In this video from the morning of October 25, 2023, I kick off the Forex trading day with a technical overview of EURUSD, USDJPY and GBPUSD. What are the biases, risks, objectives for these three main currency pairs?
EURUSD: EURUSD recovered during the Asian session and was able to surpass its 100 hour moving average (currently at 1.06026). But it remained below the oscillating zone we were targeting between 1.0608 and 1.0616. The inability to extend above this swing zone gave sellers the green light to technically push lower during the European session. The fall took the price below its 200 hour moving average of 1.05736 and the last 5 hours of trading saw the price move above and below this moving average level. On the other hand, the low of last Friday’s session stood at nearly 1.05645. A break below this level with momentum would open the door to further downside potential for the pair as it moves further away from its 200 hour moving average.
USDJPY: USDJPY trading was range bound today. On the other hand, the 100-hour moving average stands at 149.823, which has kept the supports in a good direction. On the upper side, the natural level of 150.00 remains a resistance level for buyers. What fundamentally helps the pair is that yields are higher in the US by around 4.5 basis points in the 10-year tranche. This tends to support the currency. However, fears of a Bank of Japan above 150.00 limit the rise. Traders are looking for the next break and run.
GBPUSD: GBPUSD rallied during the Asian session, but found willing sellers near the 100 and 200 hour moving averages (around the 1.2171 level). The inability to extend with momentum above these moving averages ultimately gave sellers the green light to push lower during the European session from a technical perspective. The fall took the price down into a swing zone ahead of October’s extremes. This oscillating zone is between 1.21056 and 1.21109. Below that are last week’s lows near 1.2088. At the top, watch Monday’s session lows at 1.21426 for near resistance.