On Thursday, the greenback floated near a one-week high versus peer currencies on the back of positive Sino-U.S. trade talks in G20. Moreover, the hawkish remarks from the Federal Reserve, confronting Donald Trump’s criticism made a strong point in dollar’s favor. Here’s what we should watch today.
Economic Events to Watch Today
EUR/USD – Daily Outlook
The pair EUR/USD is stable despite the US-China trade temporary patch up, focus on German inflation. On Thursday, the pair EUR/USD is almost on a stable track as it continues to trade sideways, despite the statement of China-U.S trade patch up.
The EUR/USD is trading at 1.1360, down 0.10% on the day. The U.S. Dollar bullish movement could be due to the 3 basis points surge in the U.S. 10-year yield as to purchase bonds; one should purchase dollar first. Ultimately it increases dollar demand.
EUR/USD’s technical outlook is still bullish with the pair holding above the inverse head-and-shoulders neckline support (former resistance). Moreover, the pair is likely to face immediate support around 1.1350 and 1.1320, the 23.6% and 38.2% Fibonacci retracement levels. So consider staying bearish below 1.1375 today to target these levels.
Daily Support and Resistance
S3 1.1238
S2 1.1306
S1 1.1336
Pivot Point 1.1374
R1 1.1404
R2 1.1442
R3 1.151
GBP/USD – Daily Outlook
The market is giving less attention to United kingdom policies because all eyes stay on G-20 meeting. The pair GBP/USD moving modestly flat around 1.2680 as the favorite UK PM campaigner Boris Johnson’s promise to leave the E.U. by October 31, even without a deal. Whereas, the U.S. Dollar presented support over dovish comments by St Louis Fed President James Bullard and the Fed Chair Jerome Powell. Moreover, U.S. data can offer intermediate trade opportunities.
Daily Support and Resistance
S3 1.2491
S2 1.2603
S1 1.2645
Pivot Point 1.2715
R1 1.2757
R2 1.2827
R3 1.2938
The GBP/USD pair is still holding above 1.2660, so you guys are suggested to stay bullish and bearish below this level with an upper target of 1.2720 and bearish target of 1.2605.
AUD/USD - Daily Outlook
AUD/USD on the buying around 0.6990 due to US-China trade positive outcome. During the Asian session, the AUD/USD continues to trade bullish nearly 0.6990 due to positive comments from the U.S. treasury secretary Steve Munchin. The U.S. Treasury Secretary recently added that he is expecting a trade deal with China and 90% worked is already done.
Daily Support and Resistance
S3 0.6886
S2 0.6923
S1 0.694
Pivot Point 0.6959
R1 0.6977
R2 0.6996
R3 0.7033
The pair has been climbing firmly since last week, and a correction is expected now — the vital resistance at 0.7000. If the correction takes place, the vital support is likely to be around 0.6935/40.
On the upper side, a bullish breakout of 0.7000 can lead Aussie towards 0.7020. A daily close well above 0.7010 could mean the Aussie is ready to rise further. Good luck!
