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Technical Analysis: Intraday Forex Signals, October 31, 2023

Headlines That Matter Today:

  • Yen Weakens: The Japanese yen experienced a significant drop after the Bank of Japan announced a more flexible approach to yield control, disappointing those who expected a more aggressive change.

  • China Manufacturing Slump: Chinese stocks took a hit as the country's manufacturing PMI fell into contraction, signaling potential economic slowdown and impacting forex pairs like USD/CNY.

  • Dollar Gains: The U.S. dollar strengthened against most of its Group-of-10 peers, potentially offering favorable conditions for traders betting on the dollar.

  • Oil Price Fluctuation: West Texas Intermediate oil prices rebounded to near $83 per barrel after a previous steep drop, affected by geopolitical tensions in the Middle East and demand indicators.

  • European Uncertainty: European and US stock futures dipped, possibly affecting currency pairs like EUR/USD, amid tensions in the Middle East and weaker manufacturing data from China.


Intraday forex signals presented here are derived using the previous close's pivot point, complemented by RSI and Ichimoku Cloud indicators to define the trading signal range.


DXY/Dollar Index  Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
The Dollar Index gauges the U.S. dollar's value against a basket of foreign currencies.

Forex Signals


Gold, XAU/USD Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 XAU/USD (Gold) Technical Breakdown

Trading Pair: XAUUSD


Trade Direction: BULLISH (Based on the recent uptrend)

Indicators:

Volume: The volume bars have shown variability with recent bullish bars slightly outpacing bearish ones, indicating increased buying interest.


Moving Average: The price is currently above the moving average, indicating bullish momentum and potential continuation of the uptrend.


Ichimoku Cloud: The price is trading above the Ichimoku Cloud, further reinforcing the bullish sentiment.


RSI (Relative Strength Index): RSI is heading upwards but hasn’t reached the overbought level yet, suggesting there's room for further upward movement.

Pivot Point: Marked on the chart.


🎯 Profit Targets:


Buy Direction:

1st Resistance: 2004.37

2nd Resistance: 2013.33

3rd Resistance: 2020.06


❌ Stop Loss: Use the Support levels as stop loss. Given the lowest recent price, a stop loss slightly below 1972.99 would be prudent.


Suggestion: Based on the combined analysis of the indicators, it's recommended to enter a long position on XAUUSD, targeting the mentioned resistance levels while maintaining a stop loss just below 1972.99.

WTI, Crude oil, Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
West Texas Intermediate (WTI) crude oil

Trading Pair: WTI (West Texas Intermediate Crude Oil)

Trade Direction: BEARISH

Indicators

  • Volume: The volume bars towards the end of the chart seem to be relatively steady, with a few spikes indicating increased trading activity during certain sessions.

  • Moving Average: The WTI price is currently below the moving average, which is indicative of a bearish trend.

  • Ichimoku Cloud: The price is approaching the Ichimoku cloud from above. If it enters the cloud, it could signal a stronger bearish sentiment.

  • RSI (Relative Strength Index): The RSI is moving downward and is currently around the 40 mark, suggesting that the asset is approaching a potentially oversold condition but hasn't reached it yet.

  • Pivot Point: The most recent price point can be considered as the pivot.

🎯 Profit Targets:

Sell Direction:

  • 1st Support: 80.28 USD

  • 2nd Support: 78.75 USD

  • 3rd Support: (Considering previous lows, a projection can be around) 77.00 USD

Stop Loss:

  • Sell Direction: Use the first resistance level of 83.85 USD as the stop loss.

Suggestion: Based on the combined analysis of the indicators, selling WTI with a target towards the 1st and 2nd support levels might be a good strategy, but always maintain a stop loss at 83.85 USD to limit potential losses.

EUR/USD Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 EUR/USD

Trading Pair: EURUSD


Trade Direction: BEARISH


Indicators:

  • Volume: The volume bars appear consistent with no significant spikes indicating a steady market interest in the recent sessions.

  • Moving Average: The price of EURUSD is currently below the moving average, indicating a bearish sentiment.

  • Ichimoku Cloud: The price is trading below the Ichimoku Cloud, reinforcing the bearish sentiment.

  • RSI (Relative Strength Index): The RSI is showing an upward trend, suggesting potential bullish divergence. Traders should be cautious.

  • Pivot Point: Marked on the chart.

🎯 Profit Targets:


Sell Direction:

  • 1st Support: 1.057

  • 2nd Support: 1.052

  • 3rd Support: 1.049

Stop Loss:Sell Direction: Use the Resistance levels as stop loss, which is 1.068.


Suggestion: Given the combined analysis of the above indicators, a short position for EURUSD seems to be favorable. However, traders should be cautious of the potential bullish divergence indicated by RSI and consider setting a tight stop loss at the resistance level.

GBP/USD Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 GBP/USD

Trading Pair: GBPUSD


Trade Direction: BEARISH


Indicators:

Volume: The volume bars show a mixed pattern of buying and selling pressure, with the latest bars indicating increased selling pressure.


Moving Average: The GBPUSD price is below the moving average, suggesting a bearish trend.


Ichimoku Cloud: The GBPUSD price is below the Ichimoku Cloud, further confirming the bearish sentiment.


RSI (Relative Strength Index): The RSI is moving upwards towards the 50 mark but remains below it, hinting at a potential future bullish divergence, but the current sentiment remains bearish.


Pivot Point: Noted on the chart.


🎯 Profit Targets:


Sell Direction:


1st Support: 1.211

2nd Support: 1.206

3rd Support: 1.203


❌ Stop Loss: Sell Direction: Use the Resistance levels as a stop loss, placing it slightly above 1.228.


Suggestion: Considering the bearish indicators, a sell trade could be initiated around the current level, targeting the mentioned support levels. It's crucial to monitor the RSI for any bullish divergence and adjust strategies accordingly.


Ensure to place a stop loss slightly above the 1.228 level to safeguard against potential reversals.

USD/JPY Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 USD/JPY

Trading Pair: USDJPY


Trade Direction: BULLISH (Based on the recent upward movement of the price and the position above the Ichimoku Cloud.)


Indicators:

Volume: The volume bars towards the recent dates seem to be slightly increasing, indicating a possible increase in interest in this currency pair.


Moving Average: The price is above the moving average, suggesting a continued bullish sentiment.

Ichimoku Cloud: The price is positioned above the Ichimoku Cloud, indicating a bullish trend.


RSI (Relative Strength Index): The RSI is hovering around the 60 mark, suggesting that the pair is neither overbought nor oversold, with a slight inclination to the bullish side

.

Pivot Point: The pivot point is marked on the chart and serves as a key level for the pair's movement.


🎯 Profit Targets:


Buy Direction:


1st Resistance: 149.697

2nd Resistance: 150.293

3rd Resistance: 150.737


Stop Loss:

Buy Direction: Use the 148.213 level as a stop loss.


Suggestion: Given the bullish indicators, traders might consider entering a long position for USDJPY, targeting the resistance levels mentioned. Always ensure to set a stop loss to manage the risks effectively.

USD/CHF Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 USD/CHF

Trading Pair: USDCHF


Trade Direction: BULLISH

Indicators:

  • Volume: The volume bars show consistency throughout the recent period. This indicates steady interest in the pair.

  • Moving Average: The price is above the moving average, signaling a potential bullish momentum.

  • Ichimoku Cloud: The price is navigating near the Ichimoku Cloud, indicating a possible trend direction change in the near future.

  • RSI (Relative Strength Index): The RSI is hovering around the mid-level, showing no immediate signs of overbought or oversold conditions.

  • Pivot Point: The pivot point is visibly marked on the chart, serving as a crucial level for traders.

🎯 Profit Targets:


Buy Direction:

  • 1st Resistance: 0.905

  • 2nd Resistance: 0.907

  • 3rd Resistance: 0.909

Stop Loss:Buy Direction: Use the level of 0.898 as the stop loss.


Suggestion: Considering the above analysis, traders might look for buying opportunities around the pivot point, targeting the resistance levels mentioned. However, it's essential to monitor the Ichimoku Cloud and RSI for any abrupt changes in sentiment or trend direction.

NZD/USD Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
🟢 NZD/USD

Trading Pair: NZDUSD


Trade Direction: BEARISH


Indicators:

  • Volume: The volume bars have been relatively stable. A few spikes in volume can be seen which may indicate key trading moments.

  • Moving Average: The price is currently trading below the moving average, a bearish sign. The moving average serves as a resistance.

  • Ichimoku Cloud: The price is below the Ichimoku Cloud, indicating a bearish sentiment.

  • RSI (Relative Strength Index): The RSI is below the 50 mark, signaling a bearish momentum. However, it's slowly rising, suggesting potential upward pressure in the near future.

  • Pivot Point: The pivot point is marked on the chart. The price is currently trading below it, serving as a key resistance.

🎯 Profit Targets:


Sell Direction:

  • 1st Support: 0.5816

  • 2nd Support: 0.5789

  • 3rd Support: 0.5774


❌ Stop Loss:Sell Direction: Use the 1st Resistance (0.5858) as stop loss.


Suggestion: Based on the combined analysis of the above indicators, consider initiating a short position on NZDUSD with the aim of capturing potential downside.


The momentum is currently bearish, but always ensure to set a stop loss and monitor the trade closely as the RSI suggests potential upward pressure in the near future. Trade smart and mitigate risks.

AUD/USD  "A bar chart displaying forex currency and commodities prices with green and red candles representing trading trends over a daily time frame. The chart includes indicators such as moving average and Bollinger bands, along with the Relative Strength Indicator (RSI)."
🟢 AUD/USD

Trading Pair: AUDUSD


Trade Direction: BULLISH


Indicators:

  • Volume: The volume bars towards the end of the chart are relatively stable with a slight increase, signaling a potential strength in the bullish momentum.

  • Moving Average: The price is currently hovering around the moving average, suggesting that AUDUSD is at an equilibrium point, with potential bullish undertones given the recent upward candles.

  • Ichimoku Cloud: The price is below the Ichimoku Cloud, which generally signifies a bearish sentiment. However, given other indicators, a breakthrough might be anticipated.

  • RSI (Relative Strength Index): The RSI is around the 50 mark, suggesting neither an overbought nor oversold condition. This neutral position can provide flexibility for the price to move in either direction.

  • Pivot Point: The marked pivot point serves as a reference for potential support and resistance levels.

🎯 Profit Targets:


Buy Direction:

  • 1st Resistance: 0.6397

  • 2nd Resistance: 0.6419

  • 3rd Resistance: 0.6453

Sell Direction:

  • 1st Support: 0.6341

  • 2nd Support: 0.6307

  • 3rd Support: 0.6285

Stop Loss:

  • Buy Direction: Use the 0.6307 (2nd Support) level as a stop loss.

  • Sell Direction: Use the 0.6419 (2nd Resistance) level as a stop loss.

Suggestion: Given the proximity of the price to the moving average, combined with the neutral RSI, traders might consider a cautious buy position with a target towards the 2nd and 3rd resistance levels, but with a strict stop loss at the 2nd support level to minimize potential losses.


USD/CAD  "A bar chart displaying forex currency and commodities prices with green and red candles representing trading trends over a daily time frame. The chart includes indicators such as moving average and Bollinger bands, along with the Relative Strength Indicator (RSI)."
🟢 USDCAD

Trading Pair: USDCAD


Trade Direction: BULLISH


Indicators:

Volume: The volume bars in the most recent period show a consistent level with some spikes. This indicates that the upward move has genuine interest.


Moving Average: The price of USDCAD is currently above the moving average, suggesting a bullish trend.


Ichimoku Cloud: The price is trading above the Ichimoku Cloud, further indicating bullish sentiment.


RSI (Relative Strength Index): The RSI is hovering above the 50 mark but below the overbought threshold of 70, indicating a continuation of the bullish momentum without being overextended.


Pivot Point: Noted on the chart.


🎯 Profit Targets:


Buy Direction:

1st Resistance: 1.3866 2nd Resistance: 1.3907 3rd Resistance: 1.3932


Stop Loss:

Buy Direction: Use 1.3775 (Support level) as the stop loss.


Suggestion: Given the above indicators, the bullish trend appears to be strong for USDCAD. Traders might consider entering a long position with a stop loss at 1.3775. Profit targets can be set at the aforementioned resistance levels, with 1.3932 as the final target.

EUR/GBP, Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.
EUR/GBP

Trading Pair: EURGBP


Trade Direction: BEARISH

Indicators:

  • Volume: The volume bars show mixed activity with both buying and selling evident. However, the recent upsurge in price has not been accompanied by significant volume, indicating potential weakness in the bullish momentum.

  • Moving Average: The price is currently above the moving average, but a bearish crossover seems imminent, suggesting potential downward movement.

  • Ichimoku Cloud: The price is nearing the edge of the Ichimoku Cloud. A break below the cloud could be a bearish sign, further supporting the trade direction.

  • RSI (Relative Strength Index): RSI is moving towards the overbought territory. Historically, when RSI moves above 70 and then starts to decline, it can be a bearish indicator for this pair.

  • Pivot Point: The pivot point is marked on the chart, acting as a potential level of resistance.

🎯 Profit Targets:


Sell Direction:

  • 1st Support: 0.871 (First profit target level)

  • 2nd Support: 0.869 (Intermediate profit target level)

  • 3rd Support: 0.867 (Final and lowest profit target level)

Stop Loss:


Sell Direction: For enhanced protection, rather than using just the resistance levels as stop loss, consider setting the stop loss slightly above the recent high or the pivot point. A level like 0.878 might be more appropriate as it provides room for normal market fluctuations while still protecting from a strong bullish reversal.


Suggestion: Given the combined analysis of the above indicators, a short position on EURGBP seems favorable. Consider selling at the current level, targeting the mentioned support levels, and placing the improved stop loss at 0.878. As always, monitor the trade and adjust strategy based on any significant news or changes in market sentiment.


Disclaimer: Trading forex involves a significant risk of loss. Ensure you fully understand the risks involved and seek independent advice if necessary.

 

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As with all investments, your capital is at risk. Investments can fall and rise and you may get back less than you invested.


The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products.


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Comments and analysis reflect the views of CHAMP PROFIT at any given time and are subject to change at any time. ©2023 by Chump Profit.


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