Technical Outlook

-USDCAD is in an uptrend with the 50MA ranging below the price. A major support and resistance zone at $1.34406 and $1.3771.

-GBPJPY shows a break of bearish channel and a double bottom formation. The market may show some bullish sentiment as the confluence is more towards the buyers.

U.S. Core Retail Sales MoM

Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD

The previous Actual data was 0.6% while the forecasted data is 0.4%. The report is due Tuesday, October 17, 2023, 18.00 GMT

USDCAD Technical Analysis:

USDCAD was in a downtrend until the last of July, when it first formed a swing low(a potential support zone in future). For instance, the price went up, forming a higher high and lows, and went down drastically, forming the double bottom pattern.

The price moved up, trading inside the bullish channel. Price also broke above the 50MA, which shows the market sentiment is bullish in the mid-term. The price surged 3.74% after crossing the MA. The overall trend is now bullish with a valid bullish trend line.

A support and resistance zone at $1.34406 and $1.37719 is crucial, and traders must keep a watch at these levels.

Pivot Points: USDCAD

U.K. Consumer Price Index (CPI) YoY

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

The previous actual data stands at 6.7%. The forecasted data is 7.0%. The report is due

Wednesday, October 18, 2023, 11:30 GMT.

GBPJPY Technical Analysis:

GBPJPY in Daily TF shows bearish momentum. There was a first supply zone formation at 178.304 on 27th July. A big bearish engulfing candle was formed, followed by a big bullish candle showing buyers’ sentiment in the market.

For a while, the price went up, forming higher highs, but the RSI line formed a higher high and a lower high, forming an RSI Bearish Divergence, signalling the price bearish movement is due.

The price later formed a lower high and lower low, crossing below the 50MA. The price touched the previously formed supply zone and made it a valid support. A big candle rejection from the buyers could be seen, after which the price broke the bearish channel. Traders may go into a lower time frame for any significance of break and retest. However, if the price does not break the high, we still need to be sell-biased.

Pivot Points: GBPJPY

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