Weekly Technical Analysis For October 25th to 29th, 2021

All Eyes Will Be On ECB Rate Decision And US GDP Growth This Week

EUR/USD: Last week, U.S. Federal Reserve officials said while asset tapering should begin soon, it was too soon to hike interest rates. Fed Governor Randal Quarles said he favors an initial move to begin asset tapering in November 2021, but added that mounting inflationary pressures that could require a policy response were also a concern

Atlanta Fed President Raphael Bostic, said he expects high inflation to persist into 2022 and the U.S. central bank should raise interest rates by the end of 2022.

Additionally, the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October.

This week’s calendar features U.S. data on GDP growth, Pending Home Sales, Durable Good Orders, and PCE inflation. 

US GDP number will be published on Thursday. Economists predict that Q3 GDP growth is at 2.8% annualized.

Core Durable Goods Orders, excluding transportation, are expected to rise to 0.4% in September from 0.3% the previous month.

The US will publish updates on consumer spending and the Federal Reserve’s preferred inflation gauge on Friday, which will give fresh insight into the strength of the economy. 

The Core PCE price index is expected to rise by 0.2% in September . Year on year, economists forecast a 3.7% rise.

In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. 

In the ECB’s last meeting, policymakers deferred a decision on bond purchases to December, but since then euro area inflation has surged to a 13-year high amid supply bottlenecks and soaring energy prices.

Pay attention to the 1.1658 main resistance level in the EURUSD pair. As long as the pair trades below 1.1658, on a four-hourly basis, we will follow 1.1589 as the support level. On the upside, if the price rises above 1.1658, the next resistance level will be at 1.1744.

Support: 1.1589 - 1.1507 - 1.1421

Resistance : 1.1658 - 1.1744 - 1.1819

GBP/USD: Focus on 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

USD/CHF: Keep your eye on the 0.9186 main resistance level in the USDCHF pair. As long as the pair stays below 0.9186 on a four hourly basis, we will see support level at 0.9130. On the other hand, If the pair drops below 0.9164, the next resistance level will be at 0.9322

Support: 0.9130 - 0.9064 - 0.9002

Resistance: 0.9186 - 0.9322 - 0.9437

GOLD: The Gold Price moved up above the 1785 major support level. As long as the price stays above 1785 on a four-hourly basis, we will see the daily resistance level at 1805. On the downside, if the price breaks down below 1785, the next support level will be at 1763

Support: 1785 - 1763 - 1745

Resistance: 1805 - 1829 - 1854

24 Oct 21 (Sun)

07:56 pm

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