Welcome to the new weekly forecast for the trading week beginning on October 28th. With the US election approaching and recent geopolitical tensions, this week promises to be action-packed.
Let's dive into the charts and see how these elements will influence the market, starting with the Dollar Index and other key Forex instruments.
Dollar Index (DX1)
As you observe the Dollar Index, you'll notice it's caught in a tug-of-war between buyers and sellers. Despite showing a bearish divergence, it has remained range-bound. A closer look at the three-monthly chart analysis reveals a potential for a downward correction due to the exhausted bullish momentum at key resistance levels.
CADJPY
You'll see that the CADJPY has made a strong recovery from the 61.8% Fibonacci retracement and is now targeting the 23% retracement zone. With the Bank of Japan's interest rate announcement on the horizon, prepare for increased volatility. This could lead to further upside for the pair, aiming for higher Fibonacci extension levels.
EURUSD
As the Dollar Index potentially climbs, you may find that the EURUSD faces downward pressure due to their inverse relationship. Technical indicators suggest the pair could drop to lower Fibonacci extension levels before finding support. Stay cautious and keep an eye out for possible short-term buying opportunities following deeper corrections.
GBPAUD
The GBPAUD looks bullish as it continues to respect a rising trendline, pushing towards significant psychological levels. You'll notice the ongoing bullish momentum is supported by strong technicals, with no signs of reversal in sight. This could be an excellent opportunity for you if you're looking for upward trends.
XAUUSD (Gold)
Gold remains a strong buy amid geopolitical tensions and market uncertainties. You'll see it holding well above key support levels, poised to test higher resistance points. The bullish scenario is well supported by both fundamental factors and technical patterns, offering a robust outlook for your investment strategy.
This week presents significant trading opportunities across multiple instruments for you.
Stay updated and use the provided insights to refine your strategies.
As always, manage your risks wisely.
Happy trading…let's catch those market moves together!
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