The Forex Zone – US Dollar strength resumes

Intermediate

The US Dollar has seen a strong recovery over the past week in reaction to the early November publication of the October US Employment report, which was very robust. The recovery has been assisted by broadly positive news flow from the US-China trade talks.

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

EURUSD: Downside threat to the key 109.89/82 area

A Thursday selloff to reinforce Tuesday’s plunge just below 1.1071/63 supports for a Double Top pattern, to keep risks lower for Friday.

For Today:

  • We see a downside bias for 1.1035; break here aims for 1.1021 and maybe the key 109.89/82 area.
  • But above 1.1092 opens risk up to 1.1117.
eurusd chart

GBPUSD: Risks lower to key 1.2787

A Thursday selloff below 1.2805 to reinforce the Wednesday surrender of the Triangle support line and losses from the start of November from 1.2976, to keep risks lower for Friday.

For Today:                                              

  • We see a downside bias for 1.2792; break here quickly aims for key 1.2787 and 1.2756.
  • But above 1.2858 opens risk up to 1.2895, maybe 1.2938.
gbpusd chart

USDCAD: Bias higher into Canadian Employment report

A solid consolidation Thursday after Wednesday’s advance above 1.3180, to sustain upside pressures from the latter October surge after the Bank of Canada interest rate decision, to keep risks to the upside Friday.

For Today:

  • We see an upside bias for 1.3208/12; break here aims for key 1.3240, maybe towards 1.3294.
  • But below 1.3146 opens risk down to 1.3107/00 and maybe towards 1.3071.
usdcad chart

AUDUSD: Risks higher

A Thursday rebound up through .6907/08 resistances, to reject the recent probe below our 6873/71 support area, to resume the positive tone from latter October and to shift risk back to the upside Friday.

For Today:                                                        

  • We see an upside bias for .6913; break here aims for .6929 and .6955.
  • But below .6858 opens risk down to .6845 and maybe .6806.
audusd chart

NZDUSD: Threat lower to key .6331

A probe lower Thursday to reinforce Wednesday’s rebound failure to probe below the up trend line from mid-October and .6368/67 support, to keep the threat lower for Friday.

For Today:

  • We see a downside bias for .6339; break here aims for key .6331 and maybe .6318.
  • But above .6392 opens risk up to .6411, maybe .6431.
nzdusd chart

USDJPY: Bull bias affirmed

A dip and a strong rally Thursday from just below 108.79 support (from 108.62), to push to a new recovery high through key 109.29/32 resistances, affirming upside forces from the Monday-Tuesday surge, to keep the bias higher Friday.

For Today:

  • We see an upside bias for 109.49 and 109.60/62; break here aims for 109.93, maybe 110.34
  • But below 109.03/01 opens risk down to 108.62.
usdjpy chart

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

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

USDJPY aiming back lower (USDJPY forecast)

Global financial markets have shifted back to more of a “risk off” phase since the start of Q2 into April, with stock averages lower (see our recent reports on the DAX and S&P500 ).In turn, this “risk off” phase has seen broader US Dollar strength resuming, except against the Yen, with the safe haven Japanese currency probing lower against the US Dollar.Despite a small USDJPY… Continued

GBPUSD stays resilient

Day trade outlook: Resilient consolidation, risks stay higher Again, a resilient consolidation Wednesday (as also seen Tuesday) after the spike lower and rebound from 1.2242, retaining a positive tone from the latter March surge above key 1.2423 (to switch the intermediate-term bear trend to neutral), to keep the risk higher into Thursday.  We see an upside bias for 1.2444 then 1.2485; a break above aims for 1.2528, 1.2577 and maybe towards 1.2624/41.But… Continued

Euro recovery theme intact, despite dip

A Euro dip versus the US Dollar to start the week, after EURUSD surged back higher last week.EURUSD has recouped much of the loss sustained through mid-March, during the panic buying of US Dollars.Despite this week’s early dip, we see this as corrective for now and see an upside theme resuming today, aiming EURUSD back higher. EURUSD day trade outlook: Looking for a rebound after… Continued

Corrective moves for stocks and the US Dollar

Macroeconomic/ geopolitical developments The COVID-19 coronavirus continues to spread globally, with the current epicentre still in Europe, but quickly shifting to the US. The British Prime Minister, Boris Johnson and Heath Secretary Matt Hancock have both tested positive for coronavirus (though symptoms are understood to be mild).The surge in cases in New York and the tri-state area of New York, New Jersey and Connecticut has… Continued

Dollar reverses, breaks key support (DXY)

Euro breaks up (EURUSD)Pound hits major resistance (GBPUSD)Dollar-Yen refuses to rise with equities (USDJPY) Continued

Forex Brokers in your location