London Forex Report: Buck Catches Late Bid

London Forex Report: Buck Catches Late Bid

London Forex Report: PMI services in the US accelerated to 54.8 in October, at its quickest in almost a year. New home sales rebounded to a 9-year high while wholesale inventories snapped a two month decline to increase 0.2% MOM. Recent positive bag of economic indicators continue to bolster hopes 3Q GDP growth due tomorrow, is poised to pick up steam. USD dipped against 70% of G10FX on the back of firmer risk appetite as well as rebounding European majors. The USD Index was uninspired by improving US data, sliding in Asian and European trades before recovering slightly to narrow losses to 0.09% at 98.62

FX Majors: EUR climbed from a seven-month low on signs the European economy may be improving enough to reduce pressure on the European Central Bank (ECB) to further ease monetary policy GBP UK’s property market continued to show signs of underlying weakness following Britain’s vote to leave EU. The Centre for Economic and Business Research forecasted that price growth will moderate to 2.6% next year from 6.90% this year. Home loans surge 2.7% to 38.5k in September but dropped 15.0% from a year ago despite record low mortgage rates, affirming that momentum in the property market was losing steam. JPY Separately, Japan’s small business confidence index climbed to its highest level since March despite modest economic growth. The index edged up to 48.3 in October (September: 47.7).

EURUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Bears seek the next downside objective sited at 1.0845, below here opens 1.08. Near term resistance is sited at 1.0930/50, medium term resistance is sited at 1.1030 only over 1.1230 eases bearish bias.
Retail Sentiment: Bullish
Trading Take-away: Short

GBPUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: As 1.2250 rejects near term corrective advances bears now target pivotal 1.20. Medium term resistance is sited at 1.2330. Only a close over 1.25 eases bearish pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

USDJPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing corrective objective at 104.86 achieved expect profit taking, near term support is at 103.80 only a close below 102.80 eases bullish pressure. As downside supports survive and 105 is atained bulls target 107 symmetry swing objective next
Retail Sentiment: Bearish
Trading Take-away: Long

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: 113.30 removed, channel resistance at 113.95 rejects on first test, while this area caps bears target 1.12 only a close over 114.30 eases bearish pressure.
Retail Sentiment: Bearish
Trading Take-away: Long

Commodities FX: GOLD was little changed but market participants expect further gains after a retreat in the dollar and signs of healthy physical demand. OIL continued to decline, falling nearly 2% on Wednesday after Russia’s energy minister was reported by the country’s Interfax agency as being in favour of production freezes versus cuts. Russia, Iran, Libya and Nigeria are all coming out against cuts on the path to the 30 November OPEC meeting in keeping with market warnings from the beginning about not getting carried away with the knee-jerk optimism that followed the Saudi-led OPEC announcements AUD lifted as inflation ran slightly faster than expected, strengthening views that the central bank will hold rates into next year. CAD stressed by lower oil prices and lasting risk that the Bank of Canada will cut interest rates further. The loonie weakened since the Bank of Canada admitted last week that it had considered cutting interest rates at its policy meeting.

AUDUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: A close over .7730 reverses bearish bias and focus shifts to .7830. A further rejection above .7700 would open a quick test of .7500
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDCAD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: 1.3360 equidistant AB=CD upside objective achieved as 1.3230 supports bulls target a move to 1.35, only below 1.2960 threatens this objective and suggests a test of pivotal 1.2820.

Retail Sentiment: Bearish
Trading Take-away: Long

XAUUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Anticipate test of 1229 symmetry swing support failure here lets bears target 1200 as the next downside objective, near term resistance is sited 1276 ahead of pivotal 1300.

Retail Sentiment: Bullish
Trading Take-away: Short

USOIL
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing objective sited at 52.40 is the primary upside objective. Failure at 49.50 opens symmetry swing support at 47.20
Retail Sentiment: Neutral
Trading Take-away: Neutral

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