The Forex Zone – US Dollar weakens post Fed rate cut

Intermediate

The US Dollar sold off across the board from Wednesday after the Federal reserve cut interest rates, leaving the immediate risks for the greenback lower into today’s US Employment report.

The Forex Zone highlights day trade ideas for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Bull theme intact

A Thursday dip but we see upside forces from Wednesday’s strong advance through 1.1123 and 1.1163 resistances to build on the Monday-Tuesday rebound from 1.1071 (from above 1.1063 support), to keep risks higher for Friday.

For Today:

  • We see an upside bias for 1.1176, 1.1183 and 1.1191; break here aims for 1.1191 1.1229, maybe 1.1250.
  • But below 1.1130 opens risk down to 1.1102/00 and 1.1071/63.
EURUSD Chart 2019-11-01

GBPUSD: Risks remain higher

A Thursday advance through 1.2950 resistances to reinforce the late October recovery efforts from 1.2787 above 1.2756 support, to keep risks higher for Friday.

For Today:                                              

  • We see an upside bias for 1.2976; break here aims for 1.3013 and maybe 1.3047.
  • But below 1.2899 opens risk down to 1.2843.
GBPUSD Chart 2019-11-01

USDCAD: Bias stay higher to key 1.3240

A dip and a rebound Thursday from just above our 1.3131 support (from 1.3133) to reinforce Wednesday surge’s after the Bank of Canada interest rate decision above 1.3146 and 1.3182 resistances, to keep risks to the upside Friday.

BUT we see risk for an intermediate-term shift to neutral above 1.3240.

For Today:

  • We see an upside bias for 1.3175/77; break here aims for 1.3208/12, maybe key 1.3240.
  • But below 1.3131 opens risk down to 1.3101/00 and maybe towards 1.3071.
USDCAD Chart 2019-11-01

AUDUSD: Bull tone

A Thursday rally up through various resistances including the key peaks at .6883 and .6895 to reinforce upside forces from both the latter October and mid-October upside extensions, to keep the bias higher for Friday.

For Today:                                                        

  • We see an upside bias for .6910; break here aims for .6929, maybe even .6955.
  • But below .6878 opens risk down to .6845 and maybe .6806.
AUDUSD Chart 2019-11-01

NZDUSD: Risks to the upside

A surge Wednesday-Thursday since the Fed Meeting through .6382 and .6408 resistances and the October peak at .6436, to reject recent negative forces and keep the threat still higher for Friday.

For Today:

  • We see an upside bias for .6442; break here quickly aims for .6451 and maybe .6499.
  • But below .6388 opens risk down to .6331.
NZDUSD Chart 2019-11-01

USDJPY: Threat lower to key 107.33

A Wednesday Shooting Start candlestick failure after the Fed Meeting from just below our key 109.32 resistance (from 109.29), then a Thursday-Friday plunge through multiple supports as low as 108.02, to signal a top and short-term bearish reversal and aim lower for Friday.

For Today:

  • We see a downside bias for 107.87/85; break here aims for key 107.33, maybe 107.01.
  • But above 108.38 opens risk up to 108.63, maybe 109.00/02.
USDJPY Chart 2019-11-01

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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