Daily Forex forecast analysis 10-23-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
Forex Forecast Analysis 10-23-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The Catalonia government had been dismissed and now the market awaits new elections to be announced in the following 6 months. The euro gapped a little lower from the Friday close, but until now we have not seen impulsive selling, from the contrary, it seems like the buyers managed to balance the order flow and a rebound higher could take place. Looking ahead, other key events will follow this week, with the ECB meeting being the most important one.
From a technical point of view, the price action responded decently around the 1.1767 support area and after a brief break below it, the bull resumed. 1.1796 and the 20 EMA are expected to act as resistance next, while if they fail, 1.1820 will follow.
On the downside, if selling pressure will resume, 1.1736 and 1.1719 should be price levels which sellers will have a hard time to break.
- From EU, Consumer Confidence will be released at 02:00pm GMT.
- From US, Chicago Fed National Activity Index will come out at 00:30pm GMT.
The price action ended last week little above the 0.9835 resistance and weekly high, which shows that bullish momentum had been at high points, following the revived optimism around the US President new fiscal plan. However, we can see some profit taking right now since the price is retracing lower towards the previous weekly high and if a breakout below it will take place, that will suggests a short-term weakness of the bullish trend will follow.
If the sellers manage to drive the price below the 0.9835 again, then we expect the price action to advance towards the 20 EMA and 0.9784. A short-term ascending trend-line will follow then and as you can see, it managed to cap the downside several times.
On the upside, we will need revived buying optimism to resume in order to push the price higher. 0.9854 and 0.9891 will potentially act as resistance and further cap the upside, if that will be the case.
Cable had been trending higher in late Friday and the price action managed to close above the 4h chart 20 EMA last week. We already see the buyers resuming after a brief stop, which communicates that the US dollar could be under pressure in the short-term and we could expect stronger bullish gains in the following days. If the price action will extend higher above the EMA, that will confirm our theory.
If that will be the case, the buyers will first need to overcome the 1.3199-1.3220 key resistance area, where sellers acted decently last week. If buyers will push the price above it and hold the ground, further bullish gains will follow towards 1.3287.
On the downside, strong selling activity should first drive the price below the 20 EMA and if that will materialize, further slides could follow towards 1.3134 and 1.3090, where the price action stalled at the end of last week.
- From UK, Industrial Trends Surveys- Orders will be published at 10:00am GMT.
The US dollar gapped higher against the yen at the start of the weak, following a convincing win of Japan Prime minister, Shinzo Abe. Given the fact that he managed to keep its majority, the market expects the ultra-easy monetary policy to be in place for an extended period of time, which added pressure on the yen short-term. Looking ahead, a retracement lower is not excluded, given the fact that the price action is approaching a strong key resistance area.
For the last few hours, we have seen the price action retreating lower and thus far it seems like a retest of 113.43 previous resistance and key role reversal level will follow. As a whole, we expect the price action to continue to be located above the EMA.
On the other hand, so far the price action encountered resistance around the 113.89 resistance level and it should manage to cap the upside. If a continuation above the current daily high will take place, 114.30 area should be the next target for bulls.
The Aussie ended last week below the 20 EMA, but we already see the bulls stepping in and moving the price higher, which confirms that area offers a good opportunity to buy short-term. We’ll see how the price action will develop, but as long as the price action will be capped by the 20 EMA that will communicate the sellers will continue to be in control, while if a strong break above will take place, buyers should manage to drive the price towards last week high.
So far, the price action seems to be heading towards 0.7834 resistance, which is backed by the 20 EMA, both forming an area where buyers should encounter heavy selling. If they will manage to overcome that zone, further gains towards 0.7875 could follow then.
On the other hand, if the price action will be capped by the EMA, renewed selling pressure could drive the price towards last week low and if that will be breached, further selling could follow towards 0.7792 support.