Japanese rate decision: Tuesday morning. The Bank of Japan has failed to lift inflation despite a massive QE program and a negative interest rate. The current policy is to hold 10-year bond yields at 0%, thus buying bonds whenever needed. After the Japanese elections, the BOJ may reconsider its policy measures, but most BOJ meetings do not yield a change.
Euro-zone inflation data: Tuesday, 10:00. The European Central Bank already had its say, but the decision in December will certainly be impacted by inflation. Headline inflation was OK in October, at 1.5%. However, core CPI slipped back down to 1.1%. Will it pick up now? A full repeat is predicted now: 1.5% in the headline CPI and 1.1% in core CPI.
Canadian GDP: Tuesday, 12:30. The Canadian economy had a great start to the year but is showing some signs of a slowdown of late. Canada is unique in publishing GDP figures every month. In July, the economy stalled. It is likely to return to growth in this publication for August. A growth rate of 0.1% m/m is predicted.
US CB Consumer Confidence: Tuesday, 14:00. The Conference Board’s measure of consumer confidence has been relatively stable on high ground, around 120 points. It stood at 119.8 points in September. The score for October is higher: 121.1 points.
New Zealand jobs report: Tuesday, 21:45. New Zealand publishes its jobs report only once per quarter, making every publication a big splash. Back in Q2, the authorities reported a disappointing drop of 0.2% in the level of employment, but the unemployment rate remained low, at 4.8%. An improvement is likely now. The level of employment is predicted to jump by 0.8% and the unemployment rate is estimted to tick down to 4.7%.
JPY
Japanese rate decision
EUR
Euro-zone inflation data
CAD
Canadian GDP
USD
US CB Consumer Confidence
NZD
New Zealand jobs report
- EURUSD
As could be seen on the daily chart that the pair is traded below a strong resistance level (1.1660). So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1500 followed by 1.1300 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2000 ▪ 1.2100 ▪ 1.1660 |
▪ 1.1500 ▪ 1.1300 |
We remain bearish as long as the pair is traded below the level of 1.1660. |
- GBPUSD
As could be seen on the chart above that the pair is traded above an uptrend line shown in red on the chart. This is where we can go long. So, if the price goes down to reach that level, and in case it shows up some positive factors we can go long targeting the level of 1.3250 followed by 1.3450.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3700 ▪ 1.3650 |
▪ 1.2990 ▪ 1.2900 ▪ 1.2800 |
Waiting for the pair to reach one the levels mentioned in the report |
- GOLD
The pair is traded above an uptrend line shown on the chart in red besides a strong support level at 1267 and it managed to hold above it so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1290 followed by 1300 during the week.
| Resistance levels: | Support levels: | Recommended: | |
| ▪ 1350 ▪ 1305 ▪ 1300 |
▪ 1267 ▪ 1260 |
|
- AUDUSD
The pair managed to form a head and shoulders patter shown on the chart above and it also managed to break through the nick line of the pattern so this has opened the door for the pair for further downward movement that it may reach the level of 0.7500 followed by 0.7400.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8100 ▪ 0.8060 ▪ 0.7940 |
▪ 0.7400 ▪ 0.7500 |
We remain bearish as long as the pair is traded below the nick line of the pattern. |
- GBPJPY
The pair managed to form a bullish harmonic pattern that it may go down to reach the uptrend line shown on the chart that is where we can go long (PRZ) so we will be waiting for the pair to reach that level.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 152 ▪ 151 ▪ 155 |
▪ 148 ▪ 147 |
Waiting for the pair to reach the uptrend line. |
