Market Observations October 22, 2018

by Alejandro Zambrano

Posted on October 22, 2018 at 11:00 AM

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In this brief article I take a look at a few interesting markets.

EURUSD continues to trade sideways, but a break to the October low of 1.1429 might send the price towards the August low of 1.1299.

EURUSD Daily Chart

Much like the EURUSD, the $GBPUSD remains trapped in a range. If the price manages to slide below the October low, the price might reach 1.2782, followed by 1.2666. While a break to the September high of 1.3307 might propel the price to the June high of 1.3472.

GBPUSD Daily Chart

Does the S&P 500 stand a chance?  It looks to me that the price is carving out a head and shoulders pattern.

S&P 500

The DAX 30 is showing a similar pattern.

DAX 30

In Asia, the Shanghai stock market composite is up by 4.09%, and the price is above the 2016 low of 2635. The rise has caused a bit of “risk-on” in some markets, but looking beyond the short-term price action the trend remains bearish below 2823.3.

Shanghai stock market composite

The rise of the China A50 index over the October 17 high of 11221.8 has dented the downtrend and spurred a bit of “risk-on” in financial markets such as the USDJPY.

China A50 Index

As projected over the last few days, USDJPY continues to drift higher. The short-term trend will remain bullish above the October 15 low of 111.58.

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About the Author

Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a common-sense attitude to offer LondiniumFX members a strategy that focuses on making fewer, smarter trades and building members’ understanding of the markets and the rationale behind investing. He is also the Global Chief Market Analyst with and ATFX UK. Before founding LondiniumFX in 2016, Mr. Zambrano was Head Analyst at FXCM’s London desk.