Weekly Technical Analysis For October 18th to 22nd 2021

What To Watch For Trading This Week 

EUR/USD: Last week, the US consumer price index increased 0.4% from August, according to Labor Department data released Wednesday. Compared with a year ago, the CPI rose 5.4%, matching the largest annual gain since 2008. Excluding the volatile food and energy components, so-called core inflation rose 0.2% from the prior month.

Minutes of the Fed September meeting confirmed last week that a tapering of stimulus is all but certain to start this year, although policymakers are sharply divided over inflation and what they should do about it.

Moreover, US Initial claims for state unemployment benefits dropped 36,000 to a seasonally adjusted 293,000 for the week ended Oct. 9. That was the lowest level since mid-March 2020.

In the upcoming week, US Housing Starts will be announced Tuesday and it is a critical indicator of economic strength in the US. The market expects housing starts to rise to 1.620 mln from 1.615 mln.

US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.680 mln in September.

The US Industrial Production for September will be also closely followed by traders. The data is estimated to see an outcome of 0.2%, on monthly basis.

The EURUSD pair moved up above the 1.1589 main support level. As long as the pair stays above 1.1589, on a four-hourly basis, we will follow 1.1659 as the resistance level. On the downside, if the price drops below 1.1589, the next support level will be at 1.1507.

Support: 1.1589 - 1.1507– 1.1421

Resistance: 1.1658– 1.1744 - 1.1819

GBP/USD: Pay attention to the 1.3784 daily resistance level in the GBPUSD pair. As long as the pair stays below 1.3784, on a daily basis, we will follow 1.3688 and 1.3599 as support levels. Otherwise, if the price rises above 1.3784, the next resistance level will be at 1.3883

Support: 1.3688 - 1.3599 - 1.3517

Resistance: 1.3784 - 1.3883 - 1.4005

EUR/JPY: The EURJPY pair moved up above the 132.07 main support level. As long as the price stays above 132.07 on a daily basis, the rise may continue, we will follow the key resistance level at 132.96. On the downside, if the pair drops below 132.07, the next major support level will be at 131.26.

Support: 132.07 - 131.26 - 130.23

Resistance: 132.96

GOLD: The GOLD price closed last week above the 1763 key support level. As long as the price stays above 1763, on a four-hourly basis, we will see the daily resistance level at 1785. On the downside, if the price breaks down below 1763, the next support level will be at 1745.

Support: 1763 - 1745 - 1736

Resistance: 1785 - 1805 - 1829

17 Oct 21 (Sun)

07:59 pm


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