Oct 29, 2020

Here we have the chart analysis of the most traded currency pairs of today, October 29th.

Latest updates

  • Metrics of implied volatility in the $6.6 trillion per day forex market rose to a nearly 7-month high on Wednesday as traders expected more. more volatile than before the US election next week.
  • On the stock market, the VIX index - a measure of market fear - is being closely watched and kept below June's highs.
  • Germany's DIW Institute said: The German economy may grow about 6% in Q3 but recovery from the Covid-19 crisis is likely to slow down due to the second wave.
  • Hedge funds are said to have bought crude oil futures and options at the fastest pace in six months as portfolio managers are confident that OPEC+ will delay their expected production increase until the demand is stronger.

USD/JPY chart

chart analysis USDJPY

The price approached 104 as expected. There has also been a bullish signal at this price zone so we will do some risk reduction as planned (partially close the order or move the Stop Loss). We expect a bullish correction from this zone. We will only return to short orders at the upper resistances when there are clear signals or when the price completely breaks the 104 zone.

EUR/USD chart

chart analysis EURUSD

The price broke the 1.175 zone without generating a really noticeable bullish signal. Therefore, the buy orders have not been activated yet. However, this breakout hasn't changed our tactics yet because the bullish structure is still present. We only give up the buying strategy when the price always breaks down to 1.170. In short, if there is a bullish signal around 1.170, we might still consider buying. Also, it should be noted that there will be important news from ECB today.

GBP/USD chart

chart analysis GBPUSD

The price action on the GBP/USD chart is quite similar to the EUR/USD chart. Currently the key 1.30 stop has been broken so we will pause buy orders around the current price zone. However, the previous short-term bullish structure has not been invalidated yet, so we still give priority to buy orders. Remember, the buy pending zone will be reduced to the 1.285 zone.

USD/CAD chart

chart analysis USDCAD

Price did go up as expected but the 1.325 zone has failed and there is no sign of decline around this zone, leading to some important changes such as: the short-term bearish structure is invalidated and the double bottom pattern is completed. socks. Therefore, we need to change tactics and follow new signals. Buy pending will be around 1.325. Stay tuned for bullish signals here.

AUD/USD chart

chart analysis AUDUSD

What we are concerned about has not happened: the price still respects the mid-term bearish channel line and has produced extremely strong bearish signals. I hope you have promptly added positions besides the previous tentative positions. The bearish engulfing pattern on the daily chart is showing a very strong decline. We expect the 0.70 support to fail soon.