Market Analysis

&
Trade Setups 30th Oct-3rd Nov
DXY
The dollar edged down against a basket of currencies on Friday, pulled down by portfolio rebalancing,
but was on track to end the week higher as fresh data reinforced the view the U.S. economy remains
on a firm footing.

U.S. consumer spending increased more than expected in September, signalling a strong fourth
quarter, while monthly inflation was elevated, data on Friday showed.

The major range of DXY is still the same. 107.35 at the top as resistance and 105.50 at the bottom as
support. Before Friday's NFP, there is good chance that market will remain sideways and stay inside
this range only.
GOLD
The conflict between Israel & Palestine is intensifying again. Israeli forces staged their largest ground
attack in Gaza so far in this war with Hamas overnight despite ongoing diplomatic efforts to delay an
expected full ground invasion.

Market broke the important resistance of 2000 and gave a clear sign on continuing uptrend. If the
market sentiment remains the same, day trading will not be idea because you will miss out a big chunk
of the profit. We are traders and we need to be flexible. If this market is going to trend then take a buy
at dip and sit.

We have supports around 1980-81 & 1986-87 but if market doesn't come for retracement, then we
can look for support around 1993-96 [previous resistance to work as support].

Incase market doesn't come for retracement; we can also buy at breakout [above 2010]

EURUSD
The U.S. economy grew at
its fastest pace in nearly
two years in the third
quarter, data on Thursday
showed, as higher wages
from a tight labour market
helped power consumer
spending.

The European Central Bank

on Thursday left interest
rates unchanged as
expected, ending an
unprecedented streak of 10
consecutive rate hikes. Data earlier this week showed euro zone business activity took a surprise turn
for the worse this month.

Technically, the pair is trading around the dynamic support of the trendline but the zone is confusing
and we don't have a clear picture. So, it would be wise for us to trade on levels that we can
understand.

If market drops and takes support around the previous lows, we can look for a buy.

Support 1: 1.0500-1.0485, Support 2: 1.0450-1.0440

Similarly, if market reverses from 1.0610 [previous high = Fibo 0.50] we can look for a sell there too.
And buy above 1.0610 if market breaks the previous high with volume

GBPUSD
There have been few specific British factors to have moved sterling this week since Tuesday's jobs
data that showed the labour market has lost some of its inflationary heat.

That sent the pound lower as it underscored market expectations that the BoE will keep rates on
hold at its meeting next week.

That absence of domestic news left the British currency at the mercy of global flows, notably the
broadly stronger dollar, whose gains in recent months have been underpinned by the sell-off in the
U.S. Treasury market that sent benchmark yields past 5% at one point this week.

Technically, GBPUSP too trading in an indecisive zone. If market drops and takes support around
1.2050-40, we can go long. If market shows some temporary upside, we can look for a sell around
1.2185-2200 [dynamic resistance and fibo]
NAS 100
After the big fall, NAS is trying it's best to find some support. But the market sentiment is not
favouring much and pressure is still present on the market. NAS has some support around 14000
from the 200 DMA but if market surprises with a news, then it would be wiser to follow the trend. If
market shows temporary recovery, we can look for a sell around 14550 [Fibo 0.382 + S=R] & 14700
[Fibo 0.5]

USDJPY
The Federal Reserve, Bank of England and the Bank of Japan all announce their latest monetary policy
decisions next week and it is the latter that is most likely to spark a fresh bout of volatility. While the
Fed and the BoE are expected to leave all policy dials untouched, the BoJ may well tweak their current
yield curve control policy and allow JGB yields to move higher. The Japanese central bank currently
caps the benchmark 10-year bond yield at 1%, and intervenes if this threshold comes under pressure,
but market talk at the moment suggests that the BoJ may allow market yields to rise to 1.5%, a hawkish
twist and one that would strengthen the Yen.

A drop may come on all the JPY pairs by Tuesday. Be careful.

AUDJPY
Market is showing price rejection from above for the last 3 weeks and if BoJ intervenes and JPY shows
upside, we will see selling on the JPY pairs including AUDJPY and we can sell below 94.00

AUDNZD
Market closed at resistance on the daily chart and we have a divergence too. If market reverses next
week, we can look for a sell. if market breaks, we can look for sell around the next resistance of 1.1040-
1.1060
EURNZD
The overall trend is Bullish and we have a Bullish flag on the daily timeframe. At present the market is
inside the flag. If market breaks 1.8260, we can consider it as a breakout and got for a buy

GBPAUD
Market respected previous fibo level on the daily chart and we can look for the same bounce around
the next fibo level of 1.8600. If market takes support, we can hit the buy button
Points to Remember:
➢ Too many events this week. Using SL is very
important

➢ If market remains dull/ slow on Monday, avoid

Breakout & Breakdown trades. Because without
volume it may fail

➢ There is no 100% guaranteed trade. So, always follow

risk management

➢ Be vigilant with your JPY pairs on Tuesday