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

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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