Forex trading! S: support.adamantfinance M: info@adamantfinace.com Registration
Analytics Technical analysis

Technical Outlook October 19, 2016

19 October 2016
EURUSD

19_10_2016_eur.jpg

The currency pair was in a downtrend yesterday before the US CPI m/m data. However, right after the release of this data, EUR/USD stopped to decline. US CPI met the forecasts and the Core data was worse than expected. Fed pays more attention to the Core CPI. It is the main reason why market participants stopped to buy USD when they have seen the results of the release. We advise to pay attention to today’s US Building Permits data, which may have some impact on USD. There is a probability that this statistics accompanied by yesterday’s weaker than expected Core CPI data is going to exert pressure on USD.

There is no trend on the Weekly chart as the price is close to the MA55 balance line. The currency pair moved downwards last week. We expect EUR/USD to have an upside correction in the next couple of days.

There is no trend on the Hourly chart as the MA-channel is horizontal and the price is close to the MA55 balance line. We expect the tendency to change in the nearest future.



GBPUSD

19_10_2016_gbp.jpg

The currency pair finally changed its tendency after yesterday’s UK CPI y/y data. Analysts expected CPI growth to increase to 0,9%. However, final result was even better at 1,0% level. The faster inflation growth is the less chances of further monetary easing by the Bank of England are. In addition Mark Carney, Head of the Bank of England expressed his worries about the faster than expected devaluation of the British Pound.

There is the downtrend on the Weekly chart as the price is below the MA55 balance line. The currency pair declined last week. We expect the same tendency to continue this week. However, the latest UK CPI data may change the situation.

There is the uptrend on the Hourly chart as the MA-channel goes upwards and the price is above the MA55 balance line. We advise to open long trades from 1,22300-500 area.



AUDUSD

19_10_2016_aud.jpg

Investors were cautious yesterday and the currency pair was trading without sharp moves. We expect that AUD/USD is going to continue its growth and there will be no fake breakthrough on the Weekly chart. There are some opportunities to open trades today as the price is getting closer to the MA55 balance line. You may try long trades from the trendline on the Hourly chart.

There is the uptrend on the Weekly chart as the price is above the MA55 balance line. There is no sharp decline of the currency pair. The downside scenario with target at 0,71800 may be cancelled.

The uptrend is in progress on the Hourly chart as the MA-channel goes upwards and the price is above the MA55 balance line. We advise to open long trades from the trendline or from the MA55.



USDCHF

19_10_2016_chf.jpg

The currency pair continues to trade in flat. The downside tendency that we had seen last week had no sequel. USD/CHF is still unsuitable for trading. It is better to avoid trading as there is no clear trend.

There is no trend on the Weekly chart as the price is fluctuating around the MA55 balance line. The currency pair had some growth last week according to our expectations. We expect the currency pair to be trading with no direction this week.

There is no clear trend on the Hourly chart as the MA-channel is horizontal and the price is close to the MA55 balance line. We advise to take no decision at the moment as the situation is still unclear.

Back to analytics