Technical Analysis – Before The Opening Bell October 3

Daily Technical Analysis. Tuesday, October 3

EURUSD
The Euro continued to fall against the Dollar on Tuesday to a seven-week low, as the US Manufacturing Data came in strong, and the European markets on the other hand, await European Central Bank President Mario Draghi later this week.
Technical reading indicates that the pair is moving within a bearish path and the bears are in full control of the price movement, which is expected to continue to fall until the 1.1661 levels.

GBPUSD
GBPUSD fell during the US Session Monday, to see its seventh session decline from its highest levels, on the heels of the UK Economic Data which came in least than expected.

The major pair further declined and managed to break the 1.3295 level. Technical reading is negative for the pair and indicates a clear control of the bears. The price is expected to continue on the decline path until the 1.3160 levels.

USDJPY
The US Dollar continued to rise against the Japanese Yen, supported by better-than-expected US Data released yesterday from the world’s largest economy.

The pair’s success in breaching near resistance levels at 113.19 will boost optimism and push the price test to 113.47 levels. The return of prices below the 112.70 support level would temporarily alleviate the current bias.

GOLD/ XAUUSD
Gold prices fell on Tuesday to a seven-week low as demand for safe haven in financial markets plummeted after rising yields on US Government Bonds. According to the chart, we notice that the prices are moving on a downtrend and there is clear control of the bears. We may also see further declines and perhaps even price targets at 1263.

WTI CRUDE
WTI Crude prices fell during the Asian Session on Tuesday for the second session in a row, as the negative correction continued after the sharp rise in the third quarter. The strength of the Dollar also helped impose negative pressure on commodity prices.

Despite these declines, prices still have to break and hold below the support levels at 50.07 and 49.68 to confirm the continuation of the decline. Breaking the resistance levels at 50.60 would affect the recent bearish trend and cause the market to proceed on a sideways movement.