The Forex Zone – Erratic trading after Fed rate cut


An erratic tone across FX markets in the wake of a rate cut from the Fed.

The Forex Zone focuses on day trade opportunities for the major Forex pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Bias stays higher

A resilient consolidation Thursday after Wednesday’s setback held above 1.0989/80 supports, to sustain upside forces since the erratic session through the September ECB Meeting (that saw an initial selloff to rebound from just above the September cycle low at 1.0924, from 1.0926), to keep risks higher for Friday.

For Today:

  • We see an upside bias for 1.1082 break here aims for 1.1109/16, maybe towards key 1.1164.
  • But below 1.0991/80 opens risk down to 1.0926/24.

GBPUSD: Intermediate-term bull shift further reinforced

A strong rally Thursday to build on and reinforce Tuesday’s strong push higher to break our key 1.2518 impulse resistance from July (to shift the intermediate-term outlook bullish), to keep risks higher for Friday.

For Today:                                               

  • We see an upside bias for 1.2557; break here aims for 1.2578 and then 1.2612.
  • But below 1.2485 opens risk down to 1.2438.

USDCAD: Threat stays higher

A dip Thursday but to hold above 1.3229 support, after Wednesday’s firm advance just above 1.3300 resistance, sustaining upside forces from the mid-September surge (above resistances at 1.3247 and 1.3282), to keep risks higher for Friday.

For Today:

  • We see an upside bias for 1.3310; break here aims for 1.3339 and 1.3383.
  • But below 1.3229 opens risk down to 1.3201/00, maybe 1.3172.

AUDUSD: Risks stay lower

A notable selloff Thursday through .6825, 6809 and .6791 supports, to reinforce Wednesday’s push lower after the Fed decision, fully reciting upside forces from the early September surge, to keep the bias lower Friday.

For Today:                                                         

  • We see a downside bias for .6775; break here aims towards key .6756.
  • But above .6829 opens risk up to .6858.

NZDUSD: Bias stays lower, now to key .6267

A Thursday setback after Wednesday’s push lower after the Fed Meeting now below .6318 and .6300 supports, to reinforce Tuesday’s selloff and keep the bias lower for Friday.

For Today:

  • We see a downside bias for .6282; break here aims for key .6267, maybe .6250.
  • But above .6320 aims for .6362 and opens risk up towards .6389.

USDJPY: Holding onto a positive bias

A prod higher and a setback Wednesday-Thursday up to 108.48 and the below 107.93 support, but to hold at 107.75 and whilst above here we hold onto immediate upside pressures from the September bullish extension, to keep risks higher for Friday.

For Today:

  • We see an upside bias for 108.48; break here aims for 108.77 and maybe 109.00/01.
  • But below 107.75 aims at 107.44.

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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