Forex Technicals

More Forex Technicals

CAD - Uptrend↗

Support / Resistance

vs HKD 5.5209 / 5.6809

vs USD 1.38 / 1.42

The recent resurgence in crude oil’s geopolitical premium has directly improved the outlook for Canada’s energy export revenues. Higher oil prices could also make local inflationary pressures more persistent, prompting markets to revise up expectations for Bank of Canada rate hikes and supporting the Canadian dollar

 

EUR - Uptrend↗

Support / Resistance

vs HKD 8.7021 / 8.9373

vs USD 1.11 / 1.14

Despite rising energy prices and unresolved French budget risks, the euro remains resilient against the US dollar. Following a technical pullback, selling momentum in the euro is expected to fade, leaving room for a rebound and recovery ahead

 

JPY - Downtrend↘

Support / Resistance

vs HKD 4.9306 / 5.0579

vs USD 155.00 / 159.00

Japan’s core consumer inflation rose 2.1% year on year in September, exceeding the Bank of Japan’s 2% target for the first time in nine months and signalling wider price pressures. Nevertheless, markets expect rates to remain unchanged on 30 October, potentially limiting the yen’s near-term upside

 

GBP - Uptrend↗

Support / Resistance

vs HKD 10.2700 / 10.5836

vs USD 1.31 / 1.35

The UK’s latest employment data was stronger than expected. In the three months to August, the ILO unemployment rate unexpectedly fell to 4.7%, while employment increased by 102,000. Together with the elevated consumer price index (CPI), the data supports market expectations of a Bank of England rate hike in November

 

AUD - Sideways➡

Support / Resistance

vs HKD 5.4094 / 5.5662

vs USD 0.69 / 0.71

The Reserve Bank of Australia’s Deputy Governor said that the inflation outlook in Australia has deteriorated further, and that it remains too early to determine whether another rate hike will be needed next month. But markets are currently pricing in around a 55% chance of a rate increase to 4.85% in November, up significantly from the start of this week

 

NZD - Uptrend↗

Support / Resistance

vs HKD 4.3118 / 4.5470

vs USD 0.55 / 0.58

New Zealand’s CPI rose 3.7% year on year in the third quarter. Although inflation has eased, it remains above the central bank’s 1%–3% target range. Markets still broadly expect the central bank to raise interest rates at its 28 October meeting

 

CNH - Uptrend↗

Support / Resistance

vs HKD 1.1701 / 1.1789

vs USD 6.65 / 6.70

China’s economy grew by 4.5% in the third quarter, beating expectations. September’s inflation and foreign trade data were broadly positive, suggesting that the gradual recovery in economic fundamentals should help boost market sentiment. The renminbi, meanwhile, is likely to remain broadly stable with a slight upward bias, supported by increased demand for foreign-exchange settlement

 

CHF - Sideways➡

Support / Resistance

vs HKD 9.3330 / 9.7996

vs USD 0.80 / 0.84

Minutes from the Swiss National Bank’s September meeting indicated that it saw less need to curb the franc’s appreciation through foreign-exchange market intervention. Markets may scale back expectations of central-bank intervention, providing some support for the Swiss franc

 

XAU - Uptrend↗

Support / Resistance

vs HKD(Oz) 31,359 / 34,495

vs USD(Oz) 4,000 / 4,400

Rising real yields on US Treasuries have weighed on gold, a non-yielding asset. However, ongoing geopolitical conflicts have sustained safe-haven demand, providing some support for gold prices. These opposing forces remain locked in a tug-of-war. The subsequent direction of US Treasury yields will be key in determining whether gold can break out of its current range

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

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