News & Research

Market Research & Info

Market Research & Info

Land-FX analyst Shadi Abdo

  • Member of The Egyptian Society of Technical Analyst
  • Head of Education department, Market Strategist, Chief Technical Analyst of Global Leading Forex Brokerage companies
  • Trained over 5000 professional trainers more than 10 years
  • BSc in Economics from Mansoura University

01 November 2018

powered by Land-FX

BOE decision: Thursday, 12:00, press conference at 12:30. This is a more important rate decision by the Bank of England and it has been dubbed “Super Thursday.” The Bank not only publishes its rate decision and the meeting minutes from the event but also makes public its Quarterly Inflation Report (QIR) with an accompanying press conference by Governor Mark Carney and some of his colleagues. The BOE is set to leave its policy unchanged: the interest rate at 0.75% (raised to this level in August) and the QE program at 435 billion pounds. The Monetary Policy Committee (MPC) voted unanimously to maintain this policy in the previous meeting and the same voting pattern will probably be repeated. Any change in this will likely trigger an immediate reaction. The QIR includes new inflation and growth projections, known as “fan charts.” Given the uncertainty surrounding Brexit negotiations, forecasts could go anywhere. Recent data was mixed with inflation slowing down to 2.4% while wages advanced to 2.7% y/y. Retail sales fell short of expectations. Governor Carney will likely be asked many questions about Brexit but he will probably dodge political ones. The BOE plans to raise interest rates very gradually, with a maximum of two hikes in 2019 now on the cards, one being more likely. A hard Brexit could result in a rate cut, but the BOE’s base case scenario is for a smooth transition.

ISM Manufacturing PMI: Thursday, 14:00. The manufacturing sector continues enjoying robust growth according to this forward-looking survey. The score of 59.8 points beat expectations back in September. The topline number serves as a last-moment hint for the Fed while the Prices component is a measure of inflation expectations eyed by the Fed. The component dropped to 66.9 points in September, off the highs but still at a substantial clip. We will now get fresh figures for October. A small rise slide to 59 points is projected for October.

USD
ISM Manufacturing PMI

GBP
BOE decision

  • EURUSD

 

Update: The pair started going up as expected. The daily chart shows that the pair is about to reach a strong support level that could be found at 1.1315. In case the pair shows up some bullish evidence above this level, we can go long targeting the level of 1.15 during the week. This is conditioned by the continuation of trading above the level of 1.1315.

 

Resistance levels: Support levels: Recommended:
 1.21
1.1850
▪ 1.18
▪ -
 1.13
 1.1250

We are bullish as long as the pair is traded above the level of 1.1315.

  • GBPUSD

 

Update: The pair started going up as expected. As could be seen on the daily chart that the pair is about to reach a strong support level that is 1.2679 so we believe that in case the pair shows up some bullish evidence above this level, we can go long targeting the level of 1.2800 during the week. This is conditioned by the continuation of trading above the level of 1.2679.

 

Resistance levels: Support levels: Recommended:
▪ 1.36
 1.3350
▪ 1.29
 1.2679
 1.2650
 1.2550

We are bullish as long as the pair is traded above the level of 1.2679.

  • GOLD

 

Update: No daily close below the level of 1218 so out target was hit. As could be seen on the 4-hour-chart that the pair is traded above a strong support level that is 1218 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1230 during the week. This is conditioned by the continuation of trading above the level of 1218.

 

Resistance levels: Support levels: Recommended:
 1330
 1235
 -
 
 1180
 1170

We are bullish as long as the pair is traded above the level of 1218

  • AUDUSD

 

Update: The pair went up too much that it broke the downtrend line. No bearish evidence showed up. daily chart shows that the pair is traded below a strong resistance level that is the down trend line shown on the chart in blue. We will be waiting for the pair to reach the down trendline and in case it shows up some bearish evidence, we can go short targeting the level of 0.70 during the week.

 

Resistance levels: Support levels: Recommended:

▪ 0.7550
0.7600
▪ 0.
7260

▪ 0.7000
-
▪ -

Waiting for the pair to reach the downtrend line.

  • GBPJPY

 

Update: Our target was hit as expected. The daily timeframe shows that there is a potential that the pair could be forming a head and shoulders pattern. If this is true, then we expect that the pair might continue going up to reach the level of 145 during the week which is conditioned by the continuation of trading above the level of 142.59.

 

Resistance levels: Support levels: Recommended:
156
 155
 149

 --
143.73
 140

We are bullish as long as the pair is traded above the level of 142.59.

 

Disclaimer: The information contained in this publication is produced by Land-FX and not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Land-FX current judgment and may change without notice. This message is for information purposes only and is not intended as an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. No representation or warranty is made that this information is complete or accurate. Any views or opinions expressed do not necessarily represent that Land-FX. This email and the information it contains may be confidential, proprietary or legally privileged. You must not, directly or indirectly, use, disclose, distribute, copy or store this message or any part of it if you are not the intended recipient. Unless otherwise stated, any pricing information given in this email is indicative only, is subject to changes and does not constitute an offer to deal at any price quoted.