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Technical Analysis
29 October 2020
Trading spotlight
Every day we analyse the market trends, select the most newsworthy asset, and prepare technical analysis on it—to help you reduce risks and get prepared.
- All
- USDCHF
- GBPJPY
USDCHF 3-dimensional review
What happened earlier
The USDCHF pair rose to the resistance level of 0.91246 before regressing to 0.90912. The U.S. dollar held onto previous gains due to an escalation of cases in Europe and new lockdowns impacting fragile economies. Traders are also preparing for continued volatility with the U.S. election less than a week away. Analysts are predicting that the record growth from the U.S. GDP report set to be released today, but it won't be enough to offset the losses caused by the pandemic.
What the picture is now
The RSI and the MACD indicate a possible downward correction while the Stochastic suggests an uptrend. The Bollinger Bands are giving off a bearish signal.
What the possible outcomes are
- In the most likely scenario, we may see a downwards correction to the first support level of 0.90912 before rebounding towards the first resistance level of 0.91246.
- If the pair manages to surpass the first resistance level, the next move will be towards the second resistance level of 0.91626.
- It's also possible the pair will challenge the first resistance level before dropping towards the first support level.
- If the pair falls below the first support level, expect a continued downtrend towards the second support level of 0.90598.
Pay attention to GBPJPY
What happened earlier
The GBPJPY pair fell to the support level of 135.018 before rebounding to 135.845. Bloomberg News reported that negotiations on the U.K. and EU trading deal are going well, enabling the pound to make a small jump. The U.K. and the EU have to complete a deal until the end of the year before the status quo transition ends.
What the picture is now
The RSI and the MACD indicate an uptrend while the Stochastic, which is in the overbought zone, suggests a possible downwards correction. The Bollinger Bands are providing a bullish signal.
What the possible outcomes are
- In our most likely scenario, GBPJPY may attempt to break the first resistance level of 135.845 before ultimately regressing towards the first support level of 135.018.
- If the pair surpasses the first resistance level, we can expect the next move to be towards the second resistance level of 137.319.
- Conversely, it's possible to see the pair fail to break the first resistance level and regress towards the first support level.
- If the pair falls below the first support level, expect a continued downtrend towards the second support level of 134.364.
Please note! This is not a direct instruction on which order to open. When applying this information, you remain solely responsible for the decision you make and financial risks you take.