USD/CAD tests major ceiling
The US dollar remains firm as traders expect resilient data later this week. On the daily chart, the price is probing last May’s double top near 1.3650, a major ceiling that so far has capped the greenback’s advance. Its breach would signal that the bulls are back in the game and stronger than ever, with October 2022’s peak of 1.3900 as a potential target later on. As the daily RSI shows an overextension, a pullback would be a test of the bulls’ resolve with 1.3570 as the first support and 1.3500 on the 20-day SMA as a second layer.
AUD/USD seeks to bottom out
The Australian dollar clawed back some losses after July’s retail sales exceeded expectations. The pair is looking to stabilise around its 9-month lows near 0.6370 with a preliminary bounce above 0.6480 pushing a few short interests out of the way. The former demand zone 0.6490-0.6500 from May’s low coincides with the 20-day SMA and is a major resistance to lift to instil confidence and open the door to a broader rebound to 0te.6610. On the flip side, a slip below 0.6370 would trigger a new round of sell-off towards 0.6200.
UK 100 probes resistance
The FTSE 100 recoups some losses as commodity prices register some upticks. The index so far has found support in the demand zone near the July low of 7240, offering the bulls some relief. Still, they are not out of the woods yet as the latest bounce could be due to short-term sellers’ profit-taking with support of a little bargain hunting. The demand-turned-supply zone of 7420 next to the 20-day SMA would be their first real test and a bullish breakout may extend gains to 7550. But a fall below 7300 may cause a reversal to 7000.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD holds near 1.0900 ahead of key ECB meeting
EUR/USD recovers modestly from multi-month lows and fluctuates at around 1.0900 Wednesday. The cautious market mood ahead of Thursday's ECB policy announcements, however, makes it difficult for the pair to continue to stretch higher.
GBP/USD recovers above 1.3000 after earlier selloff
GBP/USD recovers from the multi-month low it set near 1.2980 and trades above 1.3000. The data from the UK showed that the annual CPI inflation declined to 1.7% in September from 2.2% in August, weighing heavily on the Pound Sterling in the early European session.
Gold closes in on new record high above $2,980
Gold price scales higher for the second straight day on Wednesday – also marking the fourth day of a positive move in the previous five – and climbs toward the all-time-high it set at $2,685 in late September.
Why is the ECB set to cut interest rates again and what does that mean
The ECB is widely expected to cut interest rates on Thursday for the third time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
British inflation dips to 1.7% in September
And speaking of inflation and Europe, inflation in Britain not only fell below 2% in September but came in significantly lower than expected (1.7%y-o-y vs 1.9% expected).
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.