MARKET FIX 25/10/2021

EURUSD Waiting for A Reversal

The expectation remains that we will see a bearish continuation with new structure lows below 1.150. However, as long as price remains above the weekly pivot @ 1.162 there is still a chance we will see the corrective move heading higher towards resistance somewhere between the monthly S1 pivot @ 1.168 and the daily 100 SMA @ 1.178. If this happens we will have a short setup with an excellent risk to reward ratio.

GBPUSD Bearish Continuation

Currently price is trading below the daily 100 SMA which along with the 200 SMA @ 1.384 is acting as a resistance zone. The expectation is that a move below the weekly pivot @ 1.176 should see a test of support @ 1.369 with a break lower setting up a short target of 1.349

EURGBP Base Building

So far the monthly S2 Pvot @ 0.842 has proven to be effective support and could be the base we were looking for. As long as price remains above the weekly pivot @ 0.844 there is a good chance for a move to test resistance @ 0.853

AUDUSD How Much Higher?

AUDUSD Ater breaking above the daily 100 SMA price have been looking for the next level of resistance which as it appears could be either the daily 200 SMA @ 0.755 or the monthly R2 pivot @ 0.759. If we see strong price reversal from either of these levels could see the bearish continuation playing out with targets all the way down to 0.721

USDCHF On Strong Support

Based on a top-down analysis the USDCHF trend looks to have turned bullish and the recent move lower appears to be a correction to test support. Currently price is trading right above the Daily 200 SMA and also a major diagonal trend line both of which should act as support. For traders looking to trade the reversal; a breakout above the weekly pivot @ 0.919 could see price head towards the last swing high @ 0.936

USDJPY Correction

After a breakout and a really strong bullish run, a correction would not be out of place at this stage. The obvious targets are the daily 21 EMA @ 113 followed by the 50% retracement level @ 111.9. It is also possible that we might still see another leg higher with resistance @ 114.7 (previous high) the most obvious target.

NASDAQ Keep An Eye On The Major Levels

With the NASDAQ it is really difficult to say what to expect but similar to last week it would be prudent to watch the major levels. Last week we mentioned that the monthly R1 @ 15385 was the level to watch and as it turned out this is exactly where price ended up going. This week keep an eye on the weekly R1 pivot for resistance @ 15540 and the yearly R1 pivot @ 15000 for support.

XAUUSD (Gold) Inverted Head and Shoulders

The inverted head and shoulders setup is still in play and a move to re-test resistance @ 1817 is the highest probability play for the week. The weekly pivot @ 1788 would act as support.

ETHUSD Inverted Head and Shoulder

As with Gold the inverted head and shoulders setup on ETH is also still in play with the target remaining @ 4600. Support levels are the weekly pivot @ 4050 followed by the monthly R1 pivot @ 3800