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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

06 November 2018

powered by Land-FX

Australian rate decision: Tuesday, 3:30. The Reserve Bank of Australia has not changed interest rates since mid-2016. It maintains the neutral stance but does express some concerns about global growth, the housing market, and other issues. On the other hand, the employment situation is OK. It will be interesting to see if the RBA changes its stance given the recent inflation data.

US Mid-Term Elections: Tuesday and Wednesday. Americans go to the polls to select all 435 members of the House, the lower chamber, and 36 out of 100 Senators. The elections are seen as a referendum on President Donald Trump. Current opinion polls give the opposition Democrats a good chance of flipping the House while Republicans are projected to retain the Senate. Markets have been happy with Trump’s tax cuts and de-regulation while they have been unhappy with the tariffs. A split government means that no significant legislation is likely to happen in the next two years. The If Republicans retain both chambers, the US Dollar will likely gain as further tax cuts can boost the economy and trigger further rate increases. In addition, Trump will feel emboldened to continue his trade wars, and the greenback enjoys safe-haven flows. A Democrat victory in the House will likely weigh on the greenback for the opposite reasons. There are slim chances for the Democrats winning the Senate. The results will be made public as voting closes in America’s states, starting from the East and going all the way to Hawaii. High volatility is expected in the Asian session early on Wednesday. The picture should become clear ahead of the European session.

New Zealand jobs report: Tuesday, 21:45. New Zealand publishes the employment data only once per quarter, thus every publication has an outsized impact on the currency. New Zealand enjoyed a low unemployment rate of 4.5% in Q2 while the total number of people in employment rose by 0.5%. The Labor Cost Index is also of interest. It increased by 0.6%. The figures for Q3 are likely to show ongoing expansion. Employment is projected to rise by 0.5% and the unemployment rate to fall to 4.4%.

USD
US Mid-Term Elections

AUD
Australian rate decision

NZD
New Zealand jobs report

  • EURUSD

 

As could be seen on the daily chart that the pair is traded above a strong support level that is 1.13 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.16 during the week. This is conditioned by the continuation of trading above the support level of 1.13.

 

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 1.1300.

  • GBPUSD

 

The daily chart shows that the pair is on its way to reach a strong resistance level that is 1.33 which is where we can go short. So, we will be waiting for the pair to reach that level, then in case it shows up some bearish evidence, we can go short targeting the level of 1.30 during the week.

 

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

Waiting for the pair to reach the level of 1.33.

  • GOLD

 

The 4hours timeframe shows that the pair has reach as strong resistance level that is 1240. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1220 during the week. This is conditioned by the continuation of trading below the resistance level of 1240. 

 

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

We are bearish as long as the pair is traded below the level of 1240.

  • AUDUSD

 

As could be seen on the daily chart that the pair managed to break the downtrend line shown on the chart in blue. So, we believe that as long as the pair is traded above the broken downtrend lone along with the support level of 0.7160, it is highly recommended to go long targeting the level of 0.73 during the week.

 

Resistance levels: Support levels: Recommended:

▪ 0.7550
0.7600
▪ 0.
7260

▪ 0.7000
-
▪ -

We are bullish as long as the pair is traded above the broken downtrend line.

  • GBPJPY

 

As could be seen on the daily timeframe that the pair is about to reach a strong resistance level that is 150 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 146 during the week. So, we will be waiting for the pair to reach the resistance level of (149.60 – 150) then if it shows up some bearish evidence, we can go short targeting the level of 146 during the week.

 

Resistance levels: Support levels: Recommended:
156
 155
 149

 --
143.73
 140

We are bearish as long as the pair is traded below the level of 150.

 

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