Daily Technical Analysis. Tuesday, October 30
The Euro returned to a new low during the Asian trading session on Tuesday, following yesterday’s rally thanks to Dollar decline. The Dollar weakened as a result of least than expected US Inflation Data, which is still far fetched from the target of the Federal Reserve.
The return of selling pressures on the movement of the EURUSD pair will strengthen the previous bearish trend. A break below the support levels near 1.1615 will consolidate the declines and would cause a test to 1.1570 levels. A return of prices above the resistance level at 1.1660 would o the other hand, temporarily ease selling pressure.
Technical reading of the GBPUSD pair shows that prices are still moving within the framework of a positive correction to the general bearish trend.
Resistance levels at 1.3215 and 1.3225 are still considered to be the most important short-term levels. These levels are likely to welcome the Bears back to the market, while a short-term trend reversal will negatively impact price action.
The USDJPY pair saw a rally after the BoJ meeting this morning as the Bank of Japan (BoJ) kept Interest Rates steady at 0.10% and also kept Stimulus Program unchanged to match market expectations pushing the Yen lower.
Technically, despite the recent declines witnessed by the pair, prices still have to break stability below the support levels at 113.05 and 112.95 in order to confirm the continuation of the decline. However, a break through the resistance levels close at 113.20 would affect the recent bearish trend and cause the market to proceed on a sideways movement.
Gold prices fell on Tuesday after China reported a decline in the performance of the Industrial Sector and Services. Gold prices had edged higher yesterday at the expense of the US Dollar decline following the weak US Inflation Data.
Technical reading of the safe haven metal shows that the market is attempting to absorb the recent selling pressures. With no clear signals of a change to the overall bearish trend, the pair has had a break through the 1277 resistance levels. This break may allow the market to correct higher and possibly advance to the second resistance level at 1283. On the other hand, a break at the support level of 1272 would invite the Bears back into the market.