Avatrade

Breaking News

Daily Financial Market Analysis 15.10.2018

1. Lets begin with the USD futures. As you can see on Friday and today it hit the Red resistance line and pulled back. My feeling is that the price is going to head lower down to the Pink or purple lines below. I'm going to post the next chart showing the possible formation of an inverse head and shoulders pattern that could be forming.

USD index Futures Graph
Add caption

























2. Here is the updated chart of the USD futures showing the possible formation of a very bullish inverse head and shoulders pattern. As you can see the left shoulder and head have formed and the right shoulder is in the process of forming. Ideally the price should come down to the purple line around 94.36 marking the low of the right shoulder. The neckline is in the 95.55 area and if this pattern does trigger then the measured move would be all the way to 97.55. We will continue to watch this since it could lead to a massive move higher in the USD

USD inderx futures graph
Add caption


























3. EUR/USD.....The Euro pulled back on Friday but is up strongly today as a result of the prior positive RSI divergence. It ran into the resistance at the red/green lines this morning but I think it is likely the price will move above this level and up to the 2nd highest red line at 1.1603. There is still a chance that the EUR/USD will move up to the highest red line in the 1.1655 area before a real reversal begins.

EUR/USD graph
Add caption

4. The GBP/USD is being held captive by the Brexit negotiations and thus as news is released could experience violent moves both up and down. On a positive note the GBP/USD has moved above the middle red line resistance and the upper red lines are the next target in the 1.3260 area. Use a trailing stop so if news does come out that takes the price down, you will be locking in your profits.
GBP/USD graph
Add caption



Sponsored by LegacyFX