MikhailLF

XAG/USD: general analysis Current trend Silver stays at last week's levels, trading at $24.65 per ounce. World prices for precious metals are still fairly stable. The amount of investment capital is held without significant changes. According to the latest data from the Commodity Futures Trading Commission (CFTC), over the past week, the number of pure speculative positions in silver increased slightly, reaching 45.8K against 45.3K a week earlier. The indicators of demand for a commodity asset do not change either. In October, the volume of industrial production of the main importer of metal, China, remained at the September levels and amounted to 6.9%. At the same time, the unemployment rate in October fell to 5.3% from 5.4% in the previous month. The level of foreign direct investment continues to grow and is already at the level of 2019, reaching 6.40%. Support and resistance On the global chart of the asset, the price continues to correct downward within the downwards channel. After reaching the resistance line, another wave of decline continues to form. Fast EMAs on the Alligator indicator intertwined with the signal one and the AO oscillator histogram is at the transition level and is ready to enter the negative zone at any moment. Resistance levels: 25.73, 29.10. Support levels: 24.00, 21.60.

EUR/USD: wave analysis The pair may grow. On the daily chart, the first wave of the higher level 1 of (3) develops, within which a local correction ended as the wave iv of 1. Now, the development of the fifth wave v of 1 has begun, within which the first entry wave of the lower level (i) of v has formed, and a correction has developed as the wave (ii) of v. If the assumption is correct, the pair will grow within the wave (iii) of v to the levels of 1.2012–1.2200. In this scenario, critical stop loss level is 1.1739.

Current trend USD declines actively against JPY during today's Asian session, developing a correctional impulse formed the day before. USD is actively testing 105.00 for a breakdown, partially offsetting the active growth of the instrument at the beginning of the week, which was caused by the reports of the successful completion of the Phase III of clinical trials of the Pfizer coronavirus vaccine. Some support to USD on Thursday was provided by the data on the dynamics of jobless claims. The number of Initial Jobless Claims for the week ending November 6 decreased from 757K to 709K, which turned out to be better than the projected 735K. The number of Continuing Jobless Claims for the period ending October 30 also showed a steady decline from 7.222M to 6.786M with the forecast for a decrease only to 6.9M. Support and resistance In the D1 chart, Bollinger Bands are reversing horizontally. The price range is widening from above, maintaining the "bullish" momentum in the short term after the strong growth of the instrument on November 9. MACD is reversing downwards preserving the previous buy signal (located above the signal line). Stochastic is showing similar dynamics, retreating from its highs, indicating the overbought USD in the ultra-short term. It is worth looking into the possibility of a corrective decline in the short and/or ultra-short term. Resistance levels: 105.00, 105.33, 105.60, 105.79. Support levels: 104.75, 104.50, 104.20, 104.00.

USD/CAD: wave analysis The pair may fall. On the 4-hour chart, a correction of the higher level developed as the wave (2), and the formation of the downward wave (3) started. Now, the first wave of the lower level i of 1 of (3) has formed. If the assumption is correct, after the end of the local correction ii of 1 of (3), the pair will fall to the levels of 1.2800–1.2700. In this scenario, critical stop loss level is 1.3156.

EUR/USD: wave analysis The correction ended, the pair may grow. On the daily chart, the first wave of the higher level 1 of (3) develops, within which a local correction ended as the wave iv of 1. Now, the development of the fifth wave v of 1 has started, within which the first entry wave of the lower level (i) of v has formed, and a correction is forming as the wave (ii) of v. If the assumption is correct, after the end of the correction the pair will grow to the levels of 1.2012–1.2200. In this scenario, critical stop loss level is 1.1603.

USD/CHF: wave analysis The pair may grow. On the 4-hour chart, an upward correction of the higher level forms as the wave (2), within which the development of the wave C of (2) started. Now, the first wave of the lower level i of C is forming. If the assumption is correct, the pair will grow to the levels of 0.9295–0.9398. In this scenario, critical stop loss level is 0.8982.

XAU/USD: wave analysis The pair may grow. On the 4-hour chart, the third wave of the higher level (3) develops, within which the wave 5 of (3) forms. Now, the third wave of the lower level iii of 5 is forming, within which the wave (iii) of iii is developing. If the assumption is correct, the pair will grow to the levels of 2013.38–2074.22. In this scenario, critical stop loss level is 1880.51.

Brent Crude Oil: oil is weakening Current trend Oil prices began to decline again, dropping to $39.50 per barrel. EIA data on oil reserves confirmed OPEC's negative scenario. The indicator fell by 7.998 million barrels against the background of the expected increase in reserves by 0.890 million. These data did not have a positive effect on the instrument. On the contrary, investors began to expect with even greater concern the data correction next week. Yesterday, Saudi Aramco said it would cut its December selling prices for Asian buyers. The company decided to take such a step due to a decrease in demand for the company's products under the influence of the second wave of the COVID-19 pandemic. It is becoming more and more obvious that at the OPEC meeting to be held in mid-November, the main issue will be a new cut in production volumes, which the Russian Federation is actively opposing so far. Support and resistance On the local chart, the price moves within the local Expanding formation pattern, within which it approaches the resistance line. Technical indicators are in the state of a sell signal but are starting to slow down. The range of fluctuations of the EMA indicator Alligator begins to narrow, and the histogram of the AO oscillator is approaching the buy zone. Resistance levels: 41.10, 43.50. Support levels: 38.90, 35.30.

Current trend The USD/JPY pair continues to correct downward, trading at 104.30. The Japanese currency began to actively win back yesterday's losses from the very morning. Service PMI for October, released in the morning, was positive, rising unexpectedly to 47.7 points against the forecast of 46.9 points. Yesterday, the Monetary Policy Committee met to focus on the impact of the pandemic on Japanese growth. According to the committee's forecasts, economic growth by the end of the year will slow down by a value in the range of –5.6% to –5.3%, and in 2021 it will again recover to the levels of 3.0–3.8%. The US dollar lost its positive momentum. The preliminary election results, which were positive for Donald Trump, threaten to turn into defeat. According to the election headquarters, Joe Biden is already gaining 264 electoral votes, while Trump has only 214. Trump has already begun to actively declare fraud and readiness to sue to review the results in key states, where he first won but then unexpectedly lost. Support and resistance The global downtrend continues to form within the downtrend channel, within which another wave of decline is forming. Technical indicators are in a global sale state. Fast EMAs of the Alligator indicator are below the signal one, and the histogram of the AO oscillator is trading deep in the negative zone. Resistance levels: 104.70, 105.30. Support levels: 104.15, 103.00.

WTI Crude Oil: a new growth wave Current trend The oil price came to a standstill after a sharp rise, trading near the level of 36.70. The oil market is at extremely low levels, and traders’ hopes were focused on the new parameters of the OPEC+ deal, which assumed an increase in production volumes from the beginning of 2021 in proportion to the increase in demand. However, demand is declining more and more, so only new reductions are being discussed. On Friday, OPEC published production levels in its member countries. As the data showed, most countries reduced it according to the last monitoring committee meeting’s plan, and growth is observed only in Libya, which is also expected. The volume of production there amounted to 0.16 million against 0.11 million earlier. The largest reduction was achieved in the UAE, where production is 2.53 million barrels per day against 2.71 million earlier. Saudi Arabia also slightly increased production, where it is 8.96 million barrels per day against the background of 8.89 million a month earlier. Support and resistance The corrective movement continues within the global sideways channel, within which the price forms a new growth wave. Technical indicators remain in a sell signal state. Alligator indicator’s EMA fluctuations range begins to narrow, and the histogram of the AO oscillator moves in the negative zone. Resistance levels: 37.90, 42.00. Support levels: 34.20, 28.70.

USD/CAD: the pair grows Current trend The USD/CAD pair slightly grows amid lower USD activity, trading at 1.3340. The American market is almost completely frozen. Trading volume and USD Index fell to their lows since the beginning of the year. Tomorrow, the most anticipated event of the year will take place – the US presidential election. Although most preliminary polls point to Joe Biden's victory, nothing has been decided yet since previously, the situation was the same with Hillary Clinton, who was also far ahead of Donald Trump in polls. Canada's economy continues to recover smoothly, approaching pre-pandemic levels. The GDP level for August reached 1.2%, and the indicator has been growing for the fourth month in a row. The levels of production of goods and services increased by 0.5% and 1.5%, respectively, while the price indices for goods and raw materials slightly decreased to –0.1% and –2.2%. 15 industrial sectors out of 20 strengthened, and 2 of them did not change. Support and resistance On the global chart, a rare pattern of candlestick analysis Volume candlestick has formed, which is quite logical, given the fundamental background. For the pattern, the direction of price movement is not important, and pending orders should be placed in both directions. Technical indicators are in purchase. Fast EMAs on the Alligator indicator crossed the signal one upwards, and the AO oscillator histogram entered the buy zone. Resistance levels: 1.3389, 1.3468. Support levels: 1.3277, 1.3225.

GBP/USD: the instrument is declining Current trend GBP is trading near zero against USD during today's Asian trading session, consolidating near 1.2900, which was actively tested the day before. Quite good data from the USA provided some support to USD yesterday. The dynamics of US GDP in Q3 2020 showed a steady growth of 33.1% YoY, fully compensating for an equally active decline of 31.4% in the previous quarter. Analysts had expected growth rate at 31% YoY. Initial Jobless Claims for the week ending October 23 fell from 791K to 751K, which turned out to be better than the projected 775K. British investors, in turn, reacted negatively to the fall in Consumer Credit in September by GBP 0.6B after rising by GBP 0.285B last month. Analysts expected growth of GBP 0.75B. Support and resistance In the D1 chart, Bollinger Bands are reversing horizontally. The price range is expanded from below reflecting rise of "bearish" sentiment in the short term. MACD is going down preserving a stable sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the risks of oversold GBP in the ultra-short term. Existing short positions should be kept until technical indicators are clarified. Resistance levels: 1.2960, 1.3000, 1.3081, 1.3125. Support levels: 1.2900, 1.2850, 1.2800, 1.2761.

XAG/USD: general review Current trend Silver prices are showing modest gains during today's morning trading session, correcting after a strong decline the day before, which led to renewed local lows since October 7. Investors are worried about new restrictions that more and more European countries are imposing in response to increasing epidemiological risks. A serious increase in the incidence is also observed in the US, where presidential elections are to be held on November 3. The market seems to have come to terms with the fact that there is no time left to approve new support measures for the American economy before the elections, and the main intrigue now is whether Donald Trump will be able to arrange the approval of the agreement after the vote count. Today, investors await the publication of updated data on the dynamics of Initial Jobless Claims in the USA, as well as the data on the US GDP for Q3 2020. Support and resistance Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is expanding from below; however, it fails to catch the surge of the "bearish" sentiment at the moment. MACD is going down keeping a fairly stable sell signal (located below the signal line). Stochastic, having approached the level of "20" is reversing upwards, signaling in favor of the development of corrective growth in the ultra-short term. To open new trading positions, it is necessary to wait for the signals from technical indicators to be clarified. Resistance levels: 23.60, 24.00, 24.37, 25.00. Support levels: 23.00, 22.40, 21.63, 21.00.

EUR/USD: the euro is declining Current trend EUR has been declining against USD during today's Asian trading session, building on the "bearish" momentum that formed earlier this week. Risk demand remains under pressure again amid an alarming rise in the global incidence of COVID-19. Investors are also disappointed with the approval process for a new stimulus package for the US economy. Despite all the efforts of US lawmakers, it seems that there will be no results before the November elections. The Senate majority leader Mitch McConnell decided to postpone the meeting until November 9, which practically puts an end to the last hopes of reaching agreement on the deal. The bailout and stimulus package was not approved due to the principled position of the Senate, which did not agree to Donald Trump's proposal to approve a larger aid package. Support and resistance In the D1 chart, Bollinger Bands are reversing horizontally. The price range consolidated within rather wide boundaries, which correspond to the observed dynamics in the market. MACD is going down preserving a moderate sell signal (located below the signal line). Stochastic is declining almost vertically, rapidly approaching its lows, indicating the risks of oversold EUR in the ultra-short term. Existing short positions should be kept until technical indicators are clarified. Resistance levels: 1.1800, 1.1830, 1.1850, 1.1879. Support levels: 1.1763, 1.1732, 1.1700, 1.1657.

WTI Crude Oil: oil weakens again Current trend Oil prices continue to decline, trading around 38.60. It looks like COVID-19 will again intervene in OPEC's long-term plans. During the next meeting, which is scheduled for November, the OPEC countries were expected to discuss the issue of increasing quotas for oil production by 2 million barrels per day but there is less hope for this. The second wave of the pandemic provokes new restrictive measures that negatively affect demand. Additional difficulties were created by Libya, which plans to increase production by 800K barrels over the next two weeks, and by 1 million barrels within a month. In general, experts assess the supply on the oil market as overstated, and with the current demand, the asset's quotes will continue to decline further. Support and resistance The corrective movement continues within the local sideways channel, within which the price forms a new wave of decline. Technical indicators reversed and gave a clear sell signal. Alligator indicator’s EMA fluctuations range is expanding towards decline, and the histogram of the AO oscillator is trading in the negative zone. Resistance levels: 39.00, 41.30. Support levels: 38.20, 36.50.

Morning Market Review EUR/USD EUR is falling against USD during today's Asian session, again consolidating near local highs, updated in the middle of last trading week. The pressure on EUR remains amid the ambiguous prospects for the global economy, which faced a second wave of COVID-19 and a number of restrictions imposed mainly by European countries. Macroeconomic statistics on business activity in the eurozone released last Friday were disappointing. Markit Services PMI in October declined from 48 to 46.2 points with the forecast of the decline to 47 points. At the same time, Manufacturing PMI for the same period increased from 53.7 to 54.4 points, which turned out to be better than the forecasts of growth to 53.1 points. The Composite PMI in October fell below the psychological level of 50 points to 49.4 points, which, in general, was in line with market expectations. GBP/USD GBP is trading with negative dynamics against USD since the opening of a new trading week, developing a fairly strong "bearish" momentum, which was formed in the middle of last week. The instrument almost completely ignored the strong UK Retail Sales statistics released on October 23. The data reflected Retail Sales growth by 1.5% MoM in September after rising by 0.9% MoM in the previous month. Analysts had expected a slowdown in the index to 0.4% MoM. On an annualized basis, sales rose by 2.7% to 4.7% YoY, which was also better than average forecasts of 3.7% YoY. Business activity statistics were significantly worse. Markit Manufacturing PMI fell in October from 54.1 to 53.3 points, which was only 0.2 points better than market expectations. Services PMI fell from 56.1 to 52.3 points with the forecast of falling to 54 points. AUD/USD AUD declines against USD during today's morning session, correcting after an uncertain rise in the instrument at the end of the last trading week. The pair is under pressure from the corrective growth of USD, while the fundamental picture of the market changes insignificantly. AUD also reacts sluggishly to the macroeconomic statistics from Australia released on Monday. Exports from Australia increased by 3% in September after falling by 4.2% in the previous month. Imports for the same period fell by 1% after rising by 2% in August. Such a significant discrepancy between the dynamics of imports and exports led to an increase in the trade surplus almost doubled, from AUD 2.643B to AUD 5.114B. Today, investors are focused on statistics from the United States on the dynamics of New Home Sales and Chicago Fed National Activity Index for September. USD/JPY USD has shown strong gains against JPY during today's Asian session, preparing to test the strong resistance at 105.00. Moderate support for USD is provided by the macroeconomic statistics from the US on business activity published at the end of the last trading week. Markit Manufacturing PMI in October showed a slight increase from 53.2 to 53.3 points, which fell slightly short of market expectations. In turn, Services PMI for the same period increased from 54.6 to 56 points, while analysts did not expect any changes in the indicator at all. Markit Composite PMI in October rose from 54.3 to 55.5 points. XAU/USD Gold prices show flat dynamics during today's morning session, consolidating near 1900.00. The instrument has been declining since last Thursday, when USD managed to show corrective growth in response to mixed messages regarding the new economic stimulus package in the US. After repeatedly saying that it would be extremely difficult to reach an agreement before the November US elections, House Speaker Nancy Pelosi announced "significant progress" on the deal and said new measures could be approved "very soon". The presidential elections in the United States will take place next week, on November 3.

Brent Crude Oil: price stabilized Current trend Oil prices are in a narrow range, rising to $42.20 per barrel. The hope that the US Congress will approve the new stimulus package before the elections has almost completely disappeared after the next negotiations did not take place, and the representatives on both sides cited the workload of their schedules, thereby signaling to the markets that the deal was unnecessary. The dollar immediately declined, and oil price returned to the levels of the beginning of the week after declining on Wednesday on data from the EIA. Yesterday, the World Bank raised its forecast for the average oil price in 2020 to $41 per barrel. The forecast for next year has also been increased to $44 per barrel. However, the organization noted that demand will grow very slowly, as global tourism continues to be hampered by the COVID-19 pandemic, and the global economy is not expected to recover until next year. Support and resistance On the local chart, the price moves within a wide sideways channel and, being near the resistance line, forms a narrower corridor. Technical indicators are in the state of a buy signal. Fast EMAs of the Alligator indicator crossed with the signal one and the AO oscillator histogram came close to the transition zone. Resistance levels: 42.50, 43.50. Support levels: 42.00, 41.10.

EUR/USD: EUR is declining Current trend EUR shows moderate decline against USD today, retreating from local highs since September 16, updated the day before. Technical factors were the reason for the appearance of the "bearish" trend for the instrument, while USD remains under pressure amid expectations of new measures to support the American economy. The deadline for the ultimatum put forward by the House of Representatives Speaker Nancy Pelosi expired the day before, but she chose to extend the deadline for one more day. In turn, Donald Trump has stepped up pressure on the Republican Party in an attempt to approve a larger aid package. On Thursday, in addition to news regarding the long-awaited stimulus measures for the US, investors expect the publication of data on jobless claims in the US. Interesting data from Europe will appear on Friday, when the business activity indicators for October are released in Germany and the eurozone. Support and resistance Bollinger Bands in D1 chart show moderate growth. The price range is expanding from above, but it fails to catch the development of "bullish" trend at the moment. MACD indicator is growing preserving a stable buy signal (located above the signal line). Stochastic keeps the uptrend but is approaching its highs, which reflects the risks of overbought EUR in the ultra-short term. Technical indicators do not contradict the further development of the "bullish" trend in the short and/or ultra-short term. Resistance levels: 1.1850, 1.1879, 1.1916, 1.1950. Support levels: 1.1830, 1.1800, 1.1763, 1.1732.

XAU/USD: gold is strengthening Current trend Gold prices are rising during today's Asian session, taking advantage of the weakness of USD and updating local highs since October 13. The instrument is still supported by a high level of uncertainty in the market, which is associated with many factors. One of them is a new program of financial assistance for the American economy, around which real political battles unfolded. Investors are also noticeably concerned about the leadership of Democrat Joe Biden in the election race, which, if elected president, could dramatically increase budget spending, including supporting the economy amid the ongoing pandemic. The final debate of the presidential candidates will take place this Thursday, October 22. Support and resistance In the D1 chart, Bollinger Bands are reversing horizontally. The price range is slightly narrowing from below, reflecting the ambiguous dynamics of trading in the short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). The indicator is about to test the zero level for a breakout. Stochastic is showing similar dynamics, approaching the level of "80", which indicates that the instrument is overbought in the ultra-short term. Existing long positions should be kept until the situation clears up. Resistance levels: 1920.82, 1935.00, 1955.00, 1966.25. Support levels: 1910.00, 1900.00, 1885.00, 1872.80.

WTI Crude Oil: oil prices are consolidating Current trend At the beginning of the week, oil prices show flat dynamics, holding near the level of $40.50 per barrel. Yesterday, the instrument was slightly supported by renewed hopes that a new stimulus package in the United States will be adopted before the presidential elections in November. However, by the close of the daytime session, optimism in the sentiment declined, and investors returned to discussing other problems. A new growth factor may be the upcoming OPEC+ meeting in Vienna, where the cartel and its allies are expected to adjust the current program to reduce the supply of "black gold" to the market, as well as clarify the prospects for a gradual recovery in oil production next year. On Tuesday, investors are focused on the American Petroleum Institute's report on oil reserves for the week of October 16. The previous publication reflected a sharp decline of 5.42 million barrels. Support and resistance On the daily chart, Bollinger bands move flat. The price range narrows slightly from below, remaining spacious enough for the current level of market activity. The MACD indicator slightly decreases, maintaining a poor sell signal (the histogram is below the signal line). Stochastic reversed at 80 and signals in favor of developing a corrective decline in the ultra-short term. It is better to wait for the clarification of signals from technical indicators for opening new trading positions. Resistance levels: 41.00, 41.43, 42.00. Support levels: 40.00, 39.57, 38.97, 38.62.

Brent Crude Oil: prices stabilized Current trend Against the backdrop of global tensions on world markets, oil prices are trading within a narrow range, currently being around $42.70 per barrel. This week, the instrument has practically not changed against the previous week. The oil market is under pressure from low demand for energy, the forecast of which looks unfavorable against the background of the introduction of additional quarantine measures in the EU countries, which are the main importers. Moreover, the volume of oil exports from the United States fell to the year’s lows at 2.135 million barrels per day. According to the Commodity Futures Trading Commission, the demand for oil contracts has been staying at roughly the same levels for over a month. The number of pure speculative positions showed a slight weekly increase to 472.8K against 471.5K a week earlier. Support and resistance Locally, the price moves within a wide sideways channel, and, trading near the resistance line, forms the first signs of a possible reversal. Technical indicators are in the state of a buy signal but the readings are not so obvious anymore. Alligator indicator’s EMA fluctuations range began to narrow, and the AO oscillator histogram is in the buy zone very close to the transition level. Resistance levels: 43.20, 46.00. Support levels: 42.35, 39.10.

EUR/USD: waiting for new drivers Current trend EUR is trading in different directions against USD during today's morning session, waiting for new drivers. The trading on Wednesday was also mixed, which was facilitated by the low demand for risk, as well as the weak position of USD against the background of vague prospects for new stimuli in the US. The statistics from the eurozone released on Monday put additional pressure on EUR. Industrial Production in August fell sharply from 5% MoM to 0.7% MoM, which turned out to be slightly worse than market expectations at +0.8% MoM. In annual terms, the decline in production accelerated from –7.1% YoY to –7.2% YoY, which, however, coincided with the forecasts. European investors are focused on the speech of ECB President Christine Lagarde before the start of the IMF and European Council meetings at the end of the week. Support and resistance Bollinger Bands in D1 chart show unsteady growth. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD reversed downwards having formed a new sell signal (located below the signal line). In addition, the indicator tests the zero mark for the breakdown. Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the risks of oversold euro in the ultra-short term. Existing short positions should be kept until technical indicators are clarified. Resistance levels: 1.1780, 1.1806, 1.1850, 1.1881. Support levels: 1.1732, 1.1700, 1.1657, 1.1625.

XAU/USD: gold prices are going down Current trend Gold prices are relatively stable during today's Asian trading session and are consolidating at 1900.00. The day before, the instrument showed a confident decline, which was caused by the growth of USD in response to the general deterioration in market sentiment. Investors are still discussing the topic of stimulus measures for the US economy, but more and more analysts are in favor of the fact that the new package of measures will be adopted after the US presidential elections on November 3. Additional support for gold is also provided by the fact that Joe Biden is leading in the presidential race, since if he wins the election, the presidential administration may increase spending at first. Finally, the difficult situation with the coronavirus in the world contributes to the growth in demand for safe assets. WHO records the strongest increase in daily incidence since spring, while no state has completed clinical trials of the vaccine yet. Johnson & Johnson is suspending trials of its vaccine because one of the volunteers had adverse reactions. Support and resistance In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting the multidirectional dynamics appearance in the short term. MACD reversed downwards having formed a new weak sell signal (located below the signal line). Stochastic is showing slightly more stable decline and is located in the middle of its area. Resistance levels: 1900.00, 1920.82, 1935.00, 1955.00. Support levels: 1885.00, 1872.80, 1850.00.

WTI Crude Oil: prices are falling Current trend Today during the Asian session, oil prices are consolidating near $39.50 per barrel after a two-day “bearish” rally. At the start of the week, quotes were under pressure by increased market supply as US oil producers resumed their work in the Gulf of Mexico as Hurricane Delta moved inland. Also, production is increasing in Libya, where the largest field, El Sharara, has resumed its work. Finally, Norwegian oil workers have ended their strike, which should also help boost oil production. On Tuesday, investors are focused on the statistics from the US on consumer inflation and the API report on oil reserves for October 9. The previous publication reflected a slight increase of 0.951 million barrels. Support and resistance On the daily chart, Bollinger bands are moving flat. The price range remains virtually unchanged, remaining spacious enough for the current level of market activity. The MACD indicator is stretching into the line near the zero line. At the moment, the indicator readings are not informative enough. Stochastic, on the other hand, maintains a confident downward trend, which hardly correlates with the real dynamics in the market. It is better to wait until the market situation becomes clear to open new trading positions for the instrument. Resistance levels: 39.57, 40.00, 40.60, 41.43. Support levels: 38.97, 38.62, 38.00, 36.75.

USD/JPY: USD remains under pressure Current trend USD is actively declining against JPY during today's Asian trading session, developing last Friday's "bearish" signal, which was formed against the backdrop of a sharp rise in risk demand. Traders reacted to renewed talks on a new stimulus package for the American economy, despite Donald Trump's decision to suspend them last week until the presidential election in November. The Japanese macroeconomic statistics released today had an ambiguous impact on the instrument dynamics. Bank Lending in September slowed down from +6.7% YoY to +6.4% YoY with the forecast of growth to +7.5% YoY. Machinery Orders in August sharply slowed down from +6.3% MoM to +0.2% MoM, which, however, turned out to be better than the expected –1.0% MoM. Support and resistance On the D1 chart Bollinger Bands are sharply reversing horizontally. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD is going down having formed new sell signal (located below the signal line). Stochastic demonstrates a more confident decline and is currently located approximately in the center of its area, signaling the prospects for the development of an ultra-short-term downward correction. Current showings of the indicators do not contradict the further development of the downtrend in the short term. Resistance levels: 105.60, 105.79, 106.00, 106.20. Support levels: 105.43, 105.19, 105.00, 104.75.