The Forex Zone – In the wake of a dovish Fed

Intermediate

In today’s Forex Zone we take a look at the day trade prospects for the Major Forex currency pairs in a week in which Federal Reserve Chairman Jerome Powell reinforced the market view that the Fed were on a more dovish path. Checkout the key levels to watch and the directional biases here for the Major Forex currency pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Risks stay back higher

A setback Thursday from just below our 1.1295 resistance (from 1.1286), but holding above 1.1241 support (at 1.1244), to sustain a positive tone from Wednesday’s surge up above 1.1234 and 1.1264 resistances and the July down trend line, to keep risks higher for Friday.

For Today:

  • We see an upside bias for 1.1286/95; break here aims for 1.1322/25, maybe 1.1360.
  • But below 1.1244/41 opens risk down to 1.1211, then maybe 1.1192 and even key 1.1180.
EURUSD Chart

GBPUSD: Still an upside bias

A dip Thursday but holding above 1.2483 support to sustain a positive tone from Wednesday’s solid rebound to reverse the July down trend line, that eased bear forces for a very small base pattern, to keep the bias higher into Friday.

For Today:                                               

  • We see an upside bias for 1.2581/88; break here aims for 1.2617.
  • But below 1.2483 opens risk down to 1.2438/37, possibly 1.2403/01.
GBPUSD Chart

USDCAD: Bias stays to the downside 

A bounce Thursday from just above the cycle low at 1.3031 (from 1.3036), but still capped by initial resistance at 13101 and then a selloff through the 1.3036/31 supports to a new cycle low at 1.3028 overnight, to reinforce the negative bias from Wednesday’s plunge from within our firm 1.3137/45 resistance area, to leave risks back lower for Friday.

For Today:

  • We see a downside bias for 1.3028; break here aims for 1.3000 and maybe towards 1.2961.
  • But above 1.3101 opens risk up to 1.3137/45.
USDCAD Chart

AUDUSD: Risks stay higher

A firm advance Thursday through 6994 resistance to build on Wednesday’s surge above .6938 and the accelerated down trend line from early July, further rejecting Tuesday’s plunge to reinforce a base and upside forces to keep the bias higher Friday.

For Today:                                                         

  • We see an upside bias for .6999; break here aims for .7017, maybe towards the key peak at .7048.
  • But below .6929 opens risk down to for key .6901.
AUDUSD Chart

NZDUSD: Upside risks to key .6729 for a bullish shift

A push to the topside on Thursday above .6657, to build on Wednesday’s strong rebound after an initial plunge, to push above the July down trend line, to keep a positive tone for Friday.

For Today:

  • We see an upside bias for .6689/94; break here aims for key targets at .6720/29.
  • But below .6638 opens risk down to .6590.
NZDUSD Chart

USDJPY: Downside risks intact

A selloff then rebound Thursday but capped by initial 108.73 resistance and whilst below here we still see negative forces Wednesday’s selloff for a small top pattern below the June-July up trend line, to keep risks lower into Friday.

For Today:

  • We see a downside bias for 108.11; break here aims for 107.83, maybe key 107.50.
  • But above 108.73 opens risk up to 108.99.
USDJPY Chart

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