The EUR/USD currency pair
Technical indicators of the currency pair:
- Prev. Open: 1.0969
- Prev. Close: 1.0969
- % chg. over the last day: 0.0 %
The euro declined on Tuesday amid dovish comments from ECB Executive Board representative Elderson and ECB Governing Council representative Nagel, who supported the ECB in continuing to cut interest rates. However, euro losses were limited by positive news about German industrial production. Swaps discount the odds of a 25bp ECB rate cut at 95% for the October 17 meeting and 100% for a 25bp rate cut at the December 12 meeting.
Trading recommendations
- Support levels: 1.0950, 1,0918
- Resistance levels: 1.0979, 1.1013, 1.1036, 1.1079, 1.1136, 1.1163
The EUR/USD currency pair’s hourly trend is bearish. The price failed to consolidate above the moving average lines. The sellers’ pressure remains despite the MACD divergence. Given the price consolidation below 1.0979, the price is now aiming to test the liquidity below 1.0950, where we can look for buying if buyers react.
Alternative scenario:if the price breaks the resistance level at 1.1099 and consolidates above it, the uptrend will likely resume.
News feed for: 2024.10.09
- German Trade Balance (m/m) at 09:00 (GMT+3);
- US FOMC Member Logan Speaks at 16:15 (GMT+3);
- US FOMC Member Barkin Speaks at 17:30 (GMT+3);
- US FOMC Member Goolsbee Speaks at 17:30 (GMT+3);
- US FOMC Member Williams Speaks at 18:00 (GMT+3);
- US FOMC Member Jefferson Speaks at 19:30 (GMT+3);
- US FOMC Meeting Minutes at 21:00 (GMT+3).
The GBP/USD currency pair
Technical indicators of the currency pair:
- Prev. Open: 1.3072
- Prev. Close: 1.3103
- % chg. over the last day: +0.23 %
The gap between UK bond yields and their German counterparts widened to the widest in more than a year amid contrasting expectations of lower interest rates and growing concerns over the upcoming UK budget. The UK economy has been stronger than estimates, and markets expect a more gradual rate cut. The rise in yields also reflects growing speculation that the government will have to sell more debt to fill the budget hole. Chancellor of the Exchequer Rachel Reeves will present a crucial budget on October 30.
Trading recommendations
- Support levels: 1.3047, 1.3035
- Resistance levels: 1.3175, 1.3290, 1.3327, 1.3377, 1.3389
From the point of view of technical analysis, the trend on the GBP/USD currency pair is bearish. Intraday, sellers are pushing the price lower. The price is unable to consolidate above the moving averages. Sellers will likely try to test the liquidity level below the support at 1.3047, where we can look for buying, provided the initiative from buyers on the lower timeframes.
Alternative scenario:if the price breaks the resistance level at 1.3306 and consolidates above it, the uptrend will likely resume.
News feed for: 2024.10.09
There is no news feed for today.
The USD/JPY currency pair
Technical indicators of the currency pair:
- Prev. Open: 148.07
- Prev. Close: 148.17
- % chg. over the last day: +0.07 %
The Japanese yen stabilized at 147.8 per dollar on Tuesday after falling to a seven-week low in previous sessions as investors continued to assess the outlook for the Bank of Japan’s monetary policy. In its latest quarterly report, the Central Bank said price and wage growth is spreading across Japan but acknowledged concerns about small and medium-sized enterprises with shrinking margins. Meanwhile, data showed that real wages in Japan fell by 0.6% in August after two months of growth, and household spending fell by 1.9%, a negative for the JPY.
Trading recommendations
- Support levels: 147.50, 146.90, 146.02, 144.20, 143.53, 142.22
- Resistance levels: 149.37, 151.26
From a technical point of view, the medium-term trend of the USD/JPY currency pair is bullish. The situation has not changed. The price is trying to test the resistance zone above 149.37. The MACD divergence is getting stronger, which increases the probability of corrective movement from this zone. During the day, we can look for buying from moving averages but with short targets. For selling, we should consider 149.37, but also with confirmation in the form of sellers’ initiative.
Alternative scenario:if the price breaks down the support level of 146.90, the downtrend will likely resume.
News feed for: 2024.10.09
- There is no news feed for today.
The XAU/USD currency pair (gold)
Technical indicators of the currency pair:
- Prev. Open: 2643
- Prev. Close: 2622
- % chg. over the last day: -0.80 %
Gold prices fell to $2605 an ounce on Tuesday, hitting their sharpest decline in six weeks, after strong US jobs data dampened expectations of a larger rate cut by the Federal Reserve and investors awaited the minutes of the Fed’s latest meeting. Markets now expect an 87% chance of a more modest 25 basis point rate cut in November. Despite the pullback, gold’s appeal as a safe-haven currency continues to be supported by rising tensions in the Middle East. Meanwhile, China’s Central Bank refrained from buying gold for its reserves for the fifth consecutive month in September.
Trading recommendations
- Support levels: 2605, 2584, 2574, 2561, 2541, 2528, 2522
- Resistance levels: 2624, 2632, 2669, 2700
From the point of view of technical analysis, the trend on the XAU/USD is bullish. Gold left the broadly volatile flat and reached the support level of 2605, where buyers showed a moderate reaction. With these market conditions, intraday short selling can be looked for to test the support level once again. Buying should be considered from 2605, provided buyers react again. A move and consolidation of the price below 2600 is highly undesirable for holding the medium-term uptrend.
Alternative scenario:if the price breaks down the support level of 2569, the downtrend will likely resume.
News feed for: 2024.10.09
- US FOMC Member Logan Speaks at 16:15 (GMT+3);
- US FOMC Member Barkin Speaks at 17:30 (GMT+3);
- US FOMC Member Goolsbee Speaks at 17:30 (GMT+3);
- US FOMC Member Williams Speaks at 18:00 (GMT+3);
- US FOMC Member Jefferson Speaks at 19:30 (GMT+3);
- US FOMC Meeting Minutes at 21:00 (GMT+3).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.