Daily Forex Preview – 20/10

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Trading was mostly mixed on Friday with the US Dollar Index managing to close a second day higher. European trading session was relatively quiet with the Euro extending losses against most of its peers, especially the Sterling and Australian Dollar.

Canada’s CPI was modestly higher with the headline CPI m/m up 0.1%, while Core CPI y/y was up 0.2%. US housing starts data was in line with estimates while the Prelim UoM consumer sentiment rose to 86.4, above expectations.

Economic data continues to be light in today’s European trading session with the only notable release coming from Canada. Global slowdown continues to be theme heading into this week. Traders will be closely looking at the Dollar Index’s strength as it bounced off the key support level at 84.75

 

Fundamentals Recap – October 17, 2014

  • German Bundesbank President Weidmann speech
  • Canada core CPI y/y up 0.2%, headline CPI m/m up 0.1%
  • US Building permits m/m softly below expectations at 1.02mn
  • US Housing starts rises 1.02mn as expected
  • Prelim UoM consumer sentiment beats estimates, rising to 86.4

 

Fundamentals – October 20, 2014

  • German PPI m/m expected to be unchanged, PPI y/y to decline -1%
  • Canada core CPI m/m to rise 0.1%, headline CPI to be unchanged
  • Eurozone current account
  • BoE’s Jon Cunliffe speech
  • Canada Wholesale trade m/m to rise 0.2%
  • FOMC member Powell speech

 

EURUSD Daily Pivots

R3 1.2899
R2 1.2872
R1 1.2815
Pivot 1.2779
S1 1.2723
S2 1.2686
S3 1.263

 EURUSDH1

EURUSDH1

EURUSD continues to be choppy with no clear directional bias. The consolidation after the previous declines possibly points to a continued downside move towards the main support at 1.27045. With economic data from Europe mostly quiet with the exception of the Eurozone trade balance and German PPI data, EURUSD could drift mostly on technicals.

 

USDJPY Daily Pivots

R3 108.008
R2 107.476
R1 107.199
Pivot 106.667
S1 106.39
S2 105.858
S3 105.581

 

USDJPYH1

USDJPY has been trending upwards in the early Asian session. However the gains are likely to be limited to the unfilled gap from last week at 107.74. Today’s session opened with an up gap at 106.923. The current price action at the technical resistance of 107.356 falls in at 38.2% of the previous declines. If this resistance holds we could see a drop to 106.923 gap before price rallies higher towards last week’s gap. Alternatively, if USDJPY continues to climb, it will be important to watch how price reacts near the gap as the 61.8% retracement of the declines comes in a bit higher at 108.23

GBPUSD Daily Pivots

R3 1.6229
R2 1.6177
R1 1.6136
Pivot 1.6081
S1 1.6036
S2 1.5985
S3 1.594

 

GBPUSDH1

As noted in Friday’s analysis, GBPUSD continued to push higher albeit modestly. The pair is now trading near a long term trend line, testing it from below for resistance. Price is also starting to form an ascending wedge pattern, but the breakdown could see a strong support at today’s pivot point and a technical support level. A break below this support could see GBPUSD drop towards 1.60245 levels to test the short term support level.

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Deepak Tiwari, a law graduate, has been working as a journalist for six years now. He currently writes on Bitcoin, economic, and Forex related news at ForexMinute, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers for readers, traders and brokers. His other specialties include writing on law & governance, finance, internet marketing, careers, politics, international relations & diplomacy, etc.