The Forex Zone – The Pound (GBP) corrects on Brexit and general election concerns

Intermediate

The US Dollar stays broadly weak (apart from a rebound late in the week), whilst October GBP strength sees a correction.

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

EURUSD: Bias switches lower

A Thursday rally, failure and selloff for a bearish outside pattern through 1.1100 support, to resume negative pressures from Tuesday’s setback and for now reject upside forces from the earlier October surge through key 1.1110 (for an intermediate-term bull shift), to switch risks lower for Friday.

For Today:

  • We see a downside bias for 1.1091; break here aims for 1.1063 and maybe 1,1021.
  • But above 1.1163 opens risk up to 1.1183/91.
EURUSD

GBPUSD Risks flips lower

A Thursday rally failure and push lower for a bearish outside pattern through various supports as deep as 1.2814 (to 1.2787), to resume negative pressures from Tuesday’s selloff through 1.2871/69 supports, to flip risks lower for Friday.

For Today:                                               

  • We see a downside bias for 1.2812 and 1.2787; break here quickly aims for 1.2756 and maybe towards 1.2654.
  • But above 1.2903/05 opens risk up to 1.2950 and maybe 1.3013.
GBPUSD

USDCAD: Bear bias intact

A prod lower Thursday to reinforce Wednesday’s setback and further reject Tuesday’s spike up just above our 1.3118 resistance to then fail back lower from 1.3123, to sustain downside forces from the October plunges through our 1.3129/22 and 1.3201/00 support areas (and the up trend line from July), to keep risks to the downside Friday.

For Today:

  • We see a downside bias for 1.3050; break here aims for 1.3036 and maybe towards 1.3010/00.
  • But above 1.3099 opens risk up to 1.3123 and 1.3146, maybe 1.3182.
USDCAD

AUDUSD: Risks flip lower

A Thursday selloff through .6831 and .6811 supports, rejecting upside forces from Monday’s extension up above .6858 resistance, to signal a more negative tone and shift the bias lower for Friday.

For Today:                                                         

  • We see a downside bias for .6806; break here aims for .6776 and maybe .6749.
  • But above .6845 opens risk up to .6870 and .6883.
AUDUSD

NZDUSD: Small top and downside risks

A Thursday selloff through the .6382 support to ease bull force from last week’s push above the key .6354 level and notable .6362 September resistance, to keep the bias higher for Friday.

For Today:

  • We see a downside bias for .6361; break here aims for .6318.
  • But above .6408 opens risk up to .6436.
NZDUSD

USDJPY: Still an upside bias

A prod higher Thursday to build on Wednesday’s rebound from just below our 108.27/23 support area (from 108.22) and upside forces from the strong, mid-October advance and intermediate-term bullish shift through the key 108.45/48 peaks, to keep the bias higher for Friday.

For Today:

  • We see an upside bias for 108.75 and 109.00; break here aims for key 109.32, maybe then towards 109.60/62.
  • But below 108.23/22 opens risk down to 108.02, maybe 107.85.
USDJPY

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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