support levels: 6920, 6710 | Resistance levels: 7090, 7270

USDCHF begins with bearish gap

The USDCHF pair opened today’s trading with bearish gap that puts the price under the key support 0.9990, but it begins to cover this gap and attempts to return to the bullish channel again, to keep the chances valid to continue the expected main bullish trend for the upcoming period, which targets 1.0100 followed by 1.0170 levels mainly. Breaching 1 barrier will reinforce the positive overview, while consolidating below 0.999 will put the price under new correctional bearish pressure on the intraday basis.

The expected trading range for today is between 0.9940 support and 1.008 resistance. The expected trend for today: Bullish.

AUDUSD Hits the First Target

The AUDUSD pair managed to touch our first target at 0.6270 and bounced bullishly from there, affected by stochastic positivity, waiting to resume the main bearish wave that its next main target at 0.6170. Holding below 0.6397 represents major condition to continue the expected decline, as breaching it will lead the price to achieve additional bullish correction that its next target might reach 0.6540.

The expected trading range for today is between 0.6250 support and 0.6380 resistance. The expected trend for today: Bearish.

USDCHF - Growth is possible.

On the daily chart, the first upward wave of the higher level (1) of 3 develops, within which the wave 5 of (1) forms. Now, the third wave of the lower level iii of 5 is developing, within which a local correction is developing as the wave (iv) of iii.

If the assumption is correct, the USDCHF pair will grow to the area of 1.02 – 1.03. In this scenario, critical stop loss level is 0.9908.

Crude Oil - US inventory growth puts pressure on oil quotes

The long-term trend is downward. The key resistance level is located at 93.5, and the key support is around 76.50. Last week, buyers unsuccessfully tried to break out the 86.5 mark, therefore, we can assume a decline in prices to the nearest support level of 81.

The mid-term trend remains upward. Last week, market participants tried to break the key trend support in the area of 86.21–85.46. The trading week closed inside the range, which indicates the retention of support. The trend target is the October maximum in the area of target zone 2 (94.27–93.43). Consequently, it will be possible to consider oil purchases when the first signs of an upward movement appear from approximately the current levels.

Resistance levels: 86.5, 89.5, 93.5 | Support levels: 81, 76.5

XRPUSD - Technical analysis

The uncertainty of the movement of quotations is associated with the approaching timing of the court decision on the suit of the Securities and Exchange Commission (SEC) against Ripple, as well as the departure of one of its leading specialists, Nik Bougalis, who was previously involved in the software of the XRP Ledger payment system. To continue the decline, the quotes will have to consolidate below 0.4330 (Fibonacci correction 23.6%). In this case, the decline will continue to 0.3906 (Murrey [0/8]) and 0.3570. The zone 0.4883–0.4780 (Murrey [2/8], the middle line of Bollinger Bands) seems to be the key “bullish” region, the breakdown of which will lead to the price exiting the long-term downward channel and give the prospect of further growth to 0.5219 (Fibonacci correction 38.2%) and 0.5371 (Murrey [3/8]).

Resistance levels: 0.4883, 0.5219, 0.5371 | Support levels: 0.4330, 0.3906, 0.357

USDCAD - Bank of Canada decides to keep the rate hike pace

Yesterday, the regulator decided to raise the interest rate by 50.0 basis points, not by 75 points, as most experts predicted, bringing it to 3.75% from 3.25% earlier. In an accompanying statement, officials noted that they expect the country's gross domestic product (GDP) to seriously slowdown from 3.25% to less than 1.00% by early 2023 due to inflation, which, although it fell from 8.1% in the last quarter to 6.9% the basis of this weakening was fuel prices, which fell on the world market. Core inflation, a more accurate indicator of consumer prices, has not eased, and the Bank of Canada expects negative dynamics only in the second half of 2023.

On the daily chart of the asset, the price is trying to consolidate in a downward corrective trend.

Resistance levels: 1.3610, 1.387 | Support levels: 1.3500, 1.325

NZDUSD - The pair may grow.

On the daily chart, the upward wave of the higher level (А) formed, and a downward correction ended as the wave (B), within which the wave C of (B) formed. Now, the development of the wave (C) has started, and the entry first wave of the lower level i of 1 of (C) has formed.

If the assumption is correct, the NZDUSD pair will grow to the area of 0.6166 – 0.6465. In this scenario, critical stop loss level is 0.5520.