New York Forex Report: USD On The Up

New York Forex Report: USD On The Up

New York Forex Report: EUR on the slide lower grinding down to test 1.1085 bids ZEW 6.2 in October from 0.5 in September and compared 4.3 expected, did little to offer buyers any solace as the broader USD bid theme continues to dominate trade. GBP joined the Euro in a steady decent to print a London session low of 1.2249 amid ongoing GBP negativity, Ex-IMF official Ashoka Mody says 1.10 is „fair value‟ level for cable according to comments reported in the Telegraph. Commodity FX continues to track lower CAD and AUD both under pressure in London trading as Crude come off it best levels of 51.58 trading 50.82 as of writing. is trading at an 11-week high, supported by rising US rates as US 2-year yields reach the highest since early June. The data calendar is light today, which will allow markets to continue pushing the USD higher ahead of more important data releases later in the week—the September FOMC minutes on Wednesday and US retail sales on Thursday.

FX Majors: EUR Eurozone investor confidence picked up for the 3rd straight month to a 4-month high at 8.5 in October, adding to signs Brexit shaken confidence is on the mend that would help support continued recovery in the Eurozone going forward. GBP British consumers picked up the pace of their spending in September after a weak August. Consumer spending rose by 1.3% from a year earlier, recovering from a fall of 0.3 percent in August. However, the country’s planned exit from the European Union is likely to weigh on sales ahead. JPY Japan’s current account surplus increased to ¥2 trillion in Aug, rising slightly from ¥1.94 trillion previously and besting estimates of a narrower surplus of ¥1.5 trillion.

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

Technical: Anticipated retest of 1.1120 underway a break of this price pivot opens equidistant swing support at 1.1085. Near term resistance is sited at 1.12 over 1.1220 eases near term bearish bias.
Retail Sentiment: Bullish
Trading Take-away: Short

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

Technical: As 1.2440 rejects corrective advances bears target a retest of 1.20. Only a close over 1.30 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: Bullish attention on the upside equidistant swing corrective objective at 104.86 near term support is sited 102.80
Retail Sentiment: Bearish
Trading Take-away: Long

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

Technical: 116.11 symmetry swing resistance stalls advance A close over 116.50 opens the larger scale AB=CD objective at 121.00 Near term support is sited at 114.60

Retail Sentiment: Bearish
Trading Take-away: Long

Commodities FX: GOLD price initially went higher as the precious metal tracked the strong rebound in crude oil price despite the stronger US dollar. The gold price decreased by US$8.60 to US$1,257.50. OIL markets rebounded strongly on Monday (10 Oct) after Monday’s brief retreat when Russian President Valdmir Putin told the World Energy Congress in Istanbul, Turkey on Monday that “Russia is prepared to join joint measures limiting production and calls on other exporting countries to do the same.” OPEC is scheduled to meet in November to put forth the details of the September Algiers agreement. The US Nymex WTI futures went higher by US$1.54 to US$51.35 AUD The NAB survey found that business conditions improved in Sept, pushing the gauge up from 7 to 8 while business confidence remained unchanged at 6. Meanwhile, home loans fell more than expected on a MOM basis, down 3.0% in Aug but softened from a 4.5% decline previously. This set of data suggests growth momentum in the Australia economy remains moderate and could spare the RBA from delivering another rate cut this year. CAD s no surprise to see the Canadian Dollar up a good chunk on Monday in response to the positive OIL flow from Putin comments Russia was ready to join a proposed cap on oil output by OPEC members. Looking ahead, Canada housing starts and the US labour market conditions index are the key standouts on today’s calendar.

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

Technical: Symmetry swing resistance sited at .7685 stalls advance as this area contains .7550 is the next downside objective ahead of .7412 symmetry swing support. Over .7700 opens .7730.

Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: As 1.30 supports 1.3372 is the equidistant AB=CD corrective objective, only below 1.2960 threatens near term bullish bias. Near term symmetry swing support is sited at 1.3030
Retail Sentiment: Neutral
Trading Take-away: Neutral

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): Bullish – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing objective sited at 52.40 is the primary upside objective as 48.50 supports the advance , only below 45.00 would suggest false upside break a continuation of a more complex corrective pattern
Retail Sentiment: Bearish
Trading Take-away: Long