Market Forecast 10/10/2017
EUR/USD has moved into the bullish zone, GBP/USD is attempting to break an important resistance and USD/JPY is about to test a major support at 112.30.
EUR/USD Forecast – Euro Turned Bullish
- The Euro started an upside move after trading as low as 1.1668 against the US Dollar.
- There was a break above a major bearish trend line with resistance at 1.1742 on the hourly chart of the EUR/USD pair.
- Today, the German Trade Balance report for August 2017 was released by the Statistisches Bundesamt Deutschland.
- The forecast was €20.0B, but the actual was positive as there was a trade surplus of €21.6B.
The Euro fell during the past few days and traded below the 1.1720 support against the US Dollar. The EUR/USD pair traded as low as 1.1668 and later started an upside move.
During the upside move, there was a break above a major bearish trend line with resistance at 1.1742 on the hourly chart and the 100 hourly simple moving average.
On the downside, there is a bullish trend line forming with support at 1.1760, which can be considered as a buy zone in the short term with a stop below the 100 SMA.
German Trade Balance
Today in the Euro Zone, the German Trade Balance report for August 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was slated for a trade surplus of €20.0B.
However, the actual result was above the forecast as there was a trade surplus of €21.6B, which was also better than the last revised €19.3B. Exports of goods and services in August 2017 were up 3.1%, more than the forecast of +1%. Imports of goods and services in August 2017 were up 1.2%, more than the forecast of +0.5
The overall result was positive and could help EUR/USD is gaining ground above the 1.1750 level.
GBP/USD Forecast – Can Cable Break 1.3200 Resistance?
- The British Pound has started recovering from the 1.3030 support against the US Dollar.
- The GBP/USD pair is heading towards a bearish trend line with resistance at 1.3200 on the hourly chart.
The British Pound was under a lot of pressure this past week and traded below 1.3100 against the US Dollar. The GBPUSD pair traded as low as 1.3026 and is currently correcting higher.
The pair broke a short-term bearish trend line at 1.3090 and the 100 hourly simple moving average. However, it is facing a major hurdle near 1.3200 and a bearish trend line on the hourly chart.
As long as the pair is below the 1.3200 handle, it remains in the bearish trend. A break above 1.3200 could take GBP/USD towards 1.3280.
USD/JPY Forecast – US Dollar Struggling to Hold 112.30 Vs Yen
- The US Dollar is trading in a range above a key support at 112.30 against the Japanese Yen.
- The USD/JPY pair is currently trading below the 100 hourly simple moving average and 112.75.
The US Dollar mostly traded in a range below 114.00 against the Japanese Yen. On the downside, there is a crucial support forming at 112.30 and it seems like the pair might test the stated level soon.
The 112.30 support is very important and must hold losses in the short term. On the upside, USD/JPY needs to clear the 100 hourly simple moving average and 112.75 to move towards the 114.00 resistance.
Overall, the pair remains buy near 112.30 as long as there is no close below 112.00.
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