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07.10.202212:21 Forex Analysis & Reviews: Technical analysis recommendations on EUR/USD and GBP/USD for October 7, 2022

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EUR/USD

Exchange Rates 07.10.2022 analysis

Higher timeframes

Bears are looking to build on the rebound that was formed while testing the resistances led by the 1.0000 psychological level. As of writing, the pair is supported by the levels of the daily Ichimoku cross (0.9867 - 0.9768). The breakdown of the supports and the continuation of the decline will make the main target of the bears to update the low (0.9536) and restore the downward trend.

Exchange Rates 07.10.2022 analysis

H4 – H1

On the lower timeframes, the key level responsible for the balance of power was broken. Now the weekly long-term trend (0.9857) and the central pivot point (0.9834) are forming resistance in case of a retest. The classic pivot points (0.9743 – 0.9696 – 0.9605) serve as benchmarks for the continuation of the decline within the day. If bulls can regain key levels (0.9834-57), then attention will be directed to the resistance of the classic pivot points (0.9881 - 0.9972 - 1.0019), as well as to overcome the important milestones of the higher timeframes, for example, level 1.0000.

***

GBP/USD

Exchange Rates 07.10.2022 analysis

Higher timeframes

When meeting with the resistance zone 1.1317 - 1.1411 - 1.1421 (weekly levels + historical level), bulls took a break. As a result, the opponent seeks to seize the initiative. Support, attraction and influence are now provided by the levels of the daily Ichimoku cross, which at the moment can be noted at 1.1209 - 1.1046 - 1.1017 - 1.0883. Going beyond the designated benchmarks can contribute to the emergence of new plans and prospects.

Exchange Rates 07.10.2022 analysis

H4 – H1

On the lower timeframes, the pair went down under the key levels and is currently trying to retest them. The key levels today are at 1.1276-17 (weekly long-term trend + central pivot point). If bears manage to keep these lines, then we can expect further strengthening of bearish sentiment. The reference points for intraday decline can be noted at 1.1052 - 1.0946 - 1.0781 (classic pivot points). If the resistances 1.1276-17 are broken, then the bulls will try to continue restoring their positions, and their attention will be directed to passing 1.1323 – 1.1488 – 1.1594 (classic pivot points) and 1.1588 (100 % completion of the target for the breakdown of the H4 cloud).

***

In the technical analysis of the situation, the following are used:

higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

Evangelos Poulakis
Analytical expert of InstaForex
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