Tuesday 5th October 2021: Technical Outlook and Review

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DXY:

On the H4 timeframe, prices have recently tested our 1st support at 93.731 in line with the bullish trendline, 50% Fibonacci Retracement and have experienced a bounce. We see a potential of prices climbing higher from 1st support towards our intermediate resistance at 94.192 in line with 61.8% Fibonacci retracement and 1st resistance at 94.506 which is a graphical swing high. Technical indicators are showing bullish momentum. Alternatively, prices may dip further towards our 2nd support at 93.435 in line with 38.2% and 61.8% Fibonacci retracement.

Areas of consideration:

  • H4 time frame, intermediate resistance at 94.192
  • H4 time frame, 2nd support of 93.435

XAU/USD (GOLD):

On the H4 chart, price has recently experienced a breakout from our bearish trendline is climbing towards our 1st resistance at 1776.61 which is in confluence with 50%, 61.8%, 127.2% Fibonacci retracement and 127.2% Fibonacci extension. As prices have broken through the bearish ichimoku clouds. We see a slight possibility of prices retesting our bearish trendline before climbing further. Divergence is spotted in Stochastics, further supporting our bullish bias. Alternatively, prices may dip further along our bearish trendline to our 1st support at 1743.84 which is strong graphical overlap.

Areas of consideration:

  • 4h 1st support at 1743.84
  • 4h 1st resistance at 1776.61

EUR/USD:

On the H4 timeframe, price has recently broken our 1st resistance at 1.16047 which is a key daily resistance but failed to test our intermediate resistance in line with 23.6% Fibonacci retracement. We foresee a continuation of the bearish trend with price testing our 1st support at 1.15631 again which is a graphical swing low. Technical indicators are showing bearish momentum.

Areas of consideration:

  • 1st Resistance level at 1.16163
  • 1st support level at 1.15631

USD/CHF:

On the H4, price is seen to be reacting in between 1st Resistance 0.93295 and 1st Support 0.92287 and holding above the ascending trendline support. Price have bounced off the 1st Support, we can expect a bullish momentum towards the 1st Resistance in line with 61.8%  Fibonacci retracement and 61.8% Fibonacci Projection. Our bullish bias is further supported by the stochastic indicator where the %K line bounced off the support line.

Areas of consideration:

  • Watch 1st Resistance at 0.93295

GBP/USD:

On the H4 chart, price has recently bounced to test our 1st resistance at 1.36088 in line with 38.2% Fibonacci retracement, bearish trendline and ichimoku cloud resistance. We foresee a potential reversal towards our 1st support at 1.35519 in line with graphical overlap and ichimoku cloud support before price dips further. Technical indicators are showing bearish momentum.

Areas of consideration:

  • 1st Resistance at 1.36088
  • 1st Support at at 1.35519

USD/JPY

On the H4 timeframe, price has just approached the 1st Support level and hence we can expect a short -term bullish trend. We can expect the price to reach the 1st Resistance level in line with daily resistance. Our short-term bullish bias is further supported by the stochastic indicator where the %K line touched the support level awaiting for a bounce and the Ichimoku indicator where we can see there is strong support from the cloud.

 

Areas of consideration:

  • H4 time frame, 1st support of 110.800

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 towards the intermediate support then the 1st Support in line with previous swing low. Our bearish bias is further supported by the stochastic indicator where the %K line touched the resistance level and dropped from that level.

Areas of consideration:

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

NZD/USD:

On the H4 timeframe, price has recently bounced off our 1st resistance at 0.69831 in line with 50%, 38.2% and 100% Fibonacci retracement and can potentially be dipping towards our 1st support which is a graphical swing low. Technical indicators are showing bearish momentum. Alternatively, breaking our 1st support could find prices dipping even further towards our 2nd support.

Areas of consideration:

  • H4 time frame, 1st resistance at 69834
  • H4 time frame, 1st support at 0.68595

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 retest at 1st support has happened and price is likely heading for 1st resistance  at 1.26437 which is in line with the 38.2% Fibonacci retracement If price breaks first resistance, we will see prive heading for second resistance at 1.26951 in line with the 61.8% Fibonacci retracement.  Otherwise, breaking below 1st support, we will see price drop towards 2nd support at 1.25442.

Areas of consideration:

  • H4 time frame, support at 1.25776

OIL:

On the H4 timeframe, price is still trading above the moving average which is indicating further bullish movement. Supported by the fact that price is above the ichimoku indicator, we are expecting that price bounces off 1st resistance at 82.12 back to 1st support at 79.36. Otherwise, breaking 1st resistance, we will see price head towards 2nd resistance at 85.77.

Areas of consideration:

  • H4 time frame, 1st resistance of 82.12
  • H4 time frame, 1st support of 79.36

Dow Jones Industrial Average:

On the H4, we may expect to see a short term bullish move to 1st resistance at 34695 with recent price closing above the moving average. If price breaks 1st resistance, we may see further bullish moves to second resistance at 35060 as a potential upside target. Otherwise, breaking 1st support at 33890, will see price rise towards 2nd resistance at 35615.

Areas of consideration:

  • 4H resistance at 34695
  • 4H support at 33890

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