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10.10.202210:49 Forex Analysis & Reviews: Tips for beginner traders in EUR/USD and GBP/USD on October 10, 2022

Details of the economic calendar for October 7

The main event of last Friday was considered to be the report of the United States Department of Labor, which surprised market participants. The unemployment rate was forecast to remain unchanged at 3.7%. However, US unemployment fell to 3.5%, which was a catalyst for demand for the dollar.

Non-farm Payrolls came out slightly below the forecast, but above the consensus of 263,000.

A strong labor market can become the trump card of the Fed in the tightening of monetary policy.

Analysis of trading charts from October 7

The EURUSD currency pair is moving on a downward trajectory from the parity level, as a result of which the quote dropped by about 270 points in a matter of days. In fact, there is a gradual process of restoring dollar positions relative to the recent correction from local trend lows.

Since the middle of last week, the GBPUSD currency pair has entered a phase of active decline. The pound sterling loses about 3.5% in value, which is more than 400 points of a downward move. The price area 1.1410/1.1525 is considered as resistance, against which a change in trading interests occurred.

Exchange Rates 10.10.2022 analysis

Economic calendar for October 10

Monday is usually accompanied by an empty macroeconomic calendar. Important statistics in Europe, the United Kingdom, and the United States are not expected.

In this regard, investors and traders will focus on the labor market data published last Friday, and monitor new incoming information.

Trading plan for EUR/USD on October 10

Despite the scale of the weakening of the euro, sellers are still in the market. For this reason, keeping the price below 0.9700 may well lead to a subsequent increase in the volume of short positions.

An alternative scenario considers a temporary stagnation relative to the current values, where long positions will be considered if the price returns above the value of 0.9750.

Exchange Rates 10.10.2022 analysis

Trading plan for GBP/USD on October 10

At the moment, the quote has approached quite close to the level of 1.1000, where earlier in history there was already a reduction in the volume of short positions in its area. Thus, a price rebound cannot be excluded from the possible scenario, which will lead to a partial recovery of long positions on the pound.

As for the downside scenario, in order to prolong the current cycle, the quote needs to stay below the level of 1.1000 for at least a four-hour period.

Exchange Rates 10.10.2022 analysis

What is shown in the trading charts?

A candlestick chart view is graphical rectangles of white and black light, with sticks on top and bottom. When analyzing each candle in detail, you will see its characteristics of a relative period: the opening price, closing price, and maximum and minimum prices.

Horizontal levels are price coordinates, relative to which a stop or a price reversal may occur. These levels are called support and resistance in the market.

Circles and rectangles are highlighted examples where the price of the story unfolded. This color selection indicates horizontal lines that may put pressure on the quote in the future.

The up/down arrows are the reference points of the possible price direction in the future.

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Gven Podolsky,
Analytical expert of InstaSpot
© 2007-2024
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