• The dollar index (KTM: USDX) began Thursday on a back foot again following a mixed session. Besides U.S yields on the 10-year Treasuries closed at 3.22% up from Tuesday’s closing of 3.21%.
  • AUD, EUR, GBP, and NZD continue to rebound against the USD this morning with 0.35% each.
  • In commodities, Gold and Silver remain neutral whereas Brent and WTI crude fell more a percent.

Thursday FX insights:

In majors, EURUSD and GBPUSD are trading in line with our bullish forecast. Besides Gold and Silver too joined the club.

GBPUSD trade update

EURUSD gained 0.40% this morning to 1.1570; intraday resistance seems to be at 1.1585 its 38.2 fib reaction (1.1815-1.1430 low) coincides with 50MA. Above this 1.1600 and 1.1620 exists against supports 1.1540 and 1.1500/1.1480. The price ran through the targets we set yesterday.

The daily RSI is catching the momentum upside, and the oscillator just has been turned bullish. Based on these, a weekly close above 1.1630 the current rally could stretch the arms to 1.1730.

USDJPY: The lower low and lower high pattern drag the pair to sub-112 levels. The price action lost both 14 and 20MAs, now 50MA in focus finds at 111.80. As of now this morning the price made a low at 111.95. We believe today’s pivotal is 111.80.  Flipside resistance seems to be at 112.80, 113.20 and 113.50. Any shift in sentiment could change the short-term term to a minor rally to 112.80 and 113.20 levels.

While the daily RSI study has been propelling down and the oscillator is remaining bearish. Based on this, below 111.80 the current retracement extends further to 111.00/110.80 its 20MA (Weekly).

Bitcoin: The most famous cryptocurrency slump of more than 5.0% in thin Asia trade, while manages to hold the parallel support zone. While the corrective A-B-C structure is pointing to 4700$ per coin. A break below 5630$ could strengthen this view.

In major equity indices, Australia’s ASX 200 (KTM: AUS200)  closed with 2.50% losses. The index runs through the target we set last week.

What’s on today?
In the U.S, data-wise we will see CPI data for September. We expect the CPI to rise 0.2% m/m basis. With the limited data releases, market participants remain to focus on the geopolitical concerns with ongoing Trade war risk especially US-China and rising bond yields which lead to the global equity indices sell-off.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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