The Forex Zone – Erratic activity as trade tensions send mixed signals

Intermediate

Here in The Forex Zone we review the day trade views for most the major Forex currencies in a volatile week for FX markets amid ongoing trade concerns and inverting yield curves. Again, we spotlight the significant levels to watch and the directional biases for the key Forex pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Downside threat to key 1.1069

A plunge Thursday through 1.1129 and 1.1113 supports to reinforce the Tuesday-Wednesday selloff (to breakout of the range of the past week), reinforcing the topping and negative theme and to keep risks lower Friday.

For Today:

  • We see a downside bias for 1.1090; break here aims for key 1.1069, maybe towards 1.1025.
  • But above 1.1133 opens risk up to 1.1159.
eurusd chart

GBPUSD: Clinging to a negative theme again today

An unexpected rebound Thursday above 1.2001/07 and 1.2148 resistances, but then a stall back from just above here (from 1.2151) to just cling to a negative tone and leave the bias back lower for Friday.

For Today:                                               

  • We see a downside bias for 1.2066 and 1.2013/00; break here aims for 1.1955 and 1.1903/01.
  • But above 1.2151 opens risk up to 1.2210, which we would look to try to cap.
gbpusd chart

USDCAD: Risks higher

A dip and a bounce Thursday from new support at 1.3280 to hold onto upside forces from Wednesday’s strong rebound through multiple resistances, keeping the bias higher for Friday.

For Today:

  • We see an upside bias for 1.3345; break here aims for 1.3383 and maybe key 1.3432.
  • But below 1.3280 opens risk down to 1.3233.
usdcad chart

AUDUSD: Risks just lower

A rebound effort Thursday but whilst capped by the .6816/22 resistance peaks and the down trend line from July we hold onto negative forces from Wednesday’s selloff through .6743/41 supports (for a small topping pattern) to keep risks lower again Friday.

Furthermore, this positive price action also sets the bias to the upside for Friday.

For Today:                                                         

  • We see a downside bias for .6732; break here aims for key .6707 and maybe .6673.
  • But above .6816/22 opens risk up towards .6868.
audusd chart

NZDUSD: Bias negative

A prod lower to .6417 Thursday and a low-level consolidation after Wednesday’s roll lower, to highlight negative forces from the earlier July plunge lower, to keep risks lower for Friday.

For Today:

  • We see a downside bias for .6417; break here aims for quickly opens risk down to .6400/6396 and maybe the low at .6376.
  • But above .6471 opens risk up to .6499.
nzdusd chart

USDJPY: Bias lower

A spike higher and a failure back lower on Thursday to sustain a negative bias from Wednesday’s selloff (that rejected Tuesday’s aggressive rally up through multiple resistances), to leave risks lower for Friday.

For Today:

  • We see a downside bias for 105.60; break here aims for 105.02/00.
  • But above 106.35 opens risk up to 106.78 and 106.98/107.09.
usdjpy chart

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