*EURUSD*
Yesterday, EUR/USD depreciated dramatically to 20-year low level of 0.9550. Since ultra-hawkish FED and energy crisis keeps sellers hold, the parity continues to weaken. On the other hand, ECB's Lagarde made hawkish comments gave some support to the parity for a while before US session. Also, the news flow from Bloomberg that EU plan to delay enforcing a price cap on Russian oil imports stopped the losses.Technically, downward pressure is still on the agenda. The break of 0.9550 level gives a way to the next 0.9465-70 area before 0.9340. On the upside, the resistance level is around 0.9710. More upside, it may be followed 0.9800 level.
Support: 0.9625 - 0.9550 - 0.9490
Resistance: 0.9710 – 0.9800 – 0.9875
*GBPUSD*
GBP/USD touched the historical low level of 1.0330 and now is seen around 1.0800. The BOE was under pressure, but BoE’s Bailey repeated they would not hesitate to alter interest rates as necessary to return inflation to the 2% target sustainably in the medium term. In the market, 3Month risk reversals against the pound are near the most bearish since 2016 (Now: -3.64, 2016:-4.50). Also, Overnight index Swaps (OIS) now implies an expectation of a 150bps hike by 3 November meeting. Yet, markets are still hoping for an emergency hike that could help steady the GBP and mitigate imported inflation.
Technically, the pound is oversold condition as daily RSI14 indicator. Resistance is seen around 1.0840. More upside, the parity may lift to 1.0970 level. On the downside, the support is at 1.0630 and then at 1.0525.
Support: 1.0630 – 1.0525 – 1.0330
Resistance: 1.0840 – 1.0970 – 1.1130
*XAUUSD*
The FED will have to hike further to stamp out inflation, and policy will need to stay restrictive for longer to fight inflation expectations, Loretta Mester said yesterday. According to her, inflation is the FED’s number one priority. Thus, the more hawkish expressions lifted the real rates up to 161bps.
From a technical perspective, the year-to-date low 1620 seems like a support level. More downside, the support will be 1610-1600 region. On the upside, 1647 may follow as the first resistance. Any move upwards is more likely to expose resistance near a one-week-old trading range 1654/1656 area.
Support: 1628 – 1620 – 1611
Resistance: 1647 – 1656 – 1672
* UKOIL*
Central Banks’ guidance, global economic growth expectations decrease. Thus, brent oil prices are expected to fall more.
Technically, 50-Daily Moving Average (DMA) is crossed the 200DMA. Below 97.00 level, Brent remains under selling pressure. The expected trading range for today is between 82.90 support and 87.40 resistance.
Support: 83.65 – 82.90 – 79.30
Resistance: 87.40 – 89.70 – 92.80
Yesterday, EUR/USD depreciated dramatically to 20-year low level of 0.9550. Since ultra-hawkish FED and energy crisis keeps sellers hold, the parity continues to weaken. On the other hand, ECB's Lagarde made hawkish comments gave some support to the parity for a while before US session. Also, the news flow from Bloomberg that EU plan to delay enforcing a price cap on Russian oil imports stopped the losses.Technically, downward pressure is still on the agenda. The break of 0.9550 level gives a way to the next 0.9465-70 area before 0.9340. On the upside, the resistance level is around 0.9710. More upside, it may be followed 0.9800 level.
Support: 0.9625 - 0.9550 - 0.9490
Resistance: 0.9710 – 0.9800 – 0.9875
*GBPUSD*
GBP/USD touched the historical low level of 1.0330 and now is seen around 1.0800. The BOE was under pressure, but BoE’s Bailey repeated they would not hesitate to alter interest rates as necessary to return inflation to the 2% target sustainably in the medium term. In the market, 3Month risk reversals against the pound are near the most bearish since 2016 (Now: -3.64, 2016:-4.50). Also, Overnight index Swaps (OIS) now implies an expectation of a 150bps hike by 3 November meeting. Yet, markets are still hoping for an emergency hike that could help steady the GBP and mitigate imported inflation.
Technically, the pound is oversold condition as daily RSI14 indicator. Resistance is seen around 1.0840. More upside, the parity may lift to 1.0970 level. On the downside, the support is at 1.0630 and then at 1.0525.
Support: 1.0630 – 1.0525 – 1.0330
Resistance: 1.0840 – 1.0970 – 1.1130
*XAUUSD*
The FED will have to hike further to stamp out inflation, and policy will need to stay restrictive for longer to fight inflation expectations, Loretta Mester said yesterday. According to her, inflation is the FED’s number one priority. Thus, the more hawkish expressions lifted the real rates up to 161bps.
From a technical perspective, the year-to-date low 1620 seems like a support level. More downside, the support will be 1610-1600 region. On the upside, 1647 may follow as the first resistance. Any move upwards is more likely to expose resistance near a one-week-old trading range 1654/1656 area.
Support: 1628 – 1620 – 1611
Resistance: 1647 – 1656 – 1672
* UKOIL*
Central Banks’ guidance, global economic growth expectations decrease. Thus, brent oil prices are expected to fall more.
Technically, 50-Daily Moving Average (DMA) is crossed the 200DMA. Below 97.00 level, Brent remains under selling pressure. The expected trading range for today is between 82.90 support and 87.40 resistance.
Support: 83.65 – 82.90 – 79.30
Resistance: 87.40 – 89.70 – 92.80