Thursday 7th October 2021: Technical Outlook and Review

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DXY:

On the H4 timeframe, prices have bounced our intermediate resistance at 94.506 in line with our graphical swing highs. We see a potential of prices dipping towards 1st support at 94.066 bullish trendline, 50% Fibonacci Retracement before any potential bounce. Technical indicators are showing bullish momentum. Breaking our 1st support and bullish trendline will find prices dipping further towards our 2nd support at 93.679 in line with 100% and 50% Fibonacci retracement.

Areas of consideration:

  • H4 time frame, 1st support at 94.066
  • H4 time frame, 1st resistance at 94.506

XAU/USD (GOLD):

On the H4 chart, prices appear to be consolidating in a triangle. XAUUSD have experienced a bounce from our 1st resistance at 1765.60 in line with 78.6% Fibonacci retracement and descending trendline, and is dipping towards our 1st support at 1749.84 in line with 61.8% Fibonacci retracement and ascending bullish trendline. However, as technical indicators are showing mixed signals, we prefer to remain neutral for now.

Areas of consideration:

  • 4h 1st support at 1749.84
  • 4h 1st resistance at 1765.6

EUR/USD:

On the H4 timeframe, price has recently broken our 1st resistance at 1.15621 which is a key daily resistance and is attempting to retest its first resistance. Price is also currently trading in a descending channel and can potentially dip down to its first support level which is in line with our 161.8% Fibonacci retracement level and is also our key daily support . Our indicator also support our bearish bias

Areas of consideration:

  • 1st Resistance level at 1.15621
  • 2nd Resistance at 1.16114
  • 1st support level at 1.5009

USD/CHF:

On the H4, price is seen to be reacting above the ascending trendline and price is right now in the middle of the 1st Resistance and 1st Support. We can expect price to bounce from the 1st Support in line with 78.6% Fibonacci Retracement or price could move up and drop from the 1st Resistance in line with 61.8% Fibonacci projection and 61.8% Fibonacci retracement.

Areas of consideration:

  • Watch 1st Support at 0.92373
  • Watch 1st Resistance at 0.93683

GBP/USD:

On the h4 chart , price has recently broken out from the descending trendline and is currently retesting the trendline. If price were to break the 50% Fibonacci retracement level and 78.6% Fibonacci projection level, it can potentially go up to its second resistance level of 1.37300 which is on the level of Fibonacci projection level of 100% and retracement level of 61.8%.

Alternatively, if price were to break its first support of 1.36126 it can potentially dip towards its 2nd support of 1.34855 . The Ichimoku cloud indicator shows that price is going to break out of the cloud and thus supporting our bullish momentum.

Areas of consideration:

  • 1st Resistance at 1.36593
  • 1st Support at at 1.35694

USD/JPY:

On the H4 timeframe, price is on an ascending trendline support, signifying a bullish momentum. We can expect the price to bounce up from the 1st Support level in line with 50% Fibonacci retracement towards the 1st Resistance in line with the resistance on the daily. Our short-term bullish bias is further supported by the price holding above Ichimoku cloud.

Areas of consideration:

  • H4 time frame, 1st support of 110.247
  • H4 time frame, 1st resistance of 112.125

AUD/USD:

On the H4, price is seen to be holding below the descending trendline resistance, signifying a bearish momentum.  Price is approaching the 1st resistance where price was not able to break previously, hence we can expect price to drop from 1st Resistance in line with 50% Fibonacci Retracement and 61.8% Fibonacci projection towards the intermediate support then the 1st Support in line with previous swing low. Our bearish bias is further supported by the RSI approaching the resistance level.

Areas of consideration:

  • H4 1st resistance level 0.73147
  • H4 1st support level 0.71703

NZD/USD:

On the H4 timeframe, price is on a bearish momentum. Price could retest our 1st support turned 1st resistance at 0.69330 in line with 50%, 38.2% Fibonacci retracement and bearish trendline. Thereafter, we see a possibility of prices dipping to our 1st support at 0.68752 which is a graphical swing low. Technical indicators are showing bearish momentum. Alternatively, a reversal through the ichimoku clouds might find prices testing our area of 2nd resistance at 0.698130 in line with 88% and 100% Fibonacci Retracement.

Areas of consideration:

  • H4 time frame, 1st resistance at 69330
  • H4 time frame, 1st support at 0.68752

USD/CAD:

On the H4, with stochastic testing resistance where price dropped in the past along with the current price’s respect of the trend line, a test at 1st support at 1.25677 in line with 78.6% Fibonacci retracement may happen. If price breaks 1st support, price is likely heading for 2nd support at 1.24938 which is a horizontal swing low.

 

Areas of consideration:

  • H4 time frame, support at 1.25677

OIL:

On the H4 timeframe, price is still trading above the ichimoku cloud which is indicating further bullish movement. we are expecting that price bounces off 1st support at 79.39 in line with the 61.8% Fibonacci retracement back to 1st resistance at 83.44. Otherwise, trading back above the resistance at 80.76, we will see price head towards 1nd resistance at 83.44 instead off bouncing off the 1st support.

Areas of consideration:

  • H4 time frame, 1st resistance of 83.44
  • H4 time frame, 1st support of 79.39

Dow Jones Industrial Average:

On the H4, we may expect to see a short term bullish move to 1st resistance at 34688 in line with the 78.6% Fibonacci retracement with recent price closing above the exponential moving average. If price breaks 1st resistance, we may see further bullish moves to second resistance at 35033 in line with the 100% Fibonacci projection as a potential upside target. Otherwise, breaking 1st support at 34438 in line with the 61.8% Fibonacci retracement, will see price fall towards 2nd support at 34113.

Areas of consideration:

  • 4H resistance at 34688
  • 4H support at 341113

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